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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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Atiku’s Media Aide, Ifeanyi Izeze is Dead

The media office said that further details about Izeze’s burial would be made public by his family.

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Atiku Media Office has announced the death of Ifeanyi Izeze, a member of the media team of former Vice President Atiku Abubakar.

In the statement , Izeze a prominent and pioneer member of the ex-VP’s media team died on Sunday.

“Ifeanyi Izeze joined the media team of the then Vice President Atiku Abubakar in 2006, from Aluminium Smelter Company of Nigeria (ALSCON), Ikot-Abasi as the Office Manager.

He brought to bear on the work of the media team at that critical stage of Atiku’s political career, his wealth of experience in the media, Niger Delta and Nigeria’s oil and gas industry.

Izeze trained as a geologist at the University of Port Harcourt up to postgraduate level, but carved a niche in journalism where he reported and wrote extensively on oil and gas industry in Nigeria for many years in the defunct Sunray, Anchor, and NewAge newspapers among others, before he joined ALSCON.

In the Atiku Media Office, Ifeanyi was a senior member of the team and its pioneer Office Manager who helped shape the campaign policies of the Atiku Presidential Campaigns in the Niger Delta, particularly in the oil and gas sectors,” the statement further reads.

Atiku Media Office described the deceased as a man with a prodigious sense of humour and a born-again Christian of the Christ Embassy.

The media office said that further details about Izeze’s burial would be made public by his family.

He left behind children, grandchildren and an elder and only surviving brother, Pastor Emeka Izeze of the Guardian Newspapers fame

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Tinubu Pledges Support for Nigerian Media in Battle Against Big Tech.

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...Vows Tariff Relief on Newsprint and Equipment. President Bola Ahmed Tinubu has thrown the full weight of his administration behind Nigeria’s media industry in its escalating fight against Big Tech’s dominance, unfair content usage, and crippling economic pressures, while promising to slash or eliminate import tariffs on essential production materials.

Speaking at a high-level interfaith dinner held at the State House on Friday, March 13, 2026, the President described the Nigerian press as an “indispensable partner” in the country’s drive for economic recovery, democratic consolidation, and national unity.

“We will help dismantle the fiscal hurdles and digital cannibalisation currently threatening the survival of the press,” Tinubu declared, assuring the delegation that his government is actively reviewing the national tariff exemption list.

Among the items under consideration for zero or reduced duty (currently 5–10%) are newsprint, printing plates, chemicals, and broadcast equipment for radio and television—materials the media sector has long argued should receive the same preferential treatment as educational and research imports.

“You have the government’s full support, because we know how important your work is to the sustenance of democracy,” the President told representatives of the Nigerian Press Organisation (NPO) and other leading industry bodies.

The closed-door meeting brought together a powerful cross-section of Nigeria’s media leadership, including:

– Lady Maiden Alex-Ibru, NPO President and Publisher of The Guardian

– Frank Aigbogun, NPAN Deputy President and Publisher of BusinessDay (who delivered the industry’s joint address)

– Aremo Olusegun Osoba (Vanguard)

– Sam Amuka (THISDAY/ARISE News)

– Prince Nduka Obaigbena (Channels Television)

– Dr John Momoh, Director-General of the Nigerian Television Authority (NTA)

– Leaders of the Nigerian Guild of Editors, Guild of Corporate Online Publishers (GOCOP), and Nigeria Union of Journalists (NUJ), among others.

In his presentation, Aigbogun accused unnamed global tech platforms widely understood to include Google and Meta of systematically “scraping” Nigerian journalistic content, frequently breaching paywalls, to train artificial intelligence models without compensation.

He claimed these practices are depriving local media houses of up to 70% of their legitimate advertising and syndication revenue losses running into hundreds of millions of dollars annually while triggering widespread job losses across newsrooms.

Aigbogun called on the President to instruct the Federal Competition and Consumer Protection Commission (FCCPC) to launch a formal investigation, in partnership with media stakeholders, into Big Tech’s alleged anti-competitive behaviour.

Minister of Information and National Orientation, Alhaji Mohammed Idris, told the gathering that preliminary engagements with major tech companies, including Meta and Google, are already in progress.

“The government will not allow anybody to come here, reap from our economy, and go away without giving back,” Idris said firmly.Vice President Kashim Shettima, together with several senior presidential aides, also attended the event.

The State House meeting follows an earlier January 2026 letter and public statement from the NPO highlighting the existential threat posed by unregulated digital platforms to Nigeria’s independent media ecosystem.

Industry observers view the President’s commitments as a potential turning point, offering both short-term cost relief through tariff adjustments and longer-term policy backing in the global push for fair revenue sharing between traditional media and dominant tech intermediaries.

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Senate confirms Oyedele as minister

During the screening, Oyedele proffered solutions to getting out of the various economic issues in the country.

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The Senate has confirmed the nomination of Taiwo Oyedele as Minister of State for Finance.

His confirmation comes after two hours of screening as lawmakers grilled him on various aspects of the economy.

Oyedele’s screening followed a motion moved by Opeyemi Bamidele, the Senate leader, after he called for the suspension of the Senate rule to allow strangers to come into the chamber.

During the screening, Oyedele proffered solutions to getting out of the various economic issues in the country.

Oyedele was escorted to the chamber by Bashir Lado, the Special Adviser to the President on the National Assembly ( Senate), alongside others.

His screening followed President Bola Tinubu’s letter to the Senate on Tuesday, requesting his confirmation as a minister.

Tinubu had, on March 3, nominated Oyedele, who currently serves as chairman of the presidential committee on fiscal policy and tax reforms, as Minister of State for Finance.

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