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At the heart of the reforms is the Nigeria Tax Act (NTA), which replaces a patchwork of outdated tax laws with a single, more coherent framework.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

Elumelu retires as UBA Chairman, Nnorom named successor

Published

34 minutes ago

July 7, 2026

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By Babajide Komolafe

United Bank for Africa, UBA Plc, has announced the retirement of its Group Chairman, Tony Elumelu and the appointment of Mr. Emmanuel Nnorom as his successor.

In a statement announcing the board leadership change filed with the Nigerian Exchange, NGX, the bank stated: “Mr. Tony O. Elumelu, Group Chairman of UBA, will retire from the Board of Directors of UBA with effect from 21 August 2026, upon the completion of the maximum 12-year tenure prescribed for Non-Executive Directors of Banks by the Central Bank of Nigeria.

“At its meeting held on 6 July 2026, the Board accepted Mr. Elumelu’s retirement letter and elected Mr. Emmanuel N. Nnorom, a Non-Executive Director of the Bank, as his successor, with effect from 21 August 2026.

“The Board places on record its profound appreciation to Mr. Elumelu for his visionary leadership and exceptional contribution to the growth, transformation and institutional strength of the UBA Group.

“Mr. Nnorom is a chartered accountant with over forty years’ experience in banking, finance and audit. He brings to the role, extensive leadership experience and deep institutional knowledge of UBA.”

Commenting on his retirement, Mr. Tony O. Elumelu said: “Serving United Bank for Africa has been one of the great privileges of my career. UBA has a unique competitive position, across Africa and globally, and I leave the Board with great confidence in UBA’s future. Emmanuel Nnorom is a leader of integrity, experience and sound judgement, and I am confident that the Bank will continue to thrive under his leadership.

Speaking on his appointment, Nnorom said: “I am honoured by the trust the Board has placed in me and deeply conscious of the legacy I inherit. I look forward to working with my colleagues on the Board, Management and our staff across all our markets to sustain UBA’s momentum and continue delivering long-term value to our shareholders, customers and stakeholders.”

Business

Dangote, major marketers cut petrol depot prices as FG mounts pressure

Published

46 minutes ago

July 7, 2026

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•IPMAN targets sub-N800/litre

By Udeme Akpan & Obas Esiedesa

Nigeria’s downstream petroleum market witnessed another round of price reductions on Monday, with the Dangote Petroleum Refinery and several major fuel marketers lowering depot prices for Premium Motor Spirit (PMS), popularly known as petrol, and diesel.

This development comes at the backdrop of pressures from the Federal Government (FG) as well as growing competition and improving product availability.

Earlier yesterday before the price adjustments, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, told a stakeholders’ meeting that the current retail price of petrol does not reflect the sharp decline in price of crude oil.

The meeting, convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), was attended by representatives of the Dangote Refinery, Major Energy Marketers Association of Nigeria (MEMAN), IPMAN, Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Nigerian Association of Road Transport Owners (NARTO), and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).

The latest mid-day depot price report showed that Dangote Refinery reduced it’s ex-depot petrol price in Lagos by N3 per litre, from N1,079 to N1,076 per litre, while maintaining its diesel price at N1,500 per litre.

The reduction comes as several marketers also adjusted their prices downward in an apparent bid to remain competitive in an increasingly price-sensitive market.

Among the major Lagos depots, NIPCO cut its petrol price by N2 to N1,076 per litre, while Pinnacle lowered its price by N3 to N1,075 per litre. Sahara, AIPEC, and African Terminal each reduced prices by N4, bringing their petrol prices to N1,075 per litre.

Aiteo maintained its petrol price at N1,075 per litre.

Diesel prices also softened across several depots. Rain Oil reduced it’s AGO price by N15 to N1,430 per litre, while Ibeto, Duport, and Ibachem all cut prices to N1,430 per litre. Dangote Refinery, however, retained its diesel price at N1,500 per litre.

In Port Harcourt, marketers recorded even steeper reductions. Matrix slashed its petrol price by N8 to N1,087 per litre and cut diesel by N55 to N1,465 per litre, representing the biggest diesel price reduction recorded during the trading session.

Sigmund also reduced its petrol price by N12 to N1,082 per litre, although it raised its diesel price slightly by N2 to N1,463 per litre.

The downward trend extended to other regions. In Calabar, Fynfield reduced its petrol price by N7 to N1,090 per litre, while Soroman lowered its price by N5 to the same level.

In Warri, Matrix and Prudent both reduced petrol prices by N5 to N1,085 per litre. On the diesel side, Prudent cut its price by N25 to N1,475 per litre, while A.Y.M. Shafa lowered its diesel price by N3 to N1,455 per litre.

Industry analysts said the latest adjustments reflect heightened competition among suppliers following increased domestic refining capacity and relatively stable international crude oil prices.

Speaking after a stakeholders’ meeting on Cost-Reflective Pricing of PMS Lokpobiri said while the government did not interfere when petrol prices rose in response to higher crude oil prices, there was now no justification for maintaining current pump prices with Brent crude trading below $70 per barrel.

“NMDPRA never faulted anybody as far as the price was concerned because we are operating a fully deregulated economy.

“But deregulation doesn’t mean excessive profiteering. The Petroleum Industry Act also places responsibility on NMDPRA to ensure that steps are taken to prevent unnecessary profiteering.

“When Brent crude was about $118 per barrel, prices adjusted rapidly. Now that crude prices have dropped significantly, why has the pump price not come down in the same way?” he asked.

The Minister said discussions with marketers were constructive and would continue until a framework was agreed to ensure petrol prices better reflected developments in the global crude oil market.

“We had very fruitful and frank discussions with the marketers and leaders of the downstream sector with a view to driving down the price of PMS. The engagements are still ongoing.

“We told them the concerns of Nigerian consumers, and they have agreed to go back and think of what concrete steps can be taken. Discussions are ongoing, and we believe we are getting somewhere,” he said.

Also speaking, Chief Executive of NMDPRA, Mallam Rabiu Umar, said the current disconnect between falling international crude prices and sustained domestic retail PMS prices made the engagement with marketers necessary.

He noted that previous consultations with stakeholders had helped ease prices in the domestic Liquefied Petroleum Gas (LPG) market and expressed confidence that similar dialogue would deliver positive results for petrol consumers.

“Deregulation is not a licence for market distortion or unfair consumer pricing. Sustainable profitability for marketers and consumer welfare are not mutually exclusive,” Umar said.

Meanwhile, IPMAN said petrol prices could decline below N800 per litre as independent marketers begin purchasing products directly from the Dangote Petroleum Refinery.

IPMAN National President, Abubakar Garima, said the association had already reduced petrol prices by about N125 per litre across the country and would continue to lower prices whenever product acquisition costs decline.

Business

Recapitalisation: Companies with outstanding claims will not be relicensed — NAICOM

Published

57 minutes ago

July 7, 2026

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By Rosemary Iwunze

As the insurance recapitalisation deadline of July 31st 2026 draws near, the National Insurance Commission, NAICOM, has stated that it will not re-license any company with outstanding claims.

In a letter to all Managing Director/CEOs of insurance companies, issued yesterday, titled: “Regulatory Directive – Settlement of Discharged Claims as A Precondition for Re-Licensing Pursuant to the Ongoing Recapitalization Exercise” NAICOM noted that the move is part of efforts to ensure that the exercise achieves its intended objectives.

The letter stated: “The ongoing recapitalization exercise is aimed at strengthening the financial capacity, resilience, and overall stability of the insurance sector. As part of efforts to ensure that this exercise achieves its intended objectives and enhances public confidence in the insurance market, all insurance companies are hereby directed to fully settle all outstanding duly discharged claims. Please note that this is a mandatory pre condition for being certified as having fulfilled the statutory recapitalization requirement and the Commission’s regulatory clearance.

“Accordingly, all insurance companies are required to Identify, reconcile all discharged claims currently outstanding in their records and thereafter, ensure full settlement of these claims to beneficiaries without further delay. A report of the reconciled discharged claims signed by the Managing Director/CEO and evidence of settlement of these claims shall be submitted to the Commission on or before 21th of July 2026.

“Please note that compliance with this directive is a critical regulatory criterion for eligibility, confirmation, and re licensing of all insurance/reinsurance companies after the conclusion of the ongoing recapitalization exercise. All insurance/reinsurance companies are required to ensure strict compliance with the content of this regulatory directive.”