The Federal Government has announced a comprehensive package of 50 tax reliefs and exemptions that will take effect from January 1, 2026, under its sweeping fiscal reform programme aimed at simplifying taxation, supporting low-income earners, and boosting economic growth.
The reforms were unveiled by the Presidential Fiscal Policy and Tax Reforms Committee, marking a significant shift in the nation’s fiscal direction from aggressive revenue collection to targeted relief, compliance, and accountability.
President Bola Ahmed Tinubu had, on June 26, 2025, signed into law four major tax reform bills the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA) — forming the backbone of the administration’s efforts to modernize and harmonize the country’s tax framework.
According to details released by the Committee, the reliefs covered Personal Income Tax, Companies Income Tax, Value Added Tax (VAT), Stamp Duties, and Capital Gains Tax.
From 2026, individuals earning the national minimum wage or less will be completely exempt from tax, while those earning up to ₦1.2 million annually will also enjoy full exemption. The reform also introduced reduced PAYE rates for middle-income workers, rent reliefs, and tax deductions for pension, insurance, and housing contributions.
Small businesses will be among the biggest beneficiaries. Companies with annual turnover below ₦100 million and fixed assets under ₦250 million will pay zero income tax and will be exempt from withholding tax deductions and other levies. Startups and agricultural ventures will also enjoy extended tax holidays to encourage innovation and food security.
In addition, the reforms included capital gains exemptions to attract investors, especially in startups, renewable energy, and agro-industrial ventures, while promoting reinvestment in local industries.
On consumer relief, the government has expanded VAT exemptions on essential goods and services including basic food items, education materials, health products, baby items, disability aids, fuel, solar energy equipment, and agricultural inputs to help reduce the cost of living.
To enhance awareness, the Committee also launched a civic education campaign tagged “Influencing for Good”, designed to engage social media influencers and content creators in explaining the benefits of the reforms to citizens in clear, relatable terms.
According to the Committee, nominations for participating influencers close on November 9, 2025, with shortlisted candidates to receive training on tax education and civic engagement.
While analysts have welcomed the initiative as a bold move towards inclusive growth, they also caution that its success will depend on improved revenue collection, transparency, and fiscal discipline.
