The New Chapter in Nigeria’s Tax Story

Nigeria will begin 2026 with its biggest tax overhaul in decades. But what exactly is changing and will the new tax regime worsen or improve Nigeria’s economic and fiscal future?

On 26 June 2025, President Bola Ahmed Tinubu signed into law a series of fiscal bills that represent the most ambitious tax reform in Nigeria’s recent history. Collectively referred to as the Tax Reform Acts, these include the Nigeria Tax Act (NTA), the Nigeria Tax Administration Act, the Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act. They are set to take effect from 1 January 2026 and aim to significantly transform the country’s tax system.

Central to this reform is the NTA, a law that amends, repeals (as applicable) and consolidates existing tax laws such as the Companies Income Tax Act, the Value Added Tax Act, the Personal Income Tax Act, and the Capital Gains Tax Act. The NTA represents an ambitious endeavour to recalibrate Nigeria’s fiscal landscape, close loopholes that have long enabled significant tax leakages, and rebalance the system to ensure that corporate giants bear an equitable share of the burden. At the same time, it introduces modest reliefs aimed at shielding low-income earners and small and medium enterprises (SMEs) from excessive strain. Taken together, these reforms chart a new course for how the state interacts with its citizens and businesses, and how it intends to shape the future of public revenue. Still, a central tension remains: can this sweeping overhaul truly catalyze growth and efficiency, or will it deepen existing pressures in an already fragile economic environment?