Overview
- President Bola Tinubu signed four major tax reform bills into law on June 26 to simplify Nigeria’s complex tax framework.
- The package includes the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill and the Joint Revenue Board (Establishment) Bill.
- The new laws cut the corporate tax rate from 30 percent to 25 percent and exempt low-revenue small businesses from paying company tax.
- They create an autonomous Nigeria Revenue Service and establish a Joint Revenue Board to harmonize levies and resolve disputes among federal, state and local agencies.
- Economists say the overhaul could raise the country’s tax-to-GDP ratio and improve the business climate but warn its impact depends on effective revenue management.