11 Major Tax Changes Nigerians Will Face Starting January 2026

• 11 Major Tax Changes Nigerians Will Face Starting January 2026

• Exemptions target low earners, small businesses, and key sectors.

• Minister Edun says changes boost spending power and investor confidence.

Nigeria is preparing for a sweeping tax reform as new laws take effect on January 1, 2026.

EDITOR’S PICKS 

• How ASUU-FG 2009 Agreement Remains A Headache 16 Years Later
• PDP May Field Peter Obi, Jonathan in 2027 – Senator Moro
• Hon. Tobun Unveils Batik Kampala Training for Epe Constituency 1 Residents

EKO HOT BLOG reports that the reforms, contained in the Nigeria Tax Act (NTA), the Nigeria Tax Administration Act (NTAA), and the Nigeria Revenue Service Act (NRSA), are expected to simplify taxation, expand the tax net, and boost the economy.

Key highlights of the new tax laws:

1. Consolidation of Laws: Several old tax regulations have been merged into a single regime to reduce confusion and improve clarity for taxpayers.

2. Personal Income Relief: Nigerians earning less than ₦800,000 annually will now be exempted from paying personal income tax, providing relief for low-income earners.

3. Small Business Exemption: Businesses with an annual turnover below ₦100 million will not pay company income tax, capital gains tax, or other levies.

4. VAT Relief: Value Added Tax will no longer apply on essential goods and services such as food, education, books, and public transportation.

5. Higher Capital Gains Tax: The capital gains tax rate for companies has been raised from 10 percent to 30 percent, targeting larger corporations.

6. Digital Economy Tax: Profits from digital activities and virtual assets will now be taxed, bringing online businesses into the formal tax net.

7. Development Levy: A new 4 percent development levy will be charged on company profits, but small businesses and non-resident companies are exempt.

8. Agriculture Incentives: New agricultural startups will benefit from a five-year tax holiday, with extended incentives for priority sectors.

9. Export Relief: Exporters will enjoy tax exemptions on repatriated foreign earnings to encourage foreign exchange inflow.

10. Single Revenue Agency: The Nigeria Revenue Service will now serve as the sole federal tax agency for easier administration.

11. Tax Ombudsman: A new office will handle complaints and disputes between taxpayers and authorities, ensuring fairness.

Finance and Economy Minister Wale Edun said the reforms will increase citizens’ purchasing power while making Nigeria more attractive to investors.

FURTHER READING

• NRC Suspends Abuja Kaduna Train Operations Indefinitely After Derailment
• Two Ondo PDP Lawmakers Defect to APC
• Tinubu Pledges Stable Environment for Local, Foreign Investors