Nigeria’s new tax laws exempt low earners, grant tenants rent relief, and shift tax obligations to wealthy individuals and corporations.
President Bola Tinubu has signed into law a set of new tax reforms aimed at easing the burden on low and middle-income Nigerians while shifting obligations to the wealthy and large corporations.
The reforms, drafted by the Presidential Fiscal Policy and Tax Reforms Committee led by Taiwo Oyedele and gazetted on September 10, 2025, consolidated multiple outdated statutes into the Nigeria Tax Act, Tax Administration Act, Nigeria Revenue Service Act, and Joint Revenue Board Act.
Highlights include exemption of individuals earning up to N800,000 annually from income tax, progressive tax rates of up to 25 per cent on incomes above N50 million, and zero corporate tax for small businesses with turnover below N100 million.
Significantly, tenants can now deduct 20 per cent of annual rent, capped at N500,000, from taxable income. “It is a huge relief for rent payers,” said Festus Adebayo of the Housing Development Advocacy Network.
The government said the reforms “protect the poor while taxing the rich.”