The Chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, has said Nigeria’s new tax regime is designed to ease the financial burden on workers and small businesses while strengthening the country’s fiscal stability and overall economic competitiveness.
Tegbe made the remark while speaking 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 significant overhaul of Nigeria’s tax system in decades, noting that the initiative seeks to simplify tax processes, promote fairness, and create an enabling environment for economic growth.
According to him, the reforms are backed by 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. Together, these laws are expected to establish a more coordinated and transparent framework for tax administration across the country.
Tegbe explained that the new system introduces targeted reliefs for individuals and small businesses to ensure that low-income earners and emerging enterprises are not excessively burdened by taxation.
Under the new regime, individuals earning below ₦800,000 annually will be exempt 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 aimed at easing financial pressure on households.
Small businesses are also expected to gain from the reforms. Companies with annual revenues below ₦100 million and assets not exceeding ₦250 million will be exempt from Company Income Tax. In addition, nano-enterprises with annual earnings below ₦12 million will not be required to pay income tax.
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Despite these exemptions, Tegbe emphasised that individuals and businesses within the qualifying thresholds must still maintain proper financial records and comply with the requirement to file tax returns.
He further noted that the reforms will enhance institutional coordination among key agencies such as the Nigeria Revenue Service, the Joint Revenue Board of Nigeria, the Tax Appeal Tribunal, and the Office of the Tax Ombud.
According to him, increased digitalisation of tax processes will also improve transparency, efficiency, and compliance across the system.
Tegbe added that the broader objective of the reforms is to create a tax structure that encourages enterprise development, attracts investment, and improves Nigeria’s ability to generate 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 dignitaries present at the conference included 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 also contributed to discussions on the implications of the new tax framework for businesses and households.
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