Nigeria Unveils Guidelines for New Tax Regime Transition

The Federal Government of Nigeria, through the Ministry of Finance, has released guidelines to facilitate the transition to a new tax regime, set to take effect on January 1, 2026. Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, stated that the guidelines are designed to ensure a smooth transition without creating uncertainty for taxpayers.

The guidelines emphasize three key principles: clarity, fair administration, and certainty. Existing tax obligations, audits, and disputes will continue to be governed by the old tax law until the new regime is implemented.

The new tax structure will be based on the Tax Act 2025, which includes four major laws as part of Nigeria's tax reform agenda. The guidelines also clarify the treatment of income tax transactions and outline record-keeping requirements during the transition period.

Existing tax exemptions and incentives will remain valid until their expiration dates, while new requests for tax incentives will be assessed under the provisions of the Tax Act 2025.