By Accountability and policy monitoring

When history remembers this era, it will record that under President Bola Ahmed Tinubu, Nigeria executed one of the most progressive and people-centred tax overhauls in its democratic journey not merely to boost revenue, but to bring justice to those long crushed under the weight of an inequitable system.

Signed into law on June 26, 2025, the four new Tax Reform Acts the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA) represent more than a bureaucratic upgrade. They constitute a bold restructuring of Nigeria’s fiscal architecture, removing roadblocks for small businesses, increasing fairness for workers, and reinforcing the government’s social contract with the people.

Gone are the days when being a small business owner or a low-income earner in Nigeria meant paying disproportionately for a system that gave little in return. With the new Tax Acts, the federal government has flipped the script: the tax system now functions more as a ladder of opportunity than a hammer of oppression.

One of the most symbolic features of this reform is the exemption of individuals earning up to ₦800,000 annually or approximately ₦250,000 monthly from paying personal income tax. This single act removes the burden from millions of workers and low-income earners across the country, freeing up disposable income, increasing household consumption, and providing long-overdue economic breathing room.

On the business front, companies with turnover of ₦100 million or less are now exempted from Company Income Tax (CIT). Previously, only those earning below ₦25 million enjoyed such relief. This expansion captures a wider array of Nigeria’s vibrant SMEs businesses that drive employment, innovation, and local productivity. By this measure, Nigeria has now become, in the words of policy thinkers, a tax haven for the smallest, where growth is encouraged, not punished.

To complement this people-first vision, the reforms abolish the long-criticised “minimum tax” which penalised companies even when they operated at a loss. This was a cruel contradiction taxing failure. With this repeal, the government signals a deeper understanding of business cycles and the need to protect entrepreneurship during hard times.

The new laws also redefine the nation’s tax philosophy with strategic global alignment. Multinational corporations with turnover exceeding ₦50 billion or €750 million are now subject to a 15% minimum effective tax rate on net income, ensuring Nigeria gets its fair share of global profit flows. In doing so, the laws close key loopholes that allowed foreign companies to shift profits abroad, evading their civic obligations.

Spearheading the technical and institutional execution of these reforms is the Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji. Under his watch, the FIRS now renamed the Nigeria Revenue Service (NRS) has been rebranded into a proactive, citizen-responsive institution. Dr. Adedeji has not only driven compliance but is championing a new tax culture built on trust, fairness, and shared prosperity. His leadership reflects the administration’s core ideological commitment to reform with compassion and competence.

The Acts also provide additional incentives for companies to hire more Nigerians. Businesses that increase their employment of low-income workers or raise wages between 2023 and 2025 will enjoy special deductions, effectively rewarding companies for putting more money in the hands of the people.

The agriculture sector often neglected in fiscal planning receives a full sweep of exemptions across crop production, animal husbandry, dairy processing, cocoa, forestry, edible oil, and more. This not only stimulates food security and export potential but gives rural Nigeria a reason to believe again in the promise of governance.

Perhaps the most philosophical contribution of the reform is that it plugs tax leakages without raising tax rates. Nigeria has honoured its covenant not to increase taxes, yet revenue will rise through better collection, digital enforcement, and broader coverage. Provisions such as the Controlled Foreign Corporation (CFC) rule and the top-up tax mechanism ensure that no revenue due to Nigeria is left behind.

In every clause, these reforms are pro-people. From exempting small companies and shielding income below ₦250k from taxation, to making the wealthy pay a fairer share, the message is clear: taxation in Nigeria is no longer a punishment it is now a platform for justice.

President Tinubu’s administration has shown that policy can be both firm and fair. By boldly restructuring Nigeria’s tax laws, the government is not only stimulating economic growth but also rekindling public faith in governance. This is not just reform. It is the restoration of equity, accountability, and hope.

The Tax Reform Acts are not the end of the story. But they are a compelling new beginning one in which Nigeria’s poorest are not left behind, its businesses are not overburdened, and its leaders are judged not just by what they collect, but by what they protect.

And in this new chapter, we must recognise that justice for the people begins with fairness in taxation, and Nigeria, at last, has answered that call.

At Accountability and Policy Monitoring, we assess what government policies mean for real people. We track promises, spotlight outcomes, and push for reforms that truly serve Nigerians fairly, practically, and urgently.