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by admin
- September 8, 2025
- 0 Comments
Nigeria just witnessed one of its most ambitious tax overhauls in decades. On June 26, 2025, President Bola Tinubu signed into law four major tax reform bills designed to simplify our tax system, ease the burden on everyday Nigerians, and attract more investments.
Key Highlights You Should Know
- VAT stays at 7.5% – with big exemptions for essentials like food, healthcare, education, rent, and electricity.
- Personal Income Tax Relief – workers earning below ₦30,000 monthly are now tax-free, while households earning less than ₦1 million a year get a ₦200,000 deduction.
- Corporate Tax Support – small businesses making under ₦50 million annually won’t pay Company Income Tax. Bigger firms will see their rates gradually reduced from 30% to 25% by 2026.
- Simplified Tax Codes – a new Nigeria Revenue Service replaces the old FIRS, promising more efficiency, transparency, and better use of technology.
- Fairer Revenue Sharing – VAT revenue is now shared more equitably between states, with a focus on population and origin.
Why This Matters
For everyday Nigerians, this means more money in your pocket and fewer confusing levies. For small businesses, it’s a chance to reinvest earnings, expand, and create jobs. For the country, it signals a move toward a modern, investor-friendly tax structure that could boost growth if implemented transparently.
The Challenge Ahead
The big question is implementation. Will the new Nigeria Revenue Service deliver on its promise of fairness and efficiency? Will state governments maximize their share of VAT to improve local economies? Trust, transparency, and accountability will be the true test.
Final Word
Tinubu’s tax reform is bold and potentially transformative. If executed well, it could ease financial pressure on households and empower businesses to thrive. But if poorly managed, it risks becoming another missed opportunity.
