Tinubu Signs Tax Reform Law: Major Changes for Nigerians and Businesses
President Bola Ahmed Tinubu has signed the Tax Reform Bills into law, marking a major shift in Nigeria’s tax structure for 2025. The reforms offer tax relief to low-income earners and full exemptions for small businesses, while unifying revenue collection under the newly renamed Nigeria Revenue Service (NRS).
Top Highlights of the New Tax Law
- FIRS renamed to Nigeria Revenue Service (NRS)
- Tax exemption for those earning ₦800,000 or less annually
- 25% tax only on personal incomes over ₦50 million
- Small businesses are fully exempted from income tax
- Corporate tax for medium/large firms drops to 25% in 2026
- No VAT on essentials: food, school fees, electricity, medicine
- VAT remains 7.5%, no rate increases
- New 2%–4% Development Levy for national innovation and education funds
This new tax law aims to promote fairness, reduce poverty, and simplify Nigeria’s tax system. Businesses and citizens are encouraged to familiarize themselves with the changes as implementation begins.
