📢 REMINDER: Major Changes in Nigeria’s Tax System – Here’s What You Need to Know!

President Bola Ahmed Tinubu has officially signed the new Tax Reform Bills into law, introducing significant updates that directly affect you as a Nigerian citizen. Here's a simplified breakdown of the key changes:

1. New Name, Same Role:
2. The Federal Inland Revenue Service (FIRS) is now called the Nigeria Revenue Service (NRS).
3. Centralized Tax Collection:
4. NRS will now take charge of collecting revenues that were previously handled by agencies like Nigeria Customs, NUPRC, NPA, and NIMASA.
5. Relief for Low-Income Earners:
6. If you earn ₦800,000 or less per year, you are now exempted from paying income tax.
7. Tax for High-Income Earners:
8. Individuals earning above ₦50 million annually will now pay a 25% personal income tax.
9. Small Businesses Benefit:
10. Small business owners are now fully exempted from paying income tax.
11. Corporate Tax Reduction Coming:
12. Starting from 2026, medium and large companies will see a cut in company income tax — from 30% to 25%.
13. VAT Exemptions on Essentials:
14. Essential goods and services such as food, medical care, pharmaceuticals, school fees, and electricity are VAT-free.
15. No Tax Increase:
16. The VAT rate remains at 7.5%, and corporate tax stays at 30% — there is no increase.
17. New Development Levy Introduced:
18. A 2%–4% Development Levy will now go toward funding key national institutions like NELFUND, TETFund, NITDA, and NASENI.

Take Note: These changes are designed to ease the burden on lower-income earners and small businesses while streamlining tax collection and boosting national development.

Stay informed, and be sure to adjust your personal or business finances accordingly.

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