Knowledge Base
Nigeria Tax Act 2025 Guide
Plain-English explanations of Nigeria's most significant tax reform in decades
What is the NTA 2025?
The Nigeria Tax Act 2025 is the most comprehensive tax reform in Nigeria's history, signed into law on 26 June 2025 by President Bola Tinubu. It consolidates over 60 different tax statutes into fewer than 10 laws.
The reform was designed to simplify compliance, reduce the burden on low-income earners and small businesses, and broaden the tax base.
Reform Timeline
July 2023
Presidential Committee on Fiscal Policy and Tax Reforms established under Taiwo Oyedele
Oct 2024
Four Tax Reform Bills submitted to the National Assembly
Nov 2024
Bills passed by the Senate after extensive debate and amendments
Jun 26, 2025
Nigeria Tax Act 2025 signed into law by President Bola Tinubu
Jan 1, 2026
New tax brackets, SME exemptions, and Development Levy take effect
Key Numbers at a Glance
Tax-free threshold
Up from ₦300K
₦800K/yr
SME CIT exemption
Annual turnover
≤ ₦50M
Top PIT rate
Above ₦50M income
25%
Development Levy
Replaces 3 levies
4%
VAT rate
Unchanged
7.5%
VAT registration
Annual taxable supplies
₦25M
Disclaimer: This guide is produced by TaxNaira Limited (“TaxNaira”) for informational purposes only. Tax laws are complex and individual circumstances vary. Always consult a qualified Nigerian tax professional (chartered accountant or tax consultant) for advice specific to your situation. Information is based on publicly available sources including NRS, KPMG, EY, PwC, and Stransact analyses of the Nigeria Tax Act 2025.