Nigeria’s National Assembly has passed a bill to amend the 1999 Constitution, targeting multiple taxation and related issues. The move marks a significant step toward reforming the country’s tax system. According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, the amendments aim to clarify the taxation powers of federal, state, and local governments, prevent overlap and conflict, and define the scope of taxes and levies each tier may collect. The proposed changes also seek to set a ceiling on the number of taxes on income, consumption, or property that can be imposed on a taxpayer, eliminate nuisance taxes, and stop the harassment of individuals for tax collection purposes. Additionally, the amendments are intended to enhance transparency, fiscal discipline, and accountability in tax collection.
Oyedele thanked the National Assembly for addressing a critical problem in the tax system, stating that the amendments will ensure taxes are sustainably harmonized and that the burden and related consequences are removed once and for all. In a related development, the Nigerian government announced the signing into law of four tax‑reform bills: 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. President Bola Tinubu signed these reforms on 26 June 2025, marking one of the most sweeping overhauls of Nigeria’s tax system in decades.
The reforms introduce a high exemption threshold for small businesses—companies with annual turnover under N100 million and assets under N250 million may be exempt from corporate tax. Personal income‑tax thresholds are also expected to change, with earners below N800 000 annual income potentially paying no income tax from 2026. Moreover, the reforms impose stricter and expanded compliance obligations, including tougher record‑keeping requirements and mandatory e‑invoicing for VAT‑registered businesses.
The implementation of these reforms is expected to significantly impact Nigeria’s tax system by reducing duplication and improving the ease of doing business. With the Tax Act and Tax Administration Act set to commence on 1 January 2026, the country is poised to enter a new era of tax reform, aiming for a more streamlined and efficient tax environment. As the National Assembly continues work on the constitutional amendments, the successful passage of these reforms will be crucial for addressing long‑standing multiple‑taxation issues and promoting economic growth in Nigeria.
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