The Nigerian government has just unveiled a major shake-up in its tax regime under the newly enacted Nigerian Tax Act, which is set to take effect from January 2026—and it’s already sparking serious conversations in the business world.
According to the new law, corporate income tax will remain at 30% for all companies except small businesses with annual turnovers below ₦25 million, which will continue to enjoy a 0% tax rate.
But that’s not all! Companies with turnovers of ₦20 billion or more, or those that are part of multinational enterprise (MNE) groups, will now face a minimum effective tax rate of 15%. If they pay anything lower, they must top it up to meet that benchmark.
In another bold move, the 10% capital gains tax has been abolished, thanks to the repeal of the Capital Gains Tax Act. Gains are now consolidated into the corporate tax framework—one less burden for Nigerian businesses!
These changes follow the reform blueprint proposed by Taiwo Oyedele’s presidential tax reform committee, which had earlier considered slashing the corporate tax rate to 25% to boost competitiveness and attract investors.
Is this the tax relief Nigerian businesses have been waiting for or just a reshuffling of the burden? Let’s hear your thoughts!
