See the four benefits of the new tax laws signed by Tinubu

• Nigeria has a caller taxation law, signed by President Bola Tinubu, and it is acceptable to go effectual successful January 2026
• The caller taxation instrumentality highlights cardinal benefits for tiny businesses, states, individuals and households nationwide
• A taxation expert, Aderonke Atoyebi, lists 4 cardinal benefits and changes successful the caller laws, which volition payment Nigerians

President Bola Ahmed Tinubu has signed into instrumentality 4 large taxation betterment bills, marking a important displacement successful however taxes volition beryllium collected, paid, and administered successful Nigeria. 

The reforms, which instrumentality effect from January 1, 2026, purpose to simplify the taxation regime, trim aggregate taxation, and supply alleviation to low-income earners and tiny businesses.

Tax adept lists 4 large changes and benefits of the caller taxation laws. Credit: State House
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Unified taxation instrumentality ends aggregate levies

The 4 laws—Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board (Establishment) Act—are expected to standardise and modernise Nigeria’s taxation landscape.

According to Arabinrin Aderonke Atoyebi, Technical Assistant connected Broadcast Media to the Executive Chairman of the Federal Inland Revenue Service, the Nigerian Tax Act simplifies the strategy by combining respective outdated taxation laws. 

“Unnecessary taxes person been removed, and paying aggregate taxes connected the aforesaid income oregon goods is nary longer allowed,” she said.

All taxation authorities crossed federal, state, and section levels are present mandated to travel accordant rules nationwide. 

“Whether you unrecorded successful Lagos oregon anyplace else, taxation officers are required to use the aforesaid standards,” Atoyebi added, emphasising that the betterment would extremity confusing and overlapping taxation demands.

VAT exemptions connected essentials to easiness the outgo burden

While the VAT complaint remains astatine 7.5%, the instrumentality exempts oregon zero-rates indispensable goods and services similar food, rent, education, healthcare, and nationalist transport. 

Atoyebi noted that these changes were designed “to trim the outgo load connected Nigerians.”

Businesses volition present payment from a strengthened input VAT system, allowing them to assertion credits connected VAT already paid. 

“This prevents treble taxation and encourages concern growth,” she said.

Additionally, each taxpayers indispensable present get a Tax Identification Number (TIN) to amended transparency and easiness of compliance.

New gross bureau and entreaty tribunal established

Replacing the Federal Inland Revenue Service, the Nigeria Revenue Service (NRS) volition cod each national taxes, fees, and levies, and present integer platforms for registration, filing, and payments. 

President Bola Tinubu reportedly eased taxation laws for Nigerians. Credit: State House.
Source: Getty Images

“This modernisation is expected to trim delays, errors, and opportunities for corruption,” Atoyebi stated.

The Joint Revenue Board volition coordinate taxation policies crossed tiers of authorities and present azygous standards to trim conflict. 

Importantly, 2 caller institutions—the Tax Appeal Tribunal and the Office of the Tax Ombudsman—will guarantee payer rights are protected and disputes are reasonably resolved.

Low-income earners and SMEs get taxation relief

In 1 of the astir nonstop benefits to citizens, the reforms exempt individuals earning beneath ₦800,000 annually from idiosyncratic income tax. 

Small and medium-sized businesses volition besides spot simplified compliance procedures and reduced burdens.

“These measures purpose to enactment maturation and easiness the unit connected tiny traders and entrepreneurs,” Atoyebi affirmed.

With the implementation acceptable for January 2026, the authorities plans a nationwide consciousness run and capacity-building for taxation officials to guarantee a creaseless transition.

“The Renewed Hope medication belongs to each Nigerian,” she concluded. “So, congratulations to each Nigerians for stepping into this caller era. Together, we are gathering a Nigeria that works for everyone.”

9 cardinal taxation changes explained arsenic NRS replaces FIRS

Legit.ng earlier reported that President Bola Tinubu has recently signed the astir talked-about taxation betterment bills into law.

The signing ceremonial took spot astatine the statesmanlike villa connected Thursday, June 26.

The 4 bills, which person present been signed into law, are the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

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Source: Legit.ng