Tax reform — the four Acts effective 1 January 2026
Figures below refer to 1 January 2026 unless stated otherwise.
The claim
Four tax Acts were signed on 26 June 2025 and took effect on 1 January 2026: the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Act and the Joint Revenue Board Act. They emerged from the Presidential Committee on Fiscal Policy and Tax Reforms chaired by Taiwo Oyedele.
Figures
Key provisions: PAYE exemption for annual income below ₦800,000, top personal rate 25%. VAT remains 7.5%, with zero-rating expanded to basic food, medicines and education materials, and input VAT now recoverable on services and fixed assets. Companies with turnover at or below ₦100m and fixed assets at or below ₦250m are exempt from company income tax, capital gains tax and the development levy. A single 4% Development Levy replaces the TET, IT, NASENI and PTF levies. Corporate capital gains tax rises from 10% to 30%. A 15% minimum effective tax rate applies to large multinationals (€750m+) and firms with ₦50bn+ turnover. Job-loss compensation exemption rises from ₦10m to ₦50m.
The counter-argument
On 26 July 2026 Oyedele inaugurated a committee to produce a 2026 VAT Modification Order within six weeks, reviewing exemptions and zero-rated supplies. Some of the zero-rating may move. Say so rather than presenting the January position as permanent.
Sources
- PwC Nigeria — the Nigerian tax reform Actspwc.com
- ThisDay — VAT Modification Order committeethisdaylive.com