Federal Government Gazettes New Tax Laws, Exempts Small Businesses From Corporate Tax

The Federal Government has officially gazetted Nigeria’s new tax reform laws following President Bola Tinubu’s assent to the legislations on June 26, 2025.

A statement signed by the Personal Assistant on Special Duties to the President, Kamorudeen Yusuf, on Wednesday, confirmed the publication of the four legislations: the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025, and the Joint Revenue Board (Establishment) Act 2025.

According to the gazette, “Small businesses with turnover under ₦100m and assets below ₦250m are exempted from corporate tax.” It further noted that “Corporate tax rate for large firms may be cut from 30% to 25% at the President’s discretion.”

Other key provisions include, Top-up tax thresholds of ₦50bn for local firms and €750m for multinationals, 5% annual tax credit for eligible priority-sector projects and permission for companies transacting in foreign currency to pay taxes in naira at official exchange rates.

The government clarified that the Nigeria Tax Act and Nigeria Tax Administration Act will take effect from January 1, 2026, while the Nigeria Revenue Service Act and the Joint Revenue Board Act became effective immediately on June 26, 2025.

The statement emphasised that the reforms are designed to “simplify Nigeria’s tax system, support small businesses, attract investment, and strengthen fiscal stability, aligning with President Tinubu’s Renewed Hope Agenda to diversify revenue away from oil.”