The federal government will begin adopting new tax regulations on January 1, 2026, with 50 exclusions and reliefs aimed at low-income earners, regular taxpayers, and small enterprises.

President Bola Tinubu signed the four-tax reform legislation into law on June 26th.

The legislation are: the Nigeria Tax Act, 2025 (NTA), the Nigeria Tax Administration Act, 2025 (NTAA), the Nigeria Revenue Service (Establishment) Act, 2025 (NRSEA), and the Joint Revenue Board (Establishment) Act, 2025.

According to Wale Edun, Minister of Finance and Coordinating Minister of the Economy, the new tax rules will stimulate company growth and increase Nigerians’ purchasing power.

In a post on X on Monday, Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, said the 50 tax exemptions and reliefs will benefit Nigerians under the new tax regime.

“From 1 January 2026, the new tax laws will provide many reliefs and exemptions for low-income earners, average taxpayers, and small businesses,” Oyedele said.

Here is a full list of the exemptions and reliefs:

PERSONAL INCOME TAX (𝐏𝐀𝐘𝐄)

1. Individuals earning the national minimum wage or less (exempt)
2. Annual gross income up to N1,200,000 (about N800,000 taxable income) is exempted.
3. Reduced PAYE tax for those earning N20 million annually
4. Gifts (exempt)

ALLOWABLE DEDUCTIONS AND RELIEFS FOR INDIVIDUALS

5. Pension contribution to pension fund administrators (PFA)
6. National health insurance scheme
7. National housing fund (NHF) contributions
8. Interest on loans for owner-occupied residential housing
9. Life insurance or annuity premiums
10. Rent relief – 20 percent of annual rent (up to N500,000)

PENSIONS AND GRATUITIES

11. Pension funds and assets under the Pension Reform Act (PRA).
12. Pension, gratuity or any retirement benefits granted in line with the PRA
13. Compensation for loss of employment up to N50 million

CAPITAL GAINS TAX

14. Sale of an owner-occupied house
15. Personal effects or chattels worth up to N5 million
16. Sale of up to two private vehicles per year
17. Gains on shares below N150 million per year or gains up to N10 million
18. Gains on shares above exemption threshold if the proceed is reinvested
19. Pension funds, charities, and religious institutions (non-commercial)

COMPANIES INCOME TAX

20. Small companies (turnover not more than N100 million and fixed assets not more than N250 million) pay zero percent tax
21. Eligible (labelled) startups
22. Compensation relief: 50 percent additional deduction for salary increases, wage awards, or transport subsidies for low-income workers
23. Employment relief: 50 percent deduction for salaries of new employees hired and retained for at least three years.
24. Five-year tax holiday for agricultural businesses (crop production, livestock, dairy, etc.)
25. Gains from investment in labelled startups by venture capitalist, private equity fund, accelerators or incubators.

DEVELOPMENT LEVY

26. Small companies are exempted from 4 percent development levy

𝐖ITHHOLDING TAX

27. Small companies, manufacturers and agricultural businesses are exempted from withholding tax deduction on income
28. Small companies are exempt from deduction on payments to suppliers

𝐕ALUE ADDED TAX (𝐕𝐀𝐓) – (0% OR EXEMPT)

29. Basic food items – zero percent VAT
30. Rent – exempt
31. Education services and materials – zero percent VAT
32. Health and medical services
33. Pharmaceutical products – zero percent VAT
34. Small companies (less than N100m turnover) – exempt from charging VAT
35. Diesel, petrol, and solar power equipment – VAT suspended or exempted
36. Refund of VAT on assets and overheads used to produce VATable or zero percent VAT goods and services.
37. Agricultural inputs – fertilisers, seeds, seedlings, feeds, and live animals
38. Purchase, lease or hire of agricultural equipment
39. Disability aids – hearing aids, wheelchairs, braille materials
40. Transport – shared passenger road transport (non-charter)
41. Electric vehicles and parts – exempt
42. Humanitarian supplies – exempt
43. Baby products
44. Sanitary towels, pads or tampons
45. Land and building

𝐒TAMP DUTIES (e𝐱𝐞𝐦𝐩𝐭)

46. Electronic money transfers below N10,000
47. Salary payments
48. Intra-bank transfers
49. Transfers of government securities or shares
50. Documents for transfer of stocks and shares

INFLUENCERS TO BE TRAINED ON ACCURATE TAX EDUCATION

Oyedele also urged Nigerians to nominate content creators who have been educating their audiences on the country’s new tax reform laws, as well as those they believe should take on the task.

He said that the top 20 creators with the most nominations will receive special training to assist them communicate accurate, balanced, and beneficial tax information with their followers.

“Misinformation spreads fast, often to the author’s benefit but to the audience’s loss. Accurate information may travel slower, but it empowers everyone, and earns lasting trust,” he said.

The fiscal policy chairman stated that nominations can be submitted by tagging or mentioning favoured influencers, or by completing the nomination form at forms.gle/15kyv1ffx7tzTL, and that the process will end on November 9, 2025.