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4w ago

Tinubu Enacts Four Bills Overhauling Nigeria’s Tax System

The legislation streamlines tax administration, reduces corporate levies to 25 percent, exempts small businesses from company tax.

Economic reform has been a key, if controversial, pillar of Nigerian President Bola Tinubu's tenure

Overview

  • President Bola Tinubu signed four major tax reform bills into law on June 26 to simplify Nigeria’s complex tax framework.
  • The package includes the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill and the Joint Revenue Board (Establishment) Bill.
  • The new laws cut the corporate tax rate from 30 percent to 25 percent and exempt low-revenue small businesses from paying company tax.
  • They create an autonomous Nigeria Revenue Service and establish a Joint Revenue Board to harmonize levies and resolve disputes among federal, state and local agencies.
  • Economists say the overhaul could raise the country’s tax-to-GDP ratio and improve the business climate but warn its impact depends on effective revenue management.