A bill for the alteration of the 1999 Constitution to address multiple taxation and related objectives has passed the second reading at the National Assembly.
The update was given by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, on Friday through his official X handle.
According to him, specifically, the amendments seek to, among other things, clarify the taxation powers of federal, state, and local government to prevent overlap and conflict, define the scope of taxes and levies collectible by each tier of government, and prevent unlawful outsourcing of revenue collection.
If passed into law, it will also introduce a ceiling on the number of taxes on income, consumption, or property that may be imposed on a taxpayer, strike out nuisance taxes and prevent the harassment of persons for the purpose of tax collection, and enhance transparency, fiscal discipline, and accountability in the collection of taxes.
“Once successfully altered, this amendment will ensure that taxes are sustainably harmonised and the burden and related consequences removed once and for all.
“We are grateful to the National Assembly for this patriotic effort to address a critical problem in our tax system”, Oyedele said.
The Nigerian government announced that the four tax reform bills had been signed into law.
The reform consists of four key pieces of legislation: the Nigeria Tax Act, 2025, the Nigeria Tax Administration Act, 2025, the Nigeria Revenue Service (Establishment) Act, 2025, and the Joint Revenue Board (Establishment) Act, 2025.
These bills were signed into law by Bola Tinubu on 26 June 2025.
Within the suite, two of the laws (the Revenue Service Act and Joint Revenue Board Act) became effective immediately on the signing date.
The remaining two, the Tax Act and Tax Administration Act, are set to commence on 1 January 2026.
The reforms mark one of the most sweeping overhauls of Nigeria’s tax system in decades. They include the following:
A high exemption threshold for small businesses: for example, companies with annual turnover under N100 million and assets under N250 million may be exempt from corporate tax.
Personal income tax threshold changes: one report indicates that from 2026, earners below N800,000 annual income may pay no income tax.
Stricter and expanded compliance obligations: businesses will face tougher record-keeping requirements, mandatory e-invoicing for VAT-registered businesses, and more detailed transaction reporting.
A system-wide shift toward harmonisation of tax laws and administration across federal, state, and local levels, reducing duplication and improving ease of doing business.
