Daily Tax News Summary
President Bola Tinubu has enacted four sweeping tax reform laws, replacing the Federal Inland Revenue Service with the Nigeria Revenue Service, keeping VAT at 7.5 %, and expanding exemptions for low-income earners. The measures, effective 1 January 2026, aim to streamline more than 50 taxes, boost efficiency, and leave “more money in the hands of the ordinary Nigerian,” officials said. Federal agencies that once collected taxes must now cede that role to the new NRS.
Summary for Taxpayers
- Low-income households earning up to ₦250,000 a month are exempt from personal income tax (Pulse Nigeria).
- The tax-free annual income threshold rises to ₦800,000 (FIJ NG).
- VAT stays at 7.5 % and Corporate Income Tax at 30 % (Daily Trust).
- Essential goods and services—including food, health, education, transport, and housing—carry zero-rate VAT (Punch Newspapers, 26 Jun 2025).
- All federally chargeable taxes will be collected solely by the new Nigeria Revenue Service from 2026 (Punch Newspapers, 27 Jun 2025).
Key Developments
Nigeria's tax reform: What to know as President Bola Tinubu signs new laws
- Source: BBC News (https://www.bbc.com/news/articles/czdvnmz0j9go)
- Key Facts:
- Four acts—the Nigeria Tax Act, Tax Administration Act, Nigeria Revenue Service Act, and Joint Revenue Board Act—were signed 12 hours ago.
- More than 50 “small, overlapping taxes” are eliminated.
- Rent relief of ₦200,000 applies to workers earning up to ₦1 million a year.
- Quote: “The tax reforms will protect low-income households and support workers by expanding their disposable income,” President Tinubu said.
Federal revenue agencies face shake-up as Tinubu signs tax bills
- Source: Punch Newspapers (https://punchng.com/federal-revenue-agencies-face-shake-up-as-tinubu-signs-tax-bills/)
- Key Facts:
- Nigeria Customs Service, NUPRC, and MDAs “may cede tax collection” to NRS.
- New VAT-sharing formula starts 1 January 2026.
- Tinubu called the signing “a turning point in the nation’s fiscal direction.”
- Quote: “We have opened the door for new economic and business opportunities,” Tinubu said at the State House.
FISCAL POLICY: VAT remains 7.5%, CIT 30% as Tinubu signs tax reform bills
- Source: Daily Trust (https://dailytrust.com/fiscal-policy-vat-remains-7-5-cit-30-as-tinubu-signs-tax-reform-bills/)
- Key Facts:
- No increase to VAT or Corporate Income Tax rates.
- Tinubu described the laws as “pivotal to the country’s prosperity.”
- Quote: “What we did a few minutes ago is the way forward for our country’s prosperity,” the president stated.
Cautious optimism as Nigeria treads new tax terrain from January 2026
- Source: The Guardian Nigeria News (https://guardian.ng/news/cautious-optimism-as-nigeria-treads-new-tax-terrain-from-january-2026/)
- Key Facts:
- Six-month transition period granted for systems readjustment.
- FIRS Chairman Zacch Adedeji called the move “a dream come true.”
- Businesses expect relief from “multiple taxation regimes” at sub-national levels.
- Quote: Adedeji hailed Tinubu’s “vision, courage, and commitment to modernising the tax system.”
Tax reform bills: FIRS now Nigeria Revenue Service
- Source: Daily Post Nigeria
- Key Facts:
- FIRS is repealed; NRS becomes “more autonomous and performance-driven.”
- Implementation date is 1 January 2026.
- Quote: Tinubu said the reforms would deliver “the first major, pro-people tax cuts and relief for low-income earners.”
Tax Law: Households earning ₦250k considered poor, exempt from taxes - Oyedele
- Source: Pulse Nigeria
- Key Facts:
- Committee chairman Taiwo Oyedele defined households earning ≤ ₦250k/month as “poor.”
- Such households face zero personal income tax under the new rules.
- Quote: Oyedele said the redefinition was essential “to determine if they're taxable.”
FACTS AND FIGURES: What Nigerians Will Pay per Wage Under Tax Laws Tinubu Just Signed
- Source: FIJ NG
- Key Facts:
- Tax-exempt threshold raised to ₦800,000 yearly.
- Income between ₦800k and ₦3 million taxed at 15 % on the amount above ₦800k.
- Quote: FIJ noted the reforms “will lower the tax burden for low-income earners.”
Inside di new 'Nigeria Tax Bill' wey Tinubu sign into law
- Source: BBC Pidgin
- Key Facts:
- The Nigeria Tax Bill aims to “reduce the multiplicity of taxes and eliminate duplication.”
- Presidential spokesman Bayo Onanuga said the act enhances the ease of doing business.
- Quote: Tinubu posted that the regime “go dey fair, transparent, and fit for a modern, ambitious Nigeria.”
New tax laws’ll ease burden on Nigeria’s poor – Oyedele
- Source: Punch Newspapers
- Key Facts:
- “More than 1/3 of workers” will be exempt from Pay-As-You-Earn (PAYE) tax.
- Zero-rate VAT now applies to food, education, medical care, transport, and housing.
- Quote: “We should see prices of those items come down,” Oyedele said.
Why Tinubu Replaced FIRS with NRS in Sweeping Tax System Overhaul
- Source: Economic Confidential
- Key Facts:
- NRS will also collect non-tax revenue and use technology to improve compliance.
- Tinubu said the overhaul was needed to create an “investor-friendly tax regime.”
- Quote: “These bills reflect our unwavering commitment to creating a simplified, coherent, and efficient tax system,” the president noted.
Prepared by MyTax - mytax.com.ng