Nigeria’s Federal Government is promoting the Nigeria Tax Act 2026, a new law that consolidates over 60 existing taxes into a single, simplified framework.
According to Professor Taiwo Oyedele, Chairman of the Presidential Tax Reform Committee, the Act is designed to be pro-poor and pro-growth, providing zero or reduced taxes for 97% of Nigerians, including small businesses with an annual turnover of less than ₦120 million.
Key takeaways from the government’s public engagement session with journalists include:
Tax IDs are not a new burden.
The new Tax Identification Number (Tax ID) is simply a verification tool, and anyone with a NIN-linked bank account is already compliant.
A 5% fuel surcharge will fund roads.
A long-standing 5% fuel surcharge, which has been in place since the FERMA Act of 2007, will now be used to fund road construction and maintenance.
Fiscal health is improving.
While Nigeria spent 97% of its revenue on debt servicing in 2022, reforms are already showing results.
The Nigerian National Petroleum Corporation (NNPC) has remitted more revenue in the first quarter of 2025 than it did in all of 2024.
Journalists are tasked with public enlightenment.
Reporters were encouraged to educate the public on the new tax law’s benefits and to hold the government accountable for the transparent use of tax revenues.