Abstract

Nigeria’s fiscal situation went through a dramatic change on June 26, 2025, when President Bola Ahmed Tinubu signed four historic Tax Reform Bills into law. The goals of this all-encompassing reform are to increase the tax base, simplify tax administration, and conform to international best practices. The creation of a new administrative body, the Nigeria Revenue Service (NRS), and the unification of more than a dozen federal tax laws into a single statute, the Nigeria Tax Act (NTA), are two significant changes. With higher rates for high earners and a higher exemption threshold for low earners, the reform establishes a progressive personal income tax system. A new 4% Development Levy is implemented, and the Capital Gains Tax (CGT) for businesses is increased from 10% to 30%. A step towards a more efficient and equitable tax system is also indicated by the reform, which raises the exemption threshold for small businesses and brings multinational corporations into line with global minimum tax principles.

Keywords:Tax; Reform; Personal income tax; Corporate tax; Nigeria