Last Updated on 15/12/2025 by Rasheed Busari
The next BIG THING happening in Nigeria in the year 2026 is the implementation of the new NIGERIA TAX REFORM ACTS. This tax reform is the most significant policy development expected to shape Nigeria’s economic landscape in 2026. This reform represents a historic overhaul of Nigeria’s tax framework and is anticipated to generate long-term positive spiral effects on businesses, individuals, government institutions, and the overall economic environment.
The reform repeals numerous outdated and fragmented tax statutes that no longer align with contemporary, modern and digital business realities. On 26 June 2025, President Bola Ahmed Tinubu officially signed and gazetted the reform as law. The new tax reform comprises four major Acts:
- Nigeria Tax Act 2025 (NTA 2025)
- Nigeria Tax Administration Act 2025 (NTAA 2025)
- Nigeria Revenue Service (Establishment) Act 2025 (NRS 2025)
- Joint Revenue Board (Establishment) Act 2025 (JRB 2025)
According to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, the reform’s primary beneficiaries are low-income earners and Small and Medium Enterprises (SMEs). Before this reform, low-income earners and micro/small businesses faced tax burdens that were comparatively similar to those imposed on high-income earners and large corporations. Effective January 2026, this inequity will be addressed through streamlined tax reliefs, improved thresholds, and targeted incentives.
Overall, the reform aims to stimulate economic growth, enhance tax fairness, eliminate outdated administrative practices, and establish a robust foundation for Nigeria’s fiscal future.
Brief Overview of the Four Tax Reform Acts
Nigeria Tax Act 2025 (NTA 2025)
The NTA 2025 is the core legislation of the reform. It serves as the comprehensive handbook governing the administration of taxes, reliefs, deductions, and incentives across the country starting from January 2026.
The Act consolidates more than 25 fragmented and outdated tax statutes into a unified structure. It is considered the most significant among the four Acts because it covers the major taxes collectible in Nigeria.
The Act is organized into nine chapters:
- Chapter 1: Objective and Application
- Chapter 2: Taxation of Income of Persons
- Chapter 3: Taxation of Petroleum Operations
- Chapter 4: Relief for Double Taxation
- Chapter 5: Taxation of Dutiable Instruments
- Chapter 6: Value Added Tax (VAT)
- Chapter 7: Surcharge
- Chapter 8: Tax Incentives
- Chapter 9: General Provisions
Through its consolidation efforts, the NTA 2025 promotes clarity, reduces ambiguity, and simplifies tax compliance for both individuals and businesses.
Nigeria Tax Administration Act (2025)
The NTAA 2025 outlines the structure, roles, and operational responsibilities of tax authorities in Nigeria. It governs the administrative aspects of tax collection, filing, assessment, and compliance enforcement.
The Act contains five chapters:
- Chapter 1: Objective, Application, Jurisdiction, and Registration of Tax Authorities
- Chapter 2: Returns, Assessment, and Payments
- Chapter 3: General and Administrative Provisions
- Chapter 4: Offences and Penalties
- Chapter 5: Miscellaneous Provisions
Its implementation is expected to improve transparency, enhance the efficiency of tax administration, and reinforce accountability.
Nigeria Revenue Service (Establishment) Act 2025
The NRS Act 2025 repeals the Federal Inland Revenue Service (Establishment) Act 2007 and formally replaces the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service (NRS).
Beginning January 2026, the NRS will become the central agency responsible for collecting all revenue accruing to the Federal Government.
The Act contains eight parts:
- Part 1: Objective and Application
- Part 2: Establishment of the Nigeria Revenue Service
- Part 3: Establishment and Composition of the Governing Board
- Part 4: Management and Staff of the Service
- Part 5: Financial Provisions
- Part 6: Powers and Operational Authority
- Part 7: Reporting and Accountability Framework
- Part 8: Miscellaneous Provisions
The transition from FIRS to NRS is expected to modernize revenue collection, strengthen governance, and align Nigeria’s tax operations with global best practices
Joint Revenue Board (Establishment) Act 2025
The Joint Revenue Board (JRB) Act 2025 establishes three entities critical to nationwide tax coordination:
- Joint Revenue Board (JRB): Replaces the former Joint Tax Board (JTB) and is responsible for harmonizing tax policies across federal, state, and local governments.
- Tax Appeal Tribunal (TAT): Provides a structured mechanism for handling tax disputes outside the court system, ensuring faster resolution.
- Office of the Tax Ombud: Serves as an independent institution responsible for protecting taxpayer rights, investigating complaints against tax authorities, and ensuring fairness in revenue administration.
The joint revenue Board (Establishment) Act contains seven parts:
- Part 1: objective and application
- Part 2: Establishment of the joint revenue board
- Part 3: Management and staff of the board
- Part 4: Financial Provisions
- Part 5: establishment of the tax appeal tribunal
- Part 6: establishment of the office of the tax ombud
- Part 7: miscellaneous provisions
The JRB Act enhances policy alignment, reduces inter-agency conflicts, and strengthens taxpayer protection mechanisms.
Implications and expected impact of the New Tax Reform
Collectively, the four Acts are designed to:
- Modernize Nigeria’s tax architecture
- Promote ease of doing business
- Improve tax equity for low-income earners and SMEs
- Boost competitiveness of domestic industries
- Enhance sustainable revenue mobilization
- Reduce multiple taxation and administrative bottlenecks
- Strengthen accountability and transparency across tax institutions
The reform is positioned as a cornerstone for Nigeria’s economic transformation, laying a strong foundation for long-term fiscal stability, increased investor confidence, and a more predictable tax environment.
Download copies of the new tax reform acts here
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