President Tinubu Signs The 4 Tax Reforms Bills Into Law

President Tinubu has officially signed the four tax reforms bills into law.

The four bills are:
-The Nigeria Tax Bill
-The Nigeria Tax Administration Bill
-The Nigeria Revenue Service (Establishment) Bill
-The Joint Revenue Board (Establishment) Bill

Recall, the Senate has deliberated on this bill and passed it into law for the asent of the president.

Here are the key advantages of the recently signed tax reform bills in Nigeria:

Simplified tax administration
Creation of the Nigeria Revenue Service (NRS) replaces multiple collection agencies, streamlining tax filing and reducing overlapping levies.

Relief for low‑income earners
Personal Income Tax (PAYE) exemption for annual incomes up to ₦1 million (₦83 k/month), while those earning up to ₦1.7 million/month get reduced rates. Essential goods like food, healthcare, education, electricity, and public transport are zero-rated for VAT.

SME and micro‑business incentives
Threshold for SME registration raised from ₦25 million to ₦50 million in annual turnover, with full exemption from Company Income Tax (CIT), VAT, and withholding tax—supporting the backbone of the Nigerian economy.

VAT ease & export encouragement
Exports of goods, services, and IP are zero-rated for VAT. Input VAT credits on purchases are now clearer—reducing production costs.

Remote work support
Nigerians working remotely for foreign employers (outside Nigeria) are exempt from PIT—encouraging participation in the global digital economy.

Benefits for States & Federalism

New VAT-sharing formula
VAT distribution now gives Federal Government 10%, States 55%, Local Governments 35%. States under “place of consumption” model will see increased revenue—boosting fiscal autonomy.

State revenue empowerment
States gain authority over LLP taxes, lottery/gaming levies, stamp duties, and receive 5% of federal VAT. Bonds issued by states are also tax-exempt—making state finance more independent.

Fiscal coordination via Joint Revenue Board
Harmonised tax administration and audit frameworks across federal, state, and local levels—with the establishment of the Joint Revenue Board ensuring stronger intergovernmental collaboration.

Transparency, Dispute Resolution & Tax Fairness

Office of Tax Ombudsman & Appeal Tribunals
Provides a streamlined, 14‑day window for resolving taxpayer grievances, reducing enduring disputes and arbitrary assessments.

Nuisance tax repeal & progressive tax structure
More than 50 redundant levies eliminated. Tax rates for PIT, VAT, and capital gains restructured progressively—shielding low-income earners.

Increased transparency
Establishment of the Tax Ombudsman and harmonised tax laws fosters accountability across MDAs, building trust with taxpayers.

Boost to Revenue & Economic Growth

Wider tax base, higher compliance
Digital filing systems and single-windows reduce compliance costs, encourage formalisation and broaden the tax net—currently low at 10.8% of GDP.

Stimulus for investment and job creation
Tax credits, CIT reduction from 30% to 25%, exemption for remote service PIT incentives, and export reliefs help boost business, drive employment, and attract capital.

Oil sector stimulus
New executive order grants up to 20% tax credits to oil companies that achieve cost-efficiencies—intensifying productivity in a vital revenue stream.