Federal Government Gazettes Sweeping Tax Reforms in Landmark Fiscal Overhaul

The Federal Government has officially gazetted a suite of sweeping tax reform laws, signalling a landmark overhaul of Nigeria’s fiscal and revenue framework.

The reforms, signed into law by President Bola Ahmed Tinubu on 26 June 2025, were formally announced in a statement issued on Wednesday by Kamorudeen Yusuf, Special Assistant to the President on Special Duties.

The new legislation introduces a consolidated foundation for taxation, revenue administration, and inter-agency coordination. The four Acts include: the Nigeria Tax Act (NTA) 2025, the Nigeria Tax Administration Act (NTAA) 2025, the Nigeria Revenue Service (Establishment) Act (NRSEA) 2025, and the Joint Revenue Board (Establishment) Act (JRBEA) 2025.

Under the new framework: Small businesses with an annual turnover below ₦100 million and assets not exceeding ₦250 million are exempt from corporate income tax. The corporate tax rate for large enterprises may be reduced from 30% to 25%, subject to presidential discretion. A top-up tax will apply to companies with annual revenues exceeding ₦50 billion for domestic firms, and N750 million for multinational corporations. A 5% annual tax credit will be granted to qualifying projects in designated priority sectors. Companies earning revenues in foreign currencies will now be permitted to remit taxes in naira, based on official exchange rates.

According to the statement, the NTA and NTAA will come into force on 1 January 2026, while the NRSEA and JRBEA take effect from 26 June 2025.

The reforms are aimed at simplifying the tax regime, boosting support for small businesses, encouraging foreign and domestic investment, and reinforcing fiscal sustainability. They form a key component of President Tinubu’s Renewed Hope Agenda, which seeks to broaden Nigeria’s revenue base beyond oil dependency.