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Nigeria New Tax Laws: What You Need to Know

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President Bola Tinubu on Thursday signed four new tax laws aimed at modernising and streamlining the country’s tax system.

In the new tax law, the Value Added Tax rate remains at 7.5 per cent despite initial proposals to increase to 12.5 per cent, but its scope is expanded.Essential items—such as food, education, healthcare, public transport, residential rent, and exports—are zero-rated to ease inflationary pressure.

For revenue allocation is restructured: now 30 per cent of VAT proceeds are distributed based on consumption (rather than contribution), 50 per cent equally among states, and 20 per cent to population-based allocation.

With the latest development, it is expected that state revenue streams will increase, and it will also discourage tax evasion.

Overview of the four new lawsNigeria Tax Act:

Consolidates various tax rules into a single, simplified code, eliminating over 50 small, overlapping taxes. This reduces complexity and duplication, making it easier for businesses to comply.

Tax Administration Act:

Establishes uniform rules for tax collection across federal, state, and local governments, ensuring consistency and reducing administrative conflicts.

Nigeria Revenue Service Act:

Replaces the Federal Inland Revenue Service with the independent Nigeria Revenue Service, aiming for greater efficiency and autonomy in tax administration.

Joint Revenue Board Act:

Enhances coordination between different government levels and introduces a Tax Ombudsman and Tax Appeal Tribunal to handle disputes fairly.

Key objectives of the new tax rules

Simplify Tax System:

Reduces bureaucratic hurdles and overlapping taxes to make compliance easier, especially for small businesses and informal traders.

Increase Revenue Efficiency:

Aims to boost Nigeria’s tax-to-GDP ratio from 10% (below the African average of 16–18%) to 18 per cent by 2026 without raising taxes on essential goods.

Reduce Financial Burden:

Provides relief for low-income households and small businesses while ensuring high-income earners and luxury consumers contribute more.

Fund Public Services: Increased revenue will support infrastructure, healthcare, and education, reducing reliance on borrowing.Who benefits and how

Low-Income Households:

Individuals earning up to ₦1 million ($650) annually receive a ₦200,000 rent relief, reducing taxable income to ₦800,000, exempting them from income tax.

VAT exemptions on essential goods and services (food, healthcare, education, rent, power, baby products) lower living costs.

Small businesses:

Businesses with an annual turnover below ₦50 million ($32,400) are exempt from company income tax.

Simplified tax filing without requiring audited accounts reduces compliance costs.

Large businesses:

Corporate tax rates drop from 30 per cent to 27.5 per cent in 2025 and 25 per cent thereafter.Tax credits for VAT paid on expenses and assets allow businesses to recover the 7.5 per cent VAT.

Charitable, educational, and religious organisations:

Tax incentives for non-commercial earnings, encouraging community-focused activities.

Impact on different groups

Low-Income Earners:

Benefit most from income tax exemptions and lower costs for essentials, increasing disposable income.

Small Businesses and informal traders:

Simplified rules and tax exemptions encourage compliance and reduce financial strain, potentially formalising more businesses.

High-income earners and luxury consumers face higher VAT on luxury goods and premium services, plus capital gains tax on large share sales.

Government: Expects increased revenue for public services without overburdening vulnerable citizens.

Why reforms were needed:

Nigeria’s tax system was outdated, inefficient, and disproportionately harsh on low-income groups.

The low tax-to-GDP ratio (10%) limited funding for critical services like healthcare and infrastructure.

Overlapping taxes and complex rules deterred compliance, especially among small businesses and informal traders.

Public and expert reactionsPositive sentiment:

Small business owners welcome tax exemptions but seek clarity on enforcement to avoid unexpected levies.

Low-income earners appreciate relief on essentials but remain cautious about implementation.

Taiwo Oyedele, head of the Presidential Fiscal Policy and Tax Reform Committee, claims 90% public support, emphasising that success depends on awareness and trust.

The reforms align with Tinubu’s administration’s goal to reduce economic inequality and boost fiscal capacity without overburdening citizens.

By encouraging voluntary compliance and reducing reliance on loans, Nigeria aims to strengthen its economy and fund development projects.

These reforms mark a significant step toward a fairer, more efficient tax system, with a focus on supporting vulnerable groups while fostering economic growth.

However, their success hinges on transparent enforcement and public trust.

For further details, you can refer to official statements from the Nigerian government or credible news sources covering the reforms.

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Crime

Troops rescues 74 NYSC Members from suspected Boko Haram ambush in Borno

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Troops of the Joint Task Force (JTF), North East Operation Hadin Kai, have rescued 74 members of the National Youth Service Corps (NYSC) from a suspected abduction attempt by Boko Haram and ISWAP terrorists along the Buratai–Kamuya road in Borno State.

The incident occurred around 9:05 p.m. on Tuesday when the corps members — 36 males and 38 females — were stranded after their vehicles broke down near a known kidnapping hotspot.

According to military sources, a patrol team was swiftly deployed to the area after a CCTV monitoring system detected suspicious movement involving three buses.

“On reaching the location, troops found 74 corps members stranded after their vehicles developed mechanical faults. They were immediately rescued to prevent a likely abduction by terrorists operating in the area,” the report read.

The rescued corps members have been temporarily accommodated at the Buratai military base while arrangements are being made for their safe relocation.

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NMPRDA Urges Nigerians to Avoid Panic Buying of Petrol and Diesel This Season

In a statement issued on Thursday, George Ene-ita, the Director Public Affairs Department, NMDPRA assured Nigerians that there is adequate supply of petroleum products in the country, within the acceptable national sufficiency threshold.

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) urges Nigerians not to resort to panic buying of petroleum products as the implementation of the 15% ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.

In a statement issued on Thursday, George Ene-ita, the Director Public Affairs Department, NMDPRA assured Nigerians that there is adequate supply of petroleum products in the country, within the acceptable national sufficiency threshold.

The oil and gas regulatory body says petroleum products have been sourced from both local refineries and importation to ensure timely replenishment of stocks at storage depots and retail stations during this period.

The 15% ad-valorem import duty on imported Premium Motor Spirit and Diesel was approved by President Bola Tinubu to support local refineries and reduce Nigeria’s reliance on imported fuel.

The duty, set to take effect November, would have increased the landing cost of fuel by approximately ₦99.72 per litre.

Nigeria currently imports over 60 percent of its refined petroleum products, while less than 40 percent is sourced locally, almost solely from the Dangote refinery.

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Nduka Obaigbena to Launch Leekeeleekee, A New Media Platform in January

With Leekeeleekee, Obaigbena aims to revolutionize the media landscape by providing an African alternative in the global digital content ecosystem.

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Abuja, Nigeria — November 13, 2025:

Media icon and Chairman of THISDAY/ARISE Media Group, Prince Nduka Obaigbena, has announced the forthcoming launch of a revolutionary new media platform, Leekeeleekee, set to debut in January 2026.

The initiative, already attracting widespread commendation from media stakeholders across the Globe, is designed to challenge the dominance of U.S. and Chinese media conglomerates and establish Nigeria as a powerful voice in global content creation and distribution.

The announcement was made during Obaigbena’s keynote address at the 21st All Nigeria Editors Conference (ANEC) 2025, held at the Presidential Villa, Abuja.

In his address, Obaigbena underscored the pivotal role of the media in shaping democracy and national progress. Drawing on Nigeria’s rich media heritage, he paid tribute to three of the nation’s greatest media figures — Dr. Nnamdi Azikiwe, Chief Obafemi Awolowo, and President Bola Ahmed Tinubu — all of whom owned influential media organizations that contributed immensely to nation-building.

He observed that while all three were formidable media pioneers, only Tinubu went on to become President of Nigeria, illustrating the transformative power of media leadership.

“We must defend our democracy,” Obaigbena declared.

“If we fail to do so, the two years we have spent under this administration will be a waste. Democracy thrives only when the media is free, bold, and independent — when voices of truth are not silenced.”

With Leekeeleekee, Obaigbena aims to revolutionize the media landscape by providing an African alternative in the global digital content ecosystem.

The platform will empower creators, journalists, and storytellers across the continent through technology-driven distribution and monetization tools, ensuring that African stories are told by African voices — and heard across the world.

Obaigbena also used the occasion to make a clarion call for support for ongoing reforms to sustain economic growth in Nigeria, emphasizing that a strong economy is essential for a free and vibrant media sector.

“The time has come for Nigeria to take its rightful place in global media,” he said.

“Lekeleke will not just compete — it will lead. It will be Africa’s answer to the global dominance of American and Chinese media powerhouses.”

As anticipation builds ahead of its 2026 launch, Leekeeleekee is set to mark a new chapter in Africa’s media evolution — redefining how stories are created, distributed, and consumed on a global scale.

According to Amb. Cornell Udofia, PRO, Actors Guild of Nigeria (AGN) Lagos Chapter, and Founder/CEO of CMC Gladiators and CMC Entertainment, the vision of Leekeeleekee “reflects the rebirth of Africa’s media identity — a symbol of freedom, creativity, and courage.”

“Lekeleke will not just compete — it will lead. It will be Africa’s answer to the global dominance of American and Chinese media powerhouses.”

He commended Prince Obaigbena for his foresight, leadership, and unwavering commitment to empowering the next generation of African media professionals.

“Just like the white Lekeleke bird that soars gracefully across the skies,” Amb. Udofia said, “this platform will carry Nigeria’s stories to the world — pure, proud, and powerful.”

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