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Legislative bills

Nigeria Signs Landmark Tax Reforms into Law

Strategic Insights

— 1 min read

President Bola Tinubu has signed four major tax reform bills into law, marking a significant shift in Nigeria's economic governance. The reforms aim to modernize the tax system, enhance revenue generation, and promote accountability across all tiers of government.

Key Takeaways:

  • The Nigeria Tax Bill (Fair Taxation) introduces a new exemption that shields minimum wage earners from personal income tax, benefiting millions of low-income Nigerians.
  • The Nigeria Tax Administration Bill creates a new unified tax authority to replace multiple federal tax collection bodies, reducing the cost of tax compliance and encouraging formalization of businesses.
  • The Joint Revenue Board (Establishment) Bill aims to streamline intergovernmental coordination between federal, state, and local revenue agencies, addressing redundancy and corruption in the tax system.
  • The reforms include targeted relief for small businesses, working families, and low-income earners, with the goal of easing the economic burdens of ordinary Nigerians.
  • The new tax framework is expected to be implemented in phases, with accompanying regulations and institutional restructuring to follow.
  • President Tinubu praised the consensus-building efforts that led to the passage of the harmonized versions of the bills, thanking members of the National Assembly, the Presidential Fiscal Policy and Tax Reform Committee, and the governor for their input and support.

Statistics:

  • 4 major tax reform bills were signed into law by President Bola Tinubu.
  • 7.5% VAT rate to be retained in the new tax framework.
  • 2 new agencies, the Nigeria Revenue Service and the Joint Revenue Board, to be established to oversee tax administration and intergovernmental coordination.
  • 1 million low-income Nigerians expected to benefit from the new exemption on personal income tax.
  • 5 years projected timeline for the implementation of the new tax framework.

Sources:

  • Presidency statement posted on President Bola Tinubu's official X handle on Thursday signaling the signing of the four landmark tax reform bills.
  • Nigeria Tax Administration Bill, 2025, passed by the National Assembly in May 2025.
  • Joint Revenue Board (Establishment) Bill, 2025, passed by the National Assembly in May 2025.
  • Nigeria Revenue Service (Establishment) Bill, 2025, passed by the National Assembly in May 2025.
  • Presidency statement on the implementation of the new tax framework.

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