Business

Nigeria’s new tax laws: What they really mean for you

Published

6 months ago

January 1, 2026

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Nigeria’s new tax laws: What they really mean for you

By Babajide Komolafe

Have you heard the buzz about Nigeria’s new tax laws? If your first reaction is to sigh and flip the page, you’re not alone. For many Nigerians, taxes feel distant, complicated, and sometimes unfair. But this time, the changes are too important to ignore because they touch almost every aspect of our economic lives—from how much small businesses pay, to what happens to VAT on your everyday purchases, and even how government agencies are held accountable.

In a bold move to modernise Nigeria’s tax system, the Federal Government has introduced three major tax laws. Together, they aim to simplify taxation, plug revenue leakages, reduce inequality, and align Nigeria with global best practices.

The three laws are:

The Nigeria Tax Act (NTA) – which defines who pays what, and how much

The Nigeria Tax Administration Act (NTAA) – which explains how taxes will be collected, monitored, and enforced?

The Nigeria Revenue Service (Establishment) Act (NRSEA) – which creates a new, more powerful tax authority to oversee the system. Think of it this way: the NTA sets the rules of the game, the NTAA explains how the game is played, and the NRSEA appoints the referee.

Let’s break it all down in plain language

Nigeria Tax Act (NTA): Who Pays What, and How Much?

At the heart of the reforms is the Nigeria Tax Act (NTA), which replaces a patchwork of outdated tax laws with a single, more coherent framework. Its goal is simple: fairness, clarity, and balance.

Small Businesses Finally Get Breathing Space

For years, small businesses have complained that Nigeria’s tax system punishes them before they can even grow. The NTA attempts to fix this.

Under the new law, companies earning N50 million or less annually are exempt from certain taxes, including Company Income Tax.

This is a significant increase from previous thresholds and a major relief for micro, small, and medium-sized enterprises (MSMEs).

For a small fashion designer, retailer, or tech startup struggling with rent, electricity, and logistics, this exemption could mean the difference between survival and shutdown. The idea is clear: help small businesses grow first, tax them later.

Big Companies Are Expected to Pay Their Fair Share

While small businesses get relief, large corporations face stricter obligations.

One major change is the increase in Capital Gains Tax to 30%, aligning it with the corporate income tax rate. This means profits from selling assets—like shares, land, or businesses will now attract higher taxes. Even more significant is the introduction of a 15% minimum tax for multinational companies. This rule targets aggressive tax planning strategies that allow big firms to report little or no profit in Nigeria despite strong local operations.

In simple terms, even if a multinational uses accounting tricks to reduce its taxable profit, it must still pay at least 15%. This aligns Nigeria with global efforts to curb profit shifting and tax avoidance.

A Fairer Deal for Individuals

For individual taxpayers, the NTA introduces a more progressive income tax system.

If you earn ¦ 800,000 or less per year, you are now completely exempt from personal income tax. That’s good news for low-income earners and many workers in the informal sector.

On the other hand, high-income earners will pay more, with the top personal income tax rate rising to 25%. The principle is simple: those who earn more should contribute more.

This shift aims to reduce inequality while protecting vulnerable Nigerians.

New Levies and Foreign Income Rule

The Act introduces a 4% Development Levy, which consolidates older levies such as the Tertiary Education Tax. Instead of multiple deductions, there is now a single, clearer charge aimed at national development.

Another important addition is the Controlled Foreign Company (CFC) rule. This allows Nigeria to tax profits made by foreign subsidiaries of Nigerian companies—even if the profits are not brought back home.The goal? To prevent companies from hiding income abroad just to avoid taxes.

Value Added Tax. VAT Becomes More Practical

VAT has long been a headache for businesses, but the NTA makes key improvements.

Businesses can now recover VAT paid on services and fixed assets, reducing hidden costs. At the same time, essential goods such as basic food items and medical products are zero-rated, meaning no VAT is charged.

For consumers, this could translate into lower prices. For businesses, it simplifies compliance.

The NTA tries to strike a balance—supporting small businesses, demanding fairness from large corporations, and making taxation more equitable for individuals.

Nigeria Tax Administration Act (NTAA): How Taxes Will Be Collected and Tracked

If the NTA explains what you owe, the Nigeria Tax Administration Act (NTAA) explains how the government ensures taxes are actually paid.

Everyone Must Have a Tax ID

The NTAA makes it mandatory for all taxpayers to register and obtain a Taxpayer Identification Number (TIN). Without a TIN, doing business with the government—or even some private firms—becomes impossible.

This helps authorities track taxpayers and reduces identity confusion and evasion.

Digital Tax Is No Longer Optional

One of the biggest shifts is the move to full digital tax administration.

Businesses must now use e-invoicing, reporting transactions electronically in real time. VAT filings also become fully digital.

This reduces paperwork, speeds up processing, and makes it harder to underreport income.

New VAT Sharing Formula

VAT revenue sharing has changed significantly: Federal Government: 10%; States: 55%;

Local Governments: 35%.

This is a major win for states and local governments, giving them more resources to fund schools, hospitals, and local infrastructure.

Tougher Penalties for Non-Compliance

The NTAA introduces stiffer penalties to encourage compliance. For example, awarding a contract to a vendor without a TIN now attracts a N5 million fine.

There are also penalties for failing to disclose tax planning schemes or delaying tax payments.

Quicker Dispute Resolution

Tax disputes can now be resolved within 90 days. If the tax authority fails to respond within that period, the taxpayer’s objection is automatically upheld.This provision protects taxpayers from endless delays.

Even Government Agencies Must Comply

Perhaps most importantly, government agencies are no longer above the law. The Accountant-General can now deduct unpaid taxes directly from agency budgets.

The NTAA focuses on transparency, technology, and enforcement—rewarding honesty and punishing evasion.

Nigeria Revenue Service (Establishment) Act (NRSEA): Meet the New Tax Boss

The final piece of the puzzle is the Nigeria Revenue Service (Establishment) Act (NRSEA).

Under this law, the Federal Inland Revenue Service (FIRS) becomes the Nigeria Revenue Service (NRS)—a stronger, more autonomous institution.

A More Powerful, Better-Funded Agency

The NRS will receive 4% of total non-oil revenue collected, giving it the financial independence needed to invest in technology, training, and enforcement.

Digital Single Window for Trade

One of the most exciting innovations is the National Single Window Portal, a digital platform for trade documentation.

Importers and exporters can submit documents online, reducing delays, corruption, and revenue leakage.

Global Cooperation

The NRS can now work more effectively with foreign tax authorities under double taxation agreements, ensuring Nigerian businesses abroad pay fair taxes without being taxed twice.

The NRSEA modernises tax administration, strengthens enforcement, and promotes efficiency.

Final Takeaway

Taken together, Nigeria’s new tax laws signal a shift toward fairness, transparency, and digital efficiency. Small businesses gain relief, big companies face accountability, and individuals benefit from a more progressive system.

Taxes may never be exciting but if these reforms work as intended, they could help build a stronger, fairer Nigeria for everyone.

The post Nigeria’s new tax laws: What they really mean for you appeared first on Vanguard News.

Business

Beta Glass injects N1tr into economy in 10yrs, unveils new board

Published

10 minutes ago

July 7, 2026

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By Jimoh Babatunde

Beta Glass Plc says it has contributed over N1 trillion to Nigeria’s economy in the last 10 years, reaffirming its commitment to expanding investments, sustainable manufacturing and shareholder value.

At its 52nd Annual General Meeting in Lagos, shareholders approved key resolutions, including the reconstitution of the Board of Directors.

According to an independent Deloitte socio-economic impact report, the company accounts for nearly one per cent of Nigeria’s manufacturing output and about 14 per cent of the non-metallic products sub-sector.

Chairman, Dr. Vitus Ezinwa, said: “The newly reconstituted board will strengthen the company’s governance framework and position it for sustainable growth, increased shareholder value and stronger regional supply chains.”

The company appointed four non-executive directors — Nitin Kaul, Olusola Carrena, Bolaji Olatunbosun Osunsanya and Boye Olusanya — to strengthen corporate governance.

Chief Executive Officer, Alex Gendis, said: “The results achieved during the year demonstrate the resilience of our business and our ability to adapt to changing market conditions. We will continue to focus on operational excellence, innovation and disciplined execution as we position the company for sustainable growth, underpinned by our commitment to building and sustaining strong strategic partnerships with our customers.” The company reported unaudited first-quarter 2026 revenue of N37.54 billion, driven by improved operational efficiency and effective asset utilisation.

Business

Underwriter bags LUTH award for boosting voluntary blood donation

Published

6 hours ago

July 6, 2026

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By Rosemary Iwunze

AXA Mansard Insurance Plc has been honoured with the Community Hero Award by the Blood Transfusion Centre of the Lagos University Teaching Hospital (LUTH) in recognition of its contribution to strengthening voluntary blood donation and supporting efforts to improve access to life-saving blood for patients.

The recognition comes amid growing calls for increased voluntary blood donation to address recurring shortages in healthcare facilities across Nigeria, where hospitals continue to rely heavily on voluntary donors to meet transfusion needs.

According to the insurer, the award followed its sustained employee-led blood donation drives organised in partnership with the Blood Transfusion Centre, LUTH, as part of its corporate sustainability and community health initiatives.

Over the past two years, employees of the company have donated more than 200 pints of blood to support patients requiring life-saving transfusions, with participation drawn from across its operations.
The company said the initiative demonstrates its commitment to improving community wellbeing while fostering a culture of volunteerism among employees.

Chief Marketing Officer of AXA Mansard Plc, Adebola Surakat, described the recognition as an affirmation of the company’s purpose of advancing human progress through initiatives that extend beyond its core insurance business.

“At AXA Mansard, our purpose is to act for human progress by protecting what matters. We believe protection should be inclusive and extend beyond insurance to improving the wellbeing and resilience of the communities we serve,” she said.

According to Surakat, the award reflects not only the organisation’s commitment to supporting healthcare interventions but also the willingness of its employees to contribute to initiatives that create lasting social impact.

She noted that the company would continue to encourage employee volunteerism and invest in programmes that promote healthier and more resilient communities.

The Community Hero Award is presented to organisations that have demonstrated commitment to promoting blood donation awareness, encouraging voluntary participation and supporting the availability of safe and sustainable blood supplies for healthcare delivery.

Healthcare experts have consistently identified inadequate voluntary blood donation as one of the major challenges facing Nigeria’s healthcare system, with stakeholders urging greater private sector participation in initiatives that strengthen national blood reserves and improve emergency medical response.

Business

Private healthcare investment deepens as OneHealth by AXA expands specialist services

Published

6 hours ago

July 6, 2026

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By Rosemary Iwunze

PRIVATE healthcare providers are expanding investments in specialist medical services as rising cases of chronic diseases, an ageing population and increasing demand for quality healthcare continue to reshape Nigeria’s healthcare landscape.

The latest move came from OneHealth by AXA, which has introduced Geriatric and Optometry clinics at its Victoria Island Medical Centre in Lagos, widening access to specialised care and reinforcing the growing role of private healthcare providers in bridging critical service gaps.

Industry stakeholders have increasingly stressed the need for greater investment in specialist healthcare as Nigeria grapples with a rising burden of non-communicable diseases, while eye disorders and age-related illnesses continue to place pressure on the country’s healthcare system.

Speaking on the expansion, Chief Business Officer of OneHealth by AXA, Wahen Egbe, said the new clinics were established in response to the evolving healthcare needs of Nigerians and the increasing demand for specialised medical services.

“The addition of these clinics reflects the growing demand for specialised medical services that address the evolving health needs of people at different stages of life,” she said.

Egbe explained that the company’s decision to establish a dedicated Geriatric Clinic followed growing concerns over the healthcare needs of older adults as Nigeria records increasing cases of chronic and age-related illnesses.

According to her, the clinic offers comprehensive assessment, prevention, diagnosis and long-term management of conditions commonly associated with ageing, including hypertension, diabetes, arthritis, osteoporosis, cognitive decline, mobility disorders and other chronic illnesses requiring coordinated multidisciplinary care.

She added that beyond treatment, the clinic is designed to promote healthy ageing by helping senior citizens maintain functional independence and improve their quality of life through personalised care plans.

The Geriatric Clinic operates every Tuesday from 2:00 p.m. to 5:00 p.m., providing specialist consultations for elderly patients and their families.

Also speaking, Country Manager of OneHealth by AXA, Dr. Jadesola Idowu, said the introduction of the Optometry Clinic was aimed at improving access to preventive eye care and addressing the growing incidence of undiagnosed vision problems.

She noted that many eye conditions develop gradually without noticeable symptoms until significant vision loss has occurred, making routine eye examinations essential for early diagnosis and treatment.
“Our Optometry Clinic offers comprehensive eye examinations, vision screening, refraction services, prescription of corrective lenses, eye health assessments and early detection of common eye diseases affecting children, adults and older persons,” she said.

Idowu added that the clinic also provides preventive eye care counselling, occupational vision assessments, prescription updates and referrals for advanced ophthalmic treatment where necessary.
The Optometry Clinic operates from Monday to Friday between 9:00 a.m. and 5:00 p.m.

The expansion marks another step in OneHealth by AXA’s strategy to strengthen integrated healthcare delivery by providing multiple specialist services within a single medical facility.

The company, a subsidiary of the AXA Group, currently offers specialist services spanning cardiology, endocrinology, obstetrics and gynaecology, paediatrics, orthopaedics, physiotherapy, ear, nose and throat (ENT), urology and endoscopy, while also operating 24-hour ambulance and radiology services to improve emergency response and continuity of care.

Healthcare analysts have maintained that sustained private sector investment in specialist care, alongside stronger public-private collaboration, will be critical to improving access to quality healthcare, reducing pressure on public hospitals and enhancing health outcomes as demand for specialised medical services continues to rise across the country.