Nano Traders Earning N12m or Less Now Tax-Exempt, Says JRB

The Joint Revenue Board (JRB) has said small businesses with annual turnover of N12 million or less are now exempt from tax, as it reported early gains from the new tax administration framework introduced in January 2026.

The board also said a worker with N20 million in chargeable income now pays N962,000 less tax a year under the new personal income tax bands.

The executive secretary of the JRB, Olusegun Adesokan, disclosed this at a media briefing on the board’s role in revenue administration in Abuja on Wednesday.
Presenting a paper titled “Reform in Motion: Early Outcomes from Nigeria’s New Tax Administration Framework,” Adesokan said the reforms were already easing the burden on small traders and individuals.

The exemption for nano traders comes under the Presumptive Tax Regulations 2026, which the JRB described as a simpler, uniform framework for taxing the informal sector.

The board listed specific businesses covered by the exemption. They include roadside food vendors, mobile barbers, manual tailors, local cobblers, newspaper vendors, wheelbarrow pushers, car wash boys and phone charging stations.

The list is not exhaustive.

The JRB said a Tax Exemption Certificate will be issued to nano businesses free of charge.

On personal income tax, the JRB said the regime that took effect in January 2026 charges nothing on the first N800,000 of chargeable income. The next N2.2 million is taxed at 15 per cent, the next N9 million at 18 per cent, the next N13 million at 21 per cent and the next N25 million at 23 per cent. Income above N50 million is taxed at 25 per cent.

Before January 2026, the first N300,000 was taxed at 7 per cent, and rates climbed through 11, 15, 19 and 21 per cent to 24 per cent on income above N3.2 million.

To show the effect, the JRB compared a taxpayer with N20 million in chargeable income under both regimes.

Under the old bands, the person paid N4,592,000 a year, or N382,666.67 a month, and took home N1,284,000 monthly. Under the new bands, annual tax is N3,630,000, or N302,500 a month, and monthly take-home pay rises to N1,364,167.

That is an extra N80,167 a month, or about N962,000 over a year, the board said.

The JRB also compared Nigeria’s income tax rates with those of other African countries, citing PwC’s Worldwide Tax Summaries. Nigeria’s range of 0 to 25 per cent compares with 0 to 35 per cent in Ghana, 10 to 35 per cent in Kenya, 0 to 37 per cent in Morocco and 0 to 35 per cent in Ethiopia. South Africa’s range is 18 to 45 per cent plus a fixed tax amount.

The JRB said states’ internally generated revenue (IGR) grew by 27 per cent half-year-on-year, based on data submitted by 23 states.

It also said it has assigned more than 100 million Tax IDs. Individuals can retrieve theirs with their National Identification Number (NIN) at taxid.jrb.gov.ng or taxid.nrs.gov.ng. Registered businesses can use their Corporate Affairs Commission (CAC) registration number.

100 taxes cut to nine

At the sub-national level, the board said nine harmonised tax and levy heads now replace more than 100 fragmented taxes and levies. These are income tax, stamp duties, property tax, road tax, haulage levy, economic development levy, harmonised levy, user charge and daily ticket.

Twenty-one states have passed the Model Harmonised Taxes and Levies Law. They are Kebbi, Kaduna, Zamfara, Ekiti, Enugu, Abia, Anambra, Gombe, Adamawa, Yobe, Borno, Niger, Plateau, Benue, Kogi, Kwara, Nasarawa, Akwa Ibom, Bayelsa, Delta and Ondo.

The JRB said it banned the sale of stickers and emblems nationwide at its 158th meeting. It said motorists will no longer have to buy “irrelevant documents” before moving goods from one part of the country to another, which it expects to reduce the cost of farm produce.

The board also said it has zero tolerance for roadblocks and cash collection. This is backed by the model harmonised law and the Presumptive Tax Regulations 2026. The JRB is working with the Nigeria Police Force (NPF) on the matter, and enforcement is to begin soon.

Ombud, guidelines and training

The JRB said an independent Office of the Tax Ombud is now operational. The office is to serve as an impartial arbiter on complaints about tax, levies, regulatory fees, customs duty and excise matters. It will also resolve complaints against tax officials through mediation or conciliation.

The board said it has issued guidelines on personal income tax administration, the implementation of sub-national harmonised tax rates and the taxation of winnings. It has also trained revenue officers and other stakeholders on the new laws and processes, including the taxation of the digital economy. It added that states are already using JRB-supported technology.

Government backing

The JRB said the National Economic Council (NEC) has approved a 90-day economic plan to reduce the cost of living, with tax harmonisation among its measures. It said this shows growing commitment at the highest levels of government to simplify the tax system and reduce compliance burdens.

In his closing note, Adesokan said the success of tax reform will be measured “not by the taxes we impose, but by the businesses we enable to grow, the jobs we enable to create, and the prosperity we enable to share.”