The Federal Government has unveiled 50 tax exemptions and relief measures, set to start January 1, 2026, as part of a major fiscal reform agenda aimed at simplifying Nigeria’s tax system and supporting low-income earners, small businesses, and investors.
The reforms follow the June 2025 signing of four landmark tax laws—the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act, and Joint Revenue Board Act—designed to reduce duplication, reward compliance, and make taxation growth-friendly.
For individuals, full tax exemptions will apply to earnings at or below the national minimum wage, with relief extended to those earning up to ₦1.2 million.
Reduced PAYE rates, rent relief, and deductions for pensions, life insurance, housing, and health insurance are also included.
Exemptions cover pension funds, retirement benefits, personal vehicle and house sales, and compensation for job loss up to ₦50 million.
Small businesses with turnover below ₦100 million and fixed assets under ₦250 million will pay zero income tax, enjoy five-year holidays for agricultural ventures, and benefit from employment and wage-related deductions.
Startups under approved innovation labels will receive full tax exemption, while investors in qualifying ventures gain capital gains relief.
VAT exemptions now cover essentials such as food, education materials, health services, baby products, sanitary pads, disability aids, energy inputs, and electric vehicles.
Digital and financial transaction reliefs include exemptions for transfers under ₦10,000 and stamp duties on securities and shares.
To promote awareness, the government launched “Influencing for Good,” a campaign training content creators to educate citizens on the reforms.
Nominations for participants close November 9, 2025, via https://forms.gle/15kyv1ffx7tzTLhi8.
Analysts, however, caution that while the measures seem people-friendly, its sustainability depends on stronger revenue collection, accountability, and structural reforms. Without these, the reliefs may be merely symbolic, failing to generate tangible economic impact.
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