President Bola Tinubu signed the new tax bills into law on Thursday, and the content of the new laws is so far-reaching in their impact that every business registered in Nigeria and all citizens should familiarise themselves with the pieces of legislation.
The new laws are not just for lawyers but also ordinary Nigerians. They are far-reaching and cover small businesses, salary earners and even side hustle and gig workers.
Read also: New tax laws take effect January 1, 2026 — FG
Here’s how the new tax laws affect your pocket in plain Nigerian English.
Good news first
If your business earns ₦50 million or less in a year, you no longer have to pay Company Income Tax (CIT). That’s it, you are free from the taxman’s trouble.
Before now, the cut-off was ₦25m.
So that foodstuff shop, POS woman, or tailoring hustle just got a big tax break.
Salary earners: Under the laws, if you earn ₦83k/month (₦1m/year) or less, you do not pay PAYE tax. Before now, even small salaries were taxed.
And if you earn big, you have not been left out.
Because new personal reliefs mean that if you earn ₦1.7m/month or less, your PAYE tax will be lower.
It means that your take-home go increases. More money for savings or jollof. Your choice.
Read also: Nigeria’s tax reforms set to unlock billions in investment, revenue.
Just got laid off or retired with a severance package?
Here’s hope: The first ₦50 million of your termination benefits is now 100% tax-free.
That’s not small change. That’s dignity in hardship.
Let’s talk about VAT. You shouldn’t see VAT again on basic food items, baby products, school fees, electricity, or hospital bills. Groceries from your local supermarket? No VAT. School fees? No VAT.
This matters a lot for families.
Read also: Tinubu says Nigeria’s tax-to-GDP ratio now 13.5%, applauds Oyedele’s efforts
Now to the remote workers and digital hustlers:
You work from Lagos, earn $3,000/month from a US company?
The new law says:
✔️ You must register with the state tax authority
✔️ Declare your income in Naira
✔️ Pay tax like every Nigerian earner
You may want to ask, “Declare what? Who’s going to know?”
Well… if your domiciliary account is linked to your BVN or Nigerian bank, your foreign inflow is already visible.
FIRS and CBN can now track you. Quietly. And thanks to international tax treaties, even your US or UK employer may report income paid to you. If your client or boss is in a “compliant country,” Nigeria can get your income info automatically. The days of “nobody will know” are counting down.
The new tax law is not just about control.
The Nigeria Tax Bill (Ease of Doing Business) wants to reduce the wahala of taxation. Instead of chasing 15 different taxes, everything will now be simpler, unified, and more digital.
There’s also a new Nigeria Revenue Service (NRS) to replace FIRS. More autonomy, more transparency, and they are now collecting non-tax revenues too. Plus, a Joint Revenue Board is coming, so state and federal tax people won’t stress you twice over the same thing.
And if they do not behave? There will now be a Tax Appeal Tribunal and a Tax Ombudsman. No more silence or oppression, you can now report, appeal, and get heard.
But note: All this will take effect in 2026. So you have time to prepare.
