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Taxation

Nigeria’s new tax laws, in plain language

Nigeria's four tax reform acts took effect on 1 January 2026. They consolidate dozens of older tax laws, set new reliefs for low earners and small businesses, and rename the federal tax authority.

Key numbers

The new tax laws in seven numbers

Effective 1 January 2026 under the Nigeria Tax Act 2025.

₦800,000Annual income exempt from personal income tax
25%Top personal income tax rate, on income above ₦50 million
20%Rent relief, capped at ₦500,000 a year
0%Company income tax for small companies
30%Company income tax for other companies
4%Development levy on assessable profits (small companies exempt)
7.5%VAT rate, with basic food, education and health care exempt
Tool

Small company checker

Small companies pay no company income tax and no development levy. Check where your business stands.

Does your business qualify as a small company?

A quick guide, not tax advice. Confirm your position with the Nigeria Revenue Service or a tax professional.

The four acts

What each law does

Nigeria Tax Act

Sets out what is taxed, who pays and how much: income, company, VAT, capital gains and other taxes in one law.

Nigeria Tax Administration Act

Rules for registering, filing, paying and assessing taxes, including digital filing and penalties.

Nigeria Revenue Service (Establishment) Act

Replaces the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service (NRS).

Joint Revenue Board (Establishment) Act

Coordinates federal, state and local tax authorities to reduce multiple taxation and settle disputes.

Sources

Summaries for information only. Read the Acts or speak to a tax professional before making decisions.

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