Nigeria will introduces new tax laws on January 1, 2026. President Bola Tinubu signs the Nigeria Tax Act and Tax Administration Act. These laws simplify rules and cut duplicate taxes. Moreover they widen the tax base fairly. Officials aim to block leaks and boost revenue without harming growth.
NACCIMA Applauds the Initiative
NACCIMA praises the reforms strongly. The group sees them as a landmark for revenue and sustainability. Dr. Jani Ibrahim, NACCIMA’s national president, highlights better tax administration.
The reforms lower company income tax to 25 percent from 30 percent. Larger firms benefit from this drop. However small companies enjoy full relief. Thresholds rise for exemptions. Businesses with turnover up to 100 million naira qualify.
In addition, Pastor Henry Adesaoye from Ondo State NACCIMA states the laws protect small firms. He notes they ensure rich people pay their share.
Key Benefits for Small Businesses
The acts exempt small companies from key taxes. Firms with low turnover pay zero percent income tax. This change helps them reinvest profits.
Furthermore the laws reduce compliance burdens. Businesses face less paperwork and clearer guidelines. As a result, small enterprises can focus on expansion.
Broader Economic Impact
These reforms foster trust and investment. NACCIMA urges wise use of tax funds for infrastructure. Road and power upgrades will help every industry.
However some people point out potential threats such as capital flight. Moreover its advantages outweigh others. For this reason, the new tax law promises more to small businesses. It moves the Nigerian economy forward in terms of equity and efficiency.
Outlook for Nigeria’s Economy
These laws promise stronger small businesses. They drive job creation and innovation. Moreover fair taxes foster sustainable growth. Nigeria positions itself as a business hub.
Success depends on implementation. Stakeholders must monitor progress closely.Therefore the 2025 tax reforms mark a pivotal shift. They empower small enterprises and uplift the nation.
