Please note
Belmadeng is an independent study platform and is not affiliated with the FIRS / Nigeria Revenue Service (NRS). This is general information, not tax or legal advice — for your situation consult a qualified tax professional. From 1 January 2026 the Federal Inland Revenue Service (FIRS) became the Nigeria Revenue Service (NRS); use only the official portals (nrs.gov.ng and taxpromax.gov.ng), and confirm current rates and rules there.
The four Acts
Signed in 2025 and effective 1 January 2026, four laws overhaul Nigerian tax: the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board Act. Together they replace older laws (CITA, VAT Act, PITA, CGT, stamp duties, etc.).
FIRS becomes the NRS
The FIRS became the Nigeria Revenue Service (NRS) — a more autonomous federal revenue agency — with a new Office of the Tax Ombud for complaints.
Rate changes
- CIT reduced 30% → 25% for medium/large companies (phased).
- VAT stays 7.5%, with new exemptions for food, healthcare and education.
Relief for small business
Small companies (turnover ₦100m or below, fixed assets ₦250m or below) are exempt from CIT, Capital Gains Tax and the new Development Levy — a big win for startups and SMEs.
Single TIN & e-invoicing
A single TIN per taxpayer, with an individual’s NIN serving as their Tax ID, and mandatory e-invoicing phased in for businesses.
Other changes
Revised personal income tax bands easing low earners, stricter penalties and data-driven enforcement, and mandatory registration for non-residents earning Nigerian business income.
Tips
- Check if you now qualify as a small company.
- Ensure your TIN/NIN is sorted.
- Confirm specifics with a tax professional — this is an overview, not advice.
What took effect and when
Nigeria's tax framework was overhauled by four Acts signed in 2025 and taking effect from 1 January 2026: the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act. Together they consolidate and replace multiple older tax laws, rename FIRS as the Nigeria Revenue Service, and harmonise federal and state administration. It's described as the most comprehensive update to Nigeria's tax laws in decades. Implementation has proceeded despite political debate over aspects of the process — so rely on official NRS guidance for the settled position.
Who benefits most
The reform is designed to lighten the load on smaller players and lower earners:
- Small companies — exemption from CIT, Capital Gains Tax and the Development Levy (threshold raised well above the old ₦25m; confirm the current figure).
- Lower-income individuals — a more progressive PIT that eases the bottom of the scale.
- VAT — rate held at 7.5%, higher registration threshold, and broader input-VAT recovery.
- Startups — incentives such as a multi-year tax holiday for qualifying “labelled” startups.
Lighter burden, firmer enforcement
The trade-off is important to understand: while the burden is lighter for those the reform targets, the system underneath is stricter. The NRS is more automated and data-driven (cross-referencing bank, payroll and filing data), penalties are firm, and enforcement tools include account restrictions for established debts. Thresholds and exemptions can be applied retroactively if you crossed them without declaring — so your records are your protection. The practical takeaway: enjoy the reliefs, but know your numbers, keep clean records, and file on time. Confirm specifics on official channels or with an adviser.
Frequently asked questions
What is Nigeria’s 2026 tax reform?
Four Acts effective 1 January 2026 (the Nigeria Tax Act, Tax Administration Act, Nigeria Revenue Service Act and Joint Revenue Board Act) that overhaul Nigerian tax and replace older laws.
Did FIRS get renamed?
Yes — it became the Nigeria Revenue Service (NRS).
What is the new Company Income Tax rate?
Reduced from 30% to 25% for medium and large companies (phased); small companies are exempt from CIT.
Are small businesses exempt under the new law?
Small companies (turnover ≤₦100m, fixed assets ≤₦250m) are exempt from CIT, Capital Gains Tax and the new Development Levy.
When did the new tax laws take effect?
1 January 2026.
What is the new tax law in Nigeria for 2026?
Four Acts signed in 2025 and effective 1 January 2026 — the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board (Establishment) Act. Together they consolidate and replace multiple older tax laws, rename FIRS as the Nigeria Revenue Service, and harmonise federal and state administration.
When did the new tax laws take effect?
1 January 2026 — the four reform Acts (signed in 2025) came into effect then. Implementation has proceeded despite political debate over aspects of the process, so rely on official NRS guidance for the settled position.
Who benefits from the 2026 tax reform?
Chiefly smaller players and lower earners — small companies (exempt from CIT, CGT and the Development Levy), lower-income individuals (more progressive PIT), VAT-registered businesses (rate held at 7.5%, higher threshold, broader input-VAT recovery), and qualifying startups (multi-year tax holiday). Confirm current thresholds officially.
Is the new tax system stricter?
Yes — while the burden is lighter for those it targets, the system underneath is stricter: the NRS is more automated and data-driven (cross-referencing bank, payroll and filing data), penalties are firm, and enforcement includes account restrictions for established debts. Thresholds can apply retroactively, so records are your protection.
What should businesses do under the new tax law?
Enjoy the reliefs, but know your numbers, keep clean records, and file on time — the enforcement infrastructure is sharper and exemptions can be checked retroactively. Confirm specifics on official NRS channels or with a tax adviser, since some details have been reported inconsistently.
Related tax guides
FIRS → NRS · CIT · For SMEs · All tax guides · VAT
Reviewed: 22 Sept 2026 · Author: Belmadeng Editorial. Independent guide, not affiliated with the FIRS/NRS, and not tax advice. Tax rates, thresholds and rules change — always confirm on the official NRS channels or with a tax professional.