NEW TAX LAWS: 10 SHOCKING FACTS EVERY NIGERIAN TAXPAYER IS IGNORING!
NEW TAX LAWS: 10 SHOCKING FACTS EVERY NIGERIAN TAXPAYER IS IGNORING!
• New tax laws took effect January 1, 2026, designed to reduce tax burden, simplify compliance, and make the system fairer for ordinary Nigerians.
• VAT is removed from basic needs like food, healthcare, and education, while the VAT rate stays at 7.5% and “hidden VAT” in prices will reduce as businesses can now claim more input VAT.
• Small businesses with turnover of ₦100m or less are exempt from Companies Income Tax, VAT, Withholding Tax, Capital Gains Tax, and Development Levy — meaning over 90% of micro and small firms will pay little or no major taxes.
• Workers and low-income earners benefit from higher disposable income as essential items are tax-free and tax pressure on salaries is reduced.
• Nigeria’s tax rates are now among the lowest in Africa, making goods cheaper and encouraging more investment and job creation.
• Businesses that hire more workers get extra tax deductions, while investors enjoy capital gains tax exemptions on most stock market profits.
• Digital tax systems, risk-based audits, and a new Tax Ombudsman will reduce harassment, multiple taxation, and disputes with tax authorities.
• Only high-income earners and big companies that previously avoided taxes are expected to pay more, promoting fairness and better public revenue for development.
