President Bola Ahmed Tinubu Signs 2025 Tax Bills Into Law + All You Need To Know

President Bola Ahmed Tinubu on Thursday June 26, 2025 officially signed four landmark Tax Reform Bills into law, marking a major overhaul of Nigeria’s tax system and revenue administration. The signing which took place at the Presidential Villa in Abuja will become effective starting from January 1, 2026, to give the public awareness and system alignment.

What the New Laws Include

The four bills are: 

Nigeria Tax Bill – consolidates existing tax laws into a simplified, user-friendly framework.

Nigeria Tax Administration Bill – standardizes tax collection procedures across all levels of government.

Nigeria Revenue Service (Establishment) Bill – replaces the Federal Inland Revenue Service (FIRS) with a more autonomous Nigeria Revenue Service.

Joint Revenue Board (Establishment) Bill – enhances coordination between federal and state tax authorities.

Key Highlights Small business relief: 

--Companies earning less than ₦50 million annually are now exempt from company income tax.

VAT restructuring: 

--30% of VAT revenue stays with the state that generates it.
--50% is shared equally among all states.
--20% is distributed based on population.

Digital transformation: 

---Emphasis on digital tax systems to improve transparency and efficiency.

Taxpayer protection:

 Introduction of a Tax Appeal Tribunal and Tax Ombudsman to handle disputes and complaints.