• New fiscal laws will take effect in January 2026 under the national tax reform plan.
• Exemptions target low-income earners, small businesses, and key consumer goods.
• The reforms aim to boost revenue, local production, and investment.

Nigeria’s Presidential Committee on Fiscal Policy and Tax Reforms announced that beginning in January 2026, the government will implement new tax laws introducing 50 exemptions and relief measures for low-income citizens, middle-income taxpayers, and small businesses.

The measures are grouped into nine categories offering various benefits. Under the personal income tax (PAYE) category, individuals earning the minimum wage or an annual gross income of up to 1.2 million nairas (about $835) will be exempt from tax. Employers hiring and retaining new staff for at least three years will receive a 50% deduction on those salaries.

For corporate income tax, small businesses with annual turnover not exceeding 100 million nairas and total assets below 250 million nairas will be fully exempt. Agricultural companies will enjoy a five-year tax holiday.

Basic food products, educational materials and services, and pharmaceuticals will also be exempt from value-added tax (VAT).

In June 2025, President Bola Ahmed Tinubu signed four major tax reform laws intended to modernize Nigeria’s fiscal system. The government expects these reforms to increase tax revenue, improve the business environment, and stimulate both domestic and foreign investment.

These exemptions and relief measures are part of the 2024–2026 “Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP),” which outlines fiscal policies aimed at promoting local production and reducing import dependence.