“These new laws simplify our tax regime and deliver Nigeria’s first major, pro-people tax cuts in a generation,” Tinubu stated.
Earlier, I signed into law four historic tax and fiscal bills at the Aso Villa, marking a new dawn in Nigeria’s economic governance.
These new laws simplify our tax regime and deliver Nigeria’s first major, pro-people tax cuts in a generation. They also provide targeted relief… pic.twitter.com/iOtv6VLLRb
— Bola Ahmed Tinubu (@officialABAT) June 26, 2025
President Bola Tinubu signed four major tax and fiscal bills into law on Thursday, following months of debate over issues like VAT sharing and inherited assets taxation.
“These new laws simplify our tax regime and deliver Nigeria’s first major, pro-people tax cuts in a generation,” Tinubu stated.
More Nigerians Will Pay Less Tax
The tax-exempt income threshold has been raised from N300,000 to N800,000. Lower-income earners now face reduced or no tax. For instance, those earning between N800,000 and N3 million will pay 15% on amounts above N800,000. Higher earners face scaled rates, reaching 25% for income above N50 million. Essential items like food, rent, healthcare, and education will remain VAT-free.
Employees Must Now Declare All Income
All workers must file annual tax returns covering all income, not just salaries. This includes freelance, rental, and investment earnings.
Tax ID Now Mandatory for Banking
Tax IDs are required for financial services. Banks must report monthly transactions above N50 million for individuals and N250 million for companies.
Nigerians to Pay Taxes on Crypto
Digital assets, including NFTs and crypto, are now taxable.
Major Adjustments Made by Lawmakers
Lawmakers kept VAT at 7.5% but changed the sharing formula and restricted the president’s power to grant tax waivers.