Social media is awash with claims that Nigeria’s new tax law will cripple businesses, but official provisions tell a different story.
Barely weeks after President Bola Tinubu signed the 2025 Tax Reform bills into law, social media has been flooded with hot takes, half-truths, and outright falsehoods. Some popular blogs have made it a constant habit to feed the public with lies. One of the loudest critics is a certain “Biggest Mack,” on Twitter who warned that the reforms would be “the end of you and your business.” His thread has gone viral, feeding fear and anger at a time when what Nigerians need most is clarity.
But a closer look at the gazetted law shows that many of the claims being peddled are misleading. Yes, taxation is never popular, but Nigeria’s new tax framework is far from the doomsday scenario being painted online.
Not Every Bank Inflow is Taxed
Let’s start with the electronic transfer levy, which Mack described as a trap waiting to bleed businesses dry. He argues that every time money enters your account, the government pounces. That is simply false. Not every inflow into your account is subject to tax. The law makes it clear: only business profits are taxable, not every deposit.
Even then, before tax is calculated, all legitimate business expenses and statutory deductions, like pension contributions, health insurance, and housing schemes, are allowed.
This is the same standard practice used in advanced economies we claim to admire. To suggest that every ₦10,000 transfer automatically attracts multiple layers of tax is fearmongering, not fact.
Protecting the Small Business Owner
Mack also raised alarm that once a business crosses ₦25 million in turnover, it automatically loses protection and gets crushed under new levies. That too is a distortion. The new law actually provides significant relief for micro and small businesses. Enterprises with turnover of up to ₦100 million and assets not exceeding ₦250 million are exempt from Company Income Tax, Capital Gains Tax, and the new Development Levy.
In plain terms: that neighbourhood provisions shop or your friend’s fashion startup is not being targeted. If anything, the reforms encourage them to formalize and grow without fear of excessive taxation. By setting exemptions and clear thresholds, the law is creating breathing space for small entrepreneurs, something Nigeria has historically failed to do…