Nigeria to Implement New Tax Regime in 2026, Promising Reduced Tax Burdens

The Nigerian government, through the Fiscal Policy Tax Reform Committee led by Taiwo Oyedele, plans to implement a new tax regime starting January 1, 2026. The reform aims to significantly reduce tax obligations for 98% of Nigerian workers and exempt 97% of small businesses from certain taxes.

Large businesses will also benefit from lower tax rates. The initiative seeks to drive economic growth, ensure prosperity is shared across the board, and create a business-friendly environment.

The reform aligns with President Bola Tinubu's broader strategy to restructure Nigeria's tax system.