Chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, has stated that Nigeria’s new tax regime is designed to reduce the financial burden on workers and small businesses while strengthening the nation’s fiscal stability and economic competitiveness.
Tegbe made this known at the BusinessDay Tax Reform Conference 2026, themed “Navigating the New Tax Regime: What It Means for Your Wallet.” He described the reforms as the most comprehensive restructuring of Nigeria’s tax system in decades, aimed at simplifying tax processes, promoting fairness, and creating an enabling environment for economic growth.
According to him, the reforms are anchored on four major legislations: the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025, and the Joint Revenue Board of Nigeria (Establishment) Act 2025. Collectively, the laws are expected to introduce a more coordinated and transparent framework for tax administration across the country.
Tegbe explained that the new structure provides targeted reliefs for individuals and small enterprises, ensuring that low-income earners and emerging businesses are not overburdened by taxation.
Under the new regime, individuals earning below ₦800,000 annually will be exempted from personal income tax. Workers will also benefit from a rent relief allowance of up to 20 per cent, capped at ₦500,000, among other incentives designed to reduce financial pressure on households.
Small businesses are also expected to benefit significantly. Companies with annual revenues below ₦100 million and assets not exceeding ₦250 million will be exempted from Company Income Tax, while nano-enterprises with annual earnings below ₦12 million will not be required to pay income tax.
Despite the relief measures, Tegbe noted that individuals and businesses within the exempted thresholds must still maintain proper financial records and comply with the requirement to file tax returns.
He further explained that the reforms will 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. Increased digitalisation of tax processes, he added, will enhance transparency, efficiency and compliance within the system.
Tegbe said the broader objective of the reforms is to establish a tax structure that supports enterprise development, encourages investment and improves Nigeria’s capacity to mobilise revenue for national development without placing excessive strain on citizens.
“The goal is to build a tax system that works for everyone—one that supports government in delivering development while also protecting the financial wellbeing of ordinary Nigerians,” he said.
Other participants at the conference included the Executive Secretary of the Joint Revenue Board of Nigeria, Olusegun Adesokan; Acting Executive Chairman of the FCT Internal Revenue Service, Michael Ango; economist Uche Uwaleke; and policy expert Sam Amadi, among others, who contributed to discussions on the implications of the new tax framework for businesses and households.
