The Presidential Fiscal Policy and Tax Reforms Committee has announced 50 key tax exemptions and reliefs set to take effect from January 1, 2026, under Nigeria’s new tax reform laws.
The new policy framework introduces significant reliefs aimed at easing the financial burden on low-income earners, small businesses, and vulnerable groups while simplifying the overall tax system to promote compliance and growth.
Among the major highlights are full exemptions for individuals earning the national minimum wage or less, as well as reduced PAYE taxes for those earning below ₦20 million annually. Small companies with turnover under ₦100 million will enjoy a 0% company income tax rate and exemption from development levies and withholding taxes.
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The reforms also extend VAT exemptions to basic food items, rent, education, health services, baby products, sanitary pads, and disability aids. Agricultural inputs and equipment, electric vehicles, and humanitarian supplies are also listed as VAT-free.
Speaking on the initiative, the Committee said the new framework aims to “promote fairness, stimulate business growth, and improve living standards by reducing the tax burden on everyday Nigerians.”
The Committee also launched the Influencing for Good campaign, encouraging citizens to nominate content creators who have been educating the public on the new tax reforms. The top 20 nominees will receive specialized training to help them share accurate and accessible tax information online.
Nominations close on November 9, 2025, via the link: https://forms.gle/15kyv1ffx7tzTLhi8.
The new tax regime is part of President Bola Tinubu’s fiscal reforms aimed at promoting inclusion, reducing poverty, and fostering long-term economic stability.
