Key Takeaways.
1) Nigeria’s tax law is being fully reformed in 2026, combining multiple laws into a single, modern framework.
2) The FIRS is now the Nigeria Revenue Service (NRS), centralizing tax collection and simplifying compliance.
3) Mandatory Tax Identification Numbers (TINs) for all businesses, making compliance more critical.
What Are the Nigerian Tax Laws?
The Nigerian tax laws are a set of rules and regulations enacted by the National Assembly and signed into law by the President of Nigeria, providing the legal foundation to simplify compliance, enhance transparency, and improve tax regulation.
The Nigerian tax law, commonly referred to as NTA laws, defines how tax regulation is structured, administered, and enforced. The NTA laws were introduced because outdated tax laws can create inconsistencies over time, making compliance with tax regulations challenging for businesses.
What is the Nigerian Reformed Tax Law in 2025?
On 26 June 2025, the president of Nigeria signed into law tax reform legislation to streamline revenue administration, improve compliance, and support growth in the nation.
The four acts are
1. The Nigerian Tax Act,
2. The Nigeria Revenue Service Act,
3. The Tax Administration Act and
4. The Joint Revenue Board Act.
The Nigerian tax law.
The Nigerian tax law, which will take effect on the 1st of January 2026, integrates multiple tax laws into a unified system and revises employment tax administration to promote easier compliance and broader tax coverage.
It also introduces stronger enforcement measures against employers in Nigeria who inaccurately deduct taxes or fail to remit them on time.
What does the Nigerian Tax law mean for businesses in 2026?
In 2026, Nigeria’s tax law got a major refresh, and there are a few key changes every business in Nigeria should know
1) Support for Small Businesses:
Small businesses that earn ₦100 million or less per year are now exempt from Companies Income Tax (CIT), Capital Gains Tax (CGT), and the new Development Levy, as long as proper records are kept. This is so that small businesses can have support for growth.
2) A New Tax Authority:
The Federal Inland Revenue Service (FIRS) is now the Nigeria Revenue Service (NRS). The goal is to centralize tax collection, simplify processes, and cut down on bureaucracy for business and financial institutions
3) Tax ID is Mandatory:
Every formal business now needs a Tax Identification Number (TIN). For companies, this is the same as your CAC registration number. Without it, businesses could face restrictions in their operations.
4) The Development Levy:
Medium and large companies will now pay a 4% development levy on assessable profits. This replaces several older levies, including the Tertiary Education Tax, IT Levy, NASENI Levy, and Police Trust Fund Levy, making things simpler, though it does mean a new cost for bigger firms.
5) VAT & Digital Reporting:
VAT stays at 7.5%, but there’s a push toward digital compliance. E-invoicing and fiscalization are now mandatory for all VAT-registered businesses. Companies can claim back input VAT on purchases related to taxable supplies.
Stay Compliant with Youverify.
With stricter compliance, digital reporting, and mandatory Tax Identification Numbers, the Nigerian tax law requires businesses to stay ahead, which is crucial.
Youverify helps businesses verify Tax IDs, stay compliant, and stay aligned with the Nigerian tax regulations. To get started, Book a free demo today.
Frequently Asked Questions?
Q1. What’s the new tax law for 2026?
The new tax law for 2026 is the Nigerian Tax Act (NTA), which introduces a modernized approach to Tax regulation and standardizes tax compliance across Nigeria.
Q2. How does the new tax law affect businesses?
The NTA affects businesses by strengthening tax regulation, improving enforcement, and reducing ambiguity. Understanding what NTA means helps businesses prepare for compliance and avoid penalties.
Q3. What is the company income tax in Nigeria in 2026?
Company income tax remains applicable in 2026 under the NTA. However, the NTA meaning emphasizes stricter compliance, clearer reporting standards, and stronger oversight under updated Tax regulations.
Q4. What is the new tax regime in 2026?
The new tax regime in 2026 is a reformed and digitized system governed by the NTA. This regime prioritizes efficiency, transparency, and consistency in tax regulation.