New tax regime to lighten the burden on workers, small businesses…

Chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, has said Nigeria’s new tax regime is structured to reduce the financial burden on workers and small businesses, while strengthening the country’s fiscal stability and economic competitiveness.

Speaking at the BusinessDay Tax Reform Conference 2026 themed “Navigating the new tax regime: what it means for your wallet”, Tegbe described the reforms as the most far-reaching restructuring of the Nigerian tax system in decades. He noted that the initiative aims to streamline tax processes, promote fairness and create an environment that supports economic expansion.

According to him, the reforms are anchored on four major legislations – the Nigeria Tax Act, 2025, the Nigeria Tax Administration Act, 2025, the Nigeria Revenue Service (Establishment) Act, 2025 and the Joint Revenue Board of Nigeria (Establishment) Act, 2025 – which collectively introduce a more coordinated and transparent tax administrative framework.

0New tax regime to ease burden on workers and small businesses — TegbeTegbe explained that the new structure provides targeted relief for individuals and small businesses, ensuring that low-income workers and emerging businesses are not overburdened by taxation.

Under the new regime, individuals earning less than ₦800,000 per year will be exempted from personal income tax. Workers will also benefit from a rent reduction allowance of up to ⁹ìì capped at ₦500,000, among other incentives designed to ease financial pressure on families.

Small businesses are equally positioned to benefit from the reforms. Companies with an annual turnover of less than ₦100 million and assets of no more than ₦250 million will be exempt from corporate income tax, while nano-enterprises with annual profits of less than ₦12 million will not be required to pay income tax.

Despite these relief measures, Tegbe stressed that individuals and businesses within the exempted thresholds must still maintain adequate documentation of their earnings and comply with the obligation to file tax returns.

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He noted that in addition to tax relief, the reforms will also strengthen institutional coordination among key agencies including the Nigeria Revenue Service, the Joint Revenue Board of Nigeria, the Tax Appeal Tribunal and the Office of the Tax Ombud. He added that greater digitalisation of tax processes will improve transparency, efficiency and compliance across the system.

According to Tegbe, the broader goal of the reforms is to create a tax structure that supports business development, encourages investment and improves Nigeria’s ability to mobilize revenue for national development without imposing undue stress on citizens.

“The goal is to build a tax system that works for everyone, a system that supports government in achieving development while protecting the financial well-being of Nigerian citizens,” he said.

Other dignitaries at the conference included the Executive Secretary of the Joint Revenue Board of Nigeria, Olusegun Adesokan; Interim Executive Chairman of the FCT Internal Revenue Service, Michael Ango; renowned economist Uche Uwaleke; and policy expert Sam Amadi, among others, who also contributed to discussions on the implications of the new tax framework for businesses and families.

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