Nigeria’s tax laws take shape as FG issues transition directives – THIS UPDATE

The federal government has published general guidelines for the implementation of the 2025 tax laws, which set out how taxpayers, professionals and tax authorities should transition from the repealed tax laws to the new tax framework which comes into force from 1 January 2026.

The guidelines, issued by the Federal Ministry of Finance, are intended to provide guidance on a series of issues arising from the transition from the old regime to the new one.

They cover four laws that make up the Tax Acts 2025: the Nigeria Revenue Service (Establishment) Act, the Nigeria Tax Act, the Nigeria Tax Administration Act and the Joint Revenue Board (Establishment) Act, each of which applies from its commencement date as enacted.

The Nigeria Tax Act, 2025 specifically comes into force from January 1, 2026.

Under this framework, tax liabilities, assessments, audits, investigations, disputes and enforcement actions related to periods prior to that date will continue to be handled under the repealed tax laws.

Similarly, returns for accounting periods ending before January 1, 2026 will be filed under the previous tax laws, while returns due from January 1, 2026 onwards will be handled under the new framework.

The document also addresses the treatment of income taxes, transaction taxes, development levies, tax incentives, exemptions, recordkeeping requirements and transactions spanning both the old and new tax regimes.

Existing tax incentives and exemptions granted under the repealed laws will remain in effect until their expiration date. New applications and pending requests, however, will be considered under the provisions of the 2025 tax laws.

Speaking on the release of the Guidelines, the Minister of Finance and Coordinating Minister for Economy, Taiwo Oyedele, said the document provides a framework for managing transitional matters, while ensuring that new laws are not applied retrospectively.

He described the Tax Laws 2025 as a significant milestone in Nigeria’s tax reform programme, stressing that the guidelines set out how existing obligations, ongoing matters and future transactions will be dealt with under the new regime.

The head of the Information and Public Relations Unit at the Ministry of Finance, Efe Ovuakporie, in a statement on Thursday, quoted the minister as saying that the guidelines are anchored on three key principles: clarity, fairness and administrative certainty.

The Guidelines are intended to promote uniform implementation and support effective administration within the Nigeria Tax Service, State Tax Services, FCT Internal Revenue Service, Local Government Tax Committees, tax practitioners and taxpayers nationwide.

Government has reaffirmed its commitment to building a transparent, efficient and modern tax system that supports economic growth, strengthens tax administration, encourages voluntary compliance and improves the investment climate in Nigeria.