00:00President Bola Ahmed Tinubu has signed into law four major tax reform bills that promise to overhaul Nigeria's tax landscape, ushering in a new regime set to take effect from January 1st, 2026.
00:17The presidency says these laws are expected to transform tax administration, enhance government revenue, and create a more investor-friendly environment.
00:28At a brief but symbolic ceremony at the Presidential Villa on Thursday, President Tinubu gave his assent to the bills in the presence of high-ranking officials, including leaders of the National Assembly, selected governors, cabinet ministers, and key aides.
00:45The four bills include the Nigerian Tax Bill, the Nigerian Tax Administration Bill, the Nigerian Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
01:02Let's break it down bill by bill to understand what this means for Nigeria and Nigerians.
01:081. Nigeria Revenue Service Establishment Bill
01:13First, the Nigerian Revenue Service, or NRS, has officially replaced the Federal Inland Revenue Service, FIRS.
01:23But it's more than a name change.
01:27The NRS will now have the sole responsibility of collecting revenue previously handled by several other government bodies, including the Nigerian Customs Service, the Nigerian Port Authority, NPA, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, and NEMASA.
01:50The goal, to streamline revenue collection, reduce duplication, and plug financial leakages across federal agencies.
02:002. Nigeria Tax Administration Establishment Bill
02:05The second bill, which is the Nigerian Tax Administration Bill, focuses on how taxes are managed and administered.
02:14One major highlight, the creation of a new office of the tax on board.
02:20This office will ensure taxpayers are treated fairly and tax disputes are resolved within 14 days.
02:29Also under this bill, businesses can now request advanced rulings from the tax authorities and expect responses within 21 days.
02:39Tax refunds will be processed within 90 days, or 30 days of VAT refunds, with the options to upset against other taxes owed.
02:50There is a 6 years' status of limitation, and if the tax authority doesn't respond to objections within 90 days, the case is resolved in favor of the taxpayer.
03:03This particular bill is all about building trust, accountability, and faster responses to tax administration.
03:113. Nigeria Tax Bill
03:15The third bill to be signed is the Nigerian Tax Bill.
03:20This is where most of the financial reliefs and exemptions are captured.
03:24For homes and individuals, anyone earning 800,000 Naira or less per year is now fully exempt from the pay-as-you-earn pay tax.
03:37Personal income tax of 25% only applies to those earning 50 million Naira or more annually.
03:45Stamp duties no longer apply on rent below 10 million Naira.
03:500% VAT now applies to essentials like food, health care, education, electricity, baby products, and sanitary towels.
04:00Value-added tax exemptions also cover transportation, fuel, compressed natural gas, and renewable energy.
04:09For businesses, small businesses with annual turnover up to $50 million are exempt from company income tax.
04:19Medium and large companies will enjoy a reduced corporate income tax rate of 25% down from 30% starting 2026.
04:31Startups can now deduct business expenses incurred up to 6 years before they begin operations.
04:38Remote workers and digital nomads now have clearer tax rules.
04:44Digital access like cryptocurrency will now be taxed with no double taxation and losses can be deducted.
04:52And finally, this bill introduces a development levy of 2-4% to support agencies like the Nigerian Education Loan Fund,
05:02NEL Fund, Tertiary Education Trust Fund, TET Fund, National Information Technology Development Agency, NITDA,
05:11and National Agency for Science and Engineering Infrastructure, NASENI, helping fund education, innovation, and national development.
05:214. Joint Tax Board Establishment Bill
05:26The fourth bill, which is the Joint Tax Board Bill, strengthens the role of the Joint Tax Board,
05:35which now gets formal recognition and legal backing.
05:38Its mission is to coordinate tax policies across the federal, state, and local governments,
05:46ensuring uniformity, fairness, and cooperation.
05:50Key points include
05:52This bill ensures that all levels of government work together rather than against each other to achieve tax goals that benefit the entire country.
06:16As Nigeria prepares for this shift, all eyes will be on how efficiently the government rolls out this tax transformation
06:24and whether it can live up to the promises of boosting national income without stiffening enterprise.
