Nigeria’s new tax laws, effective January 1, 2026, mark one of the most ambitious fiscal reforms in the country’s history. With the introduction of the Nigeria Tax Act (NTA), the Nigeria Tax Administration Act (NTAA), and the Nigeria Revenue Service Act (NRSA), the government aims to simplify taxation, broaden the tax base, and strengthen economic growth.
Consolidation and Simplification of Nigeria’s New Tax Laws
One of the most significant shifts under Nigeria’s new tax laws is the consolidation of multiple tax statutes into a unified framework. Laws such as the Companies Income Tax Act, Personal Income Tax Act, Value Added Tax Act, and Capital Gains Tax Act have been repealed and merged into a single streamlined system.
This reform is expected to eliminate duplication and long-standing disputes over multiple taxation. According to the OECD Tax Policy Centre, tax consolidation improves compliance and reduces ambiguities. In Nigeria, this aligns with broader reforms already seen in sectors like real estate regulation in Ogun State and the housing fraud reporting portal launched by FMHUD.
Relief for Workers and Small Businesses
The new framework brings tax reliefs that will directly impact citizens and small enterprises. Workers earning less than ₦800,000 annually are now exempt from personal income tax.
For SMEs, companies with annual turnover of up to ₦100 million and assets not exceeding ₦250 million will be exempt from Company Income Tax (CIT), Capital Gains Tax (CGT), and the Development Levy. This increase from the previous ₦25 million threshold is expected to stimulate entrepreneurship, echoing similar economic drivers seen in Nigeria’s Abuja real estate market.
VAT Exemptions Under the New Tax Laws
Everyday Nigerians will feel relief through Value Added Tax (VAT) exemptions on essentials such as basic food items, educational books and tuition, and shared road transport. This move reduces the burden on households already struggling with the high cost of living.
It complements other government-led interventions in infrastructure and housing, like the Abeokuta-Ota-Lagos Road reconstruction covered by PMW.
Capital Gains, Digital Assets, and the Development Levy
Another important element of Nigeria’s new tax laws is the review of Capital Gains Tax. For companies, the CGT rate rises from 10% to 30%, while individuals will pay based on their income bands.
The reforms also introduce taxation on digital and virtual assets, including cryptocurrencies, reflecting global trends in taxing modern economic activities.
In addition, a 4% Development Levy replaces smaller sundry levies, reducing complexity while ensuring businesses continue to contribute to national development.
For a broader economic perspective, you can read our analysis of Dangote’s petrochemical expansion with Mitsui Chemicals to see how fiscal policy and private investment interact in Nigeria’s growth story.
Conclusion
By merging tax statutes, exempting low-income earners, expanding VAT relief, and modernizing taxation for digital assets, Nigeria’s new tax laws set the stage for a more transparent and efficient fiscal system. While relief measures will benefit households and SMEs, larger corporations will need to adjust to higher compliance and taxation responsibilities.
For further insight into economic shifts, see our coverage of Nigeria’s power grid reforms and real estate investment trends in Abuja.
For global comparisons, explore the World Bank’s research on tax reform and follow PMW for updates on housing, real estate, and economic developments.
