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Tax law

Nigeria's Tax Reforms Acts 2025 Mark a Significant Milestone in Economic Development

Strategic Insights

— 1 min read

Dr. Kazeem Kolawole Raji, the Director General of the National Board for Technology Incubation (NBTI), has welcomed the signing of the Tax Reforms Acts 2025 by President Bola Tinubu. The newly assented laws, which include the Nigeria Tax Act (NTA), the Nigeria Tax Administration Act (NTAA), the Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA), are expected to empower indigenous innovation and provide critical support to Nigeria's Micro, Small, and Medium-sized Enterprises (MSMEs) and tech start-ups. The reforms are designed to create a just, business-friendly, and digitally enabled tax environment, enabling fair taxation, inclusive growth, and indigenous development.

Key Takeaways:

  • The Nigeria Tax Reform Acts 2025 include the Nigeria Tax Act (NTA), the Nigeria Tax Administration Act (NTAA), the Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA), which were signed into law by President Bola Tinubu.
  • The reforms have exempted small firms with a turnover below N100 million from key taxes and offered increased capital gains tax for corporate bodies from 10% to 30% to ensure a fair and balanced contribution from larger players.
  • The Unified Development Levy, a consolidated 4% levy, has been introduced to fund essential development agencies such as TETFUND, Nigerian Education Loan, NASENI, NBTI, NITDA, Defence and Security Infrastructure Fund, and National Cybersecurity Fund.
  • The new tax laws provide a Progressive Personal Income Tax, giving more relief for the poor, and a just contribution from the wealthy, as low-income earners below N800,000 annual income are now completely exempted from tax.
  • The reforms have also introduced a minimum effective tax rate for multinationals, a 15% minimum tax to ensure that Nigeria earns its fair share from global commerce.

Statistics:

  • The Unified Development Levy is a consolidated 4% levy.
  • The new tax laws have exempted small firms with a turnover below N100 million from key taxes.
  • The capital gains tax for corporate bodies has been increased from 10% to 30% to ensure a fair and balanced contribution from larger players.
  • The minimum effective tax rate for multinationals is 15% minimum tax.
  • Low-income earners below N800,000 annual income are now completely exempted from tax.

Sources:

  • Interview with Dr. Kazeem Kolawole Raji, Director General of the National Board for Technology Incubation (NBTI).
  • Press Release: President Tinubu Signs Tax Reforms Acts 2025 into Law.
  • National Board for Technology Incubation (NBTI) Press Release: NBTI Welcomes Signing of Tax Reforms Acts 2025.

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