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4 Acts · Effective January 2026 · Comprehensive

Nigerian Tax Laws 2025–2026

Comprehensive reference to the landmark Nigeria Tax Act 2025–2026 and supporting regulatory framework. Four Acts consolidating and replacing all previous Nigerian tax legislation.

4New ActsSigned into law 2025
6+Acts ReplacedPITA, CITA, VATA, CGTA…
Jan2026 EffectiveNew rates in force
NRSNew AuthorityReplaces FIRS
Active Legislation

2025–2026 Tax Reform Package

Primary Legislation
📜

Nigeria Tax Act, 2025–2026

The consolidated tax legislation replacing PITA, CITA, CGTA, VATA, and other statutes. Establishes new PAYE bands (0%–25%), company tax rules (30% CIT + 4% Development Levy), VAT framework (7.5%), withholding tax rates, and capital gains provisions.

Personal Income TaxCompany Income TaxValue Added TaxCapital Gains TaxWithholding TaxDevelopment Levy
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⚖️

Nigeria Tax Administration Act

Modernised tax administration procedures, taxpayer rights, penalties framework, objection and appeal processes, and NRS enforcement powers.

AdministrationPenaltiesAppealsEnforcement
🏛️

Nigeria Revenue Service Act

Transforms FIRS into the Nigeria Revenue Service (NRS) with expanded digital enforcement powers, new governance structure, and enhanced mandate.

NRS EstablishmentFederal CollectionGovernance
🤝

Joint Revenue Board Act

Creates the institutional framework for federal–state revenue coordination, harmonised systems, revenue sharing, and inter-governmental dispute resolution.

Revenue SharingCoordinationInter-Governmental
What Changed

Key Changes Under the 2025–2026 Reform

👤

Personal Income Tax

First ₦800,000 now tax-free. New 6-band progressive rates (15%–25%). CRA abolished, replaced with rent relief (max ₦500K). Minimum tax removed. Gratuity now taxable. Loss-of-employment exempt up to ₦50M.

🏢

Company Income Tax

Small companies (≤₦100M turnover, ≤₦250M assets) now exempt from CIT, CGT, and Development Levy. Standard rate stays at 30% + 4% Development Levy. Medium category abolished. Professional services excluded from small company status.

🧾

Value Added Tax

Rate unchanged at 7.5%. Full input VAT recovery now allowed. E-invoicing mandated. Expanded exempt items to protect low-income earners. New compliance and registration requirements.

📋

Withholding Tax & Administration

WHT rates unchanged but small companies exempt on ≤₦2M/month transactions with valid TIN. FIRS becomes NRS. Digital filing mandatory. New Tax Ombudsman role. Unified TIN system. Stricter penalties.

Historical Reference

Previous Tax Legislation (Repealed)

Personal Income Tax Act (PITA) 2011

Governed individual income taxation with progressive bands from 7% to 24%. Included the Consolidated Relief Allowance (CRA) system.

Replaced by NTA 2025–2026

Companies Income Tax Act (CITA)

Imposed 30% CIT on company profits with minimum tax provisions, pioneer status incentives, and the medium company category at 20%.

Replaced by NTA 2025–2026

Value Added Tax Act (VATA)

Established the VAT regime at 7.5% (increased from 5% in 2020) with defined exempt and zero-rated supplies.

Replaced by NTA 2025–2026

Capital Gains Tax Act (CGTA)

Imposed 10% tax on gains from disposal of chargeable assets with exemptions for government securities.

Replaced by NTA 2025–2026

FIRS Establishment Act 2007

Created the Federal Inland Revenue Service as the body responsible for federal tax collection.

Replaced by NTA 2025–2026

Petroleum Profits Tax Act (PPTA)

Separate taxation regime for petroleum operations, now incorporated within the NTA framework.

Replaced by NTA 2025–2026

Apply These Laws in Practice

Use our free calculators to compute your obligations under the current framework, or test your knowledge with our interactive quiz.