Introduction
On June 26th, 2025, President Bola-Ahmed Tinubu signed into law a suite of four tax reform statutes, including:

a) The Nigeria Tax Act, 2025 (NTA), which repeals and codifies existing tax laws, and amends various fiscal provisions to establish a single comprehensive legal framework for taxation in Nigeria;

b) The Nigeria Tax Administration Act, 2025 (NTAA), which provides the legal basis for the assessment, collection, and accounting of revenues at all government tiers;

c) The Nigeria Revenue Service (Establishment) Act, 2025 (NRSA), which replaces the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service (NRS), expanding its powers and functions, including tax collection efforts at the subnational level; and

d) The Joint Revenue Board of Nigeria (Establishment) Act, 2025 (JRBA), which establishes the Joint Revenue Board, Tax Appeal Tribunal, and Office of the Tax Ombuds to enhance coordination, harmonisation, and better dispute resolution in tax administration;

collectively representing the most comprehensive overhaul of Nigeria’s tax framework in decades.

Particularly, the NTA (or “the new Act”) stands out for consolidating several major tax laws into a single, unified legal framework. The Act repeals and codifies existing legislation, including the Companies Income Tax Act, Personal Income Tax Act, Capital Gains Tax Act, Petroleum Profits Tax Act/Chapter 4 of the Petroleum Industry Act, Casino Act, Industrial Development (Income Tax Relief) Act, Stamp Duties Act, and other enactments. The goal is to streamline administration, enhance efficiency, and reduce fragmentation across the tax system.

This article focuses specifically on the NTA, examining key changes and improvements on the taxation of income and profits of individuals and businesses, including capital gains and petroleum profits. It also explores the practical and commercial implications of these reforms for taxpayers and businesses.

1. Personal Income Tax (PIT)

1.1. Introduction of Income Tax Exemption Threshold and New Progressive Rates

The NTA introduces a 0% personal income tax rate for individuals who earn between N0 to N800,000 per annum. This significant reform aims to relieve the tax burden on low-income earners and the majority of informal sector workers by exempting them from personal income tax. Additionally, the NTA revises the applicable rates and income bands for tax payers, which ultimately results in a lower overall tax liability for most taxpayers, including a few higher-income earners, when compared to the previous regime under the old PITA.