President Bola Ahmed Tinubu has signed a brand-new tax law called the Nigeria Tax Act and trust me this one is not business as usual.
This is a 215-page powerhouse of a law and it officially takes effect from January 1 2026.
What does it do? It replaces amends and merges several existing tax laws into one unified framework. More importantly it closes loopholes.
In simple Nigerian terms tax evasion will no longer be easy.
Let’s be honest many people and businesses have survived for years by playing smart with tax. But under this new law that era is ending.
Your BVN is already linked to every bank account you operate personal or corporate. The government has invested heavily in digital systems designed to track income transactions and compliance.
Whether you are a salary earner a freelancer a business owner a startup founder or someone operating multiple accounts they can find you and they will.
There is no hiding place again.
The only real solution is tax education and tax planning.
You need to learn the tax laws plan your finances properly and stay on the right side of the law. There are no shortcuts.
The goal is not punishment but compliance and that is why planning must start now not when 2026 arrives and catches people unprepared.
This conversation is important because wrong or half-baked information spreads fast especially on social media. Panic is often driven by misinformation and that helps no one.
So let’s focus on the actual highlights of the tax reforms as officially announced.
The Federal Government of Nigeria has introduced significant tax reforms effective January 1 2026 aimed at improving transparency boosting revenue and modernizing government operations.
On personal income tax individuals earning up to one hundred thousand naira per month or one point two million naira annually are exempt from personal income tax. The first eight hundred thousand naira of taxable income attracts a zero percent tax rate. This is designed to protect low-income earners.
On business and company taxes companies with turnover of one hundred million naira or less and fixed assets below two hundred and fifty million naira will pay zero percent companies income tax. Startups that meet government criteria also qualify. Agricultural businesses enjoy a five-year tax holiday. These measures are aimed at supporting SMEs encouraging growth and attracting investment.
On value added tax essential goods and services such as basic food items rent educational materials healthcare services and agricultural inputs are exempted or zero rated. Small businesses with turnover of one hundred million naira or less are not required to charge VAT on sales. This is meant to reduce cost of living pressure.
On tax identification all taxable Nigerians will be required to obtain a Tax Identification Number to operate bank accounts from January 2026. Students and dependents are excluded.
Overall these reforms are designed to reduce the tax burden on low-income earners support small and medium enterprises improve transparency increase government revenue modernize the tax system and encourage voluntary compliance.
Whether we like it or not Nigeria’s tax system is going digital centralized and more serious.
2026 is closer than it looks. The smartest move right now is not to argue online but to learn plan and position yourself properly.
This is not a time for fear. It is a time for knowledge and preparation.
Stay informed ask questions and plan ahead because when 2026 comes it will not ask if you are ready.
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