On Thursday, Nigerian President Bola Tinubu signed four major tax bills into law, introducing significant reforms that include exempting individuals who earn less than ₦83,000 per month from income tax, a move aimed at easing the tax burden on low-income earners and promoting economic growth.
The signing ceremony, held at the State House in Abuja, was attended by top government officials, including Senate President Godswill Akpabio, governors, ministers, and members of the Presidential Committee on Fiscal Policy and Tax Reforms.
The newly enacted laws, the Nigeria Tax Bill (Ease of Doing Business), the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill, are expected to streamline tax administration, increase revenue generation, and create a more business-friendly environment.
Tinubu says reforms will boost economy
In his address, President Tinubu emphasised that the reforms are a step toward economic transformation in the nation.
“What we did a few minutes ago is the way forward for our country’s prosperity. Leadership must help people take off, lead the way, and navigate every turn and twist. We must help them reach their destination. That is what we are doing,” he stated.
The President also noted that the reforms would open doors to new economic opportunities, declaring, “We are in transit; we have changed the roads, we have changed some of the misgivings, we have opened the doors to a new economy, business opportunities. We have shown the world that Nigeria is ready and open for business.”
Key highlights of the new tax laws
The Nigerian Tax Bill consolidates the country’s fragmented tax laws into a single statute, simplifying business compliance. Small enterprises earning ₦50 million or less annually will no longer pay Company Income Tax (CIT).
For salary earners, individuals earning ₦83,000 monthly (₦1 million annually) or below are now exempt from Pay-As-You-Earn (PAYE) tax. Additionally, higher-income earners will benefit from increased personal reliefs, reducing their tax burden.
The Nigeria Revenue Service (Establishment) Bill replaces the Federal Inland Revenue Service (FIRS) with a more autonomous agency, the Nigeria Revenue Service (NRS), tasked with improving revenue collection efficiency. Meanwhile, the Joint Revenue Board (Establishment) Bill ensures better coordination between federal, state, and local tax authorities to eliminate multiple taxes.
Senate President commends Tinubu’s tax laws
Senate President Godswill Akpabio praised President Tinubu’s leadership, stating, “We have always known that you are a thinker, that you are intellectually sound, and that you care for your country. This law would last for generations to come.”
Meanwhile, the Presidency assured that extensive stakeholder consultations were conducted to address concerns in response to some who feared revenue losses.
The new laws further introduce mechanisms for dispute resolution, including a Tax Appeal Tribunal and a Tax Ombudsman, to protect taxpayers’ rights.
With these reforms, the Tinubu administration aims to promote economic growth, reduce bureaucratic bottlenecks, and position Nigeria as a prime destination for investment.
Businesses and individuals await the promised ease of doing business and increased disposable income as the full implementation begins in 2026.