Tax Reform in Nigeria 2026: What It Means for Businesses and Individuals.

Nigeria's new tax laws take effect in January 2026. Get the complete guide on who pays what, business changes, and how to be informed.

The Federal Government of Nigeria has introduced a new set of tax laws that took effect on January 1, 2026.

This is the most significant change to the country's tax system in many years, introducing new rules for individuals and businesses. By the time you're done reading this article, you'll know what has changed. I would walk you through what's new in a way that actually makes sense - what it means for your personal and/or business finances and the simple steps you can take to stay compliant.

What's the 2026 Nigeria Tax Reform about?

In simple terms, the government is doing a massive cleaning of the tax system. For too long, the tax system has been messy, with duplicated taxes and confusing regulations, making it hard for taxpayers to understand what they need to do. This reform reorganises the entire tax structure to make life easier for everyone.

The reform has clear goals:

• Make taxation simpler.

• You won't need expert knowledge of tax law to understand your taxes.

• Make taxation fairer so that the right people pay the right amount.

• Widen the tax base so that more people pay taxes, reducing the burden on individuals.

• Go fully digital to make tax compliance less about paper and queues and more about structure and convenience.

There are four new tax laws.

The tax reform isn't a single law. It's a group of four new acts, each with a specific goal but working together:

The Joint Revenue Board Act (JRBA): This helps federal and state tax bodies work together, so you're less likely to be taxed twice for the same thing.

The Nigeria Tax Act (NTA): This explains what is taxed, who should pay, and how much they must pay.

The Nigeria Revenue Service Act (NRSA): This empowers the tax office (currently known as the FIRS) to perform its duties more effectively and fairly.

The Nigeria Tax Administration Act (NTAA): This focuses on the tax process - filing, paying, and managing your taxes online.

What does the reform mean for you?

The changes to the tax system have different impacts on salary earners and businesses.

If you are a salary earner

The most significant changes here are to the Personal Income Tax (PIT) system.

Clear exemption limit: If you earn ₦800,000 or less per year, you won't pay income tax. That's instant breathing room for low-income earners.

Electronic Money Transfer Levy (EMTL): This levy is now transferred exclusively to states as part of stamp duties. Small transfers are exempted, but large transfers may attract a small levy.

Consolidated Relief Allowance (CRA): Targeted reliefs now replace CRA. Instead of a blanket allowance, you now receive targeted relief. For example, you can claim 20% relief on your house rent (capped at ₦500,000).

Exemptions and deductions: Pension, housing, and health insurance contributions are fully deductible. The more you secure your future, the less you pay now.

If you're a business owner or a freelancer

If you run an SME, freelance, or manage a side hustle, the tax system now encourages you to grow without squeezing you dry.

Corporate Income Tax (CIT): Businesses with annual turnover below ₦50 million now pay no corporate tax. That's a big win for SMEs. 

You are taxed on the income you earn, not on the assets you own.

For example, if you have one million naira in your current account, there is no taxable income. But if that N1m is moved to a savings account and earns 10% interest, you'll pay tax on the 10% interest earned, not the initial N1m.

Value Added Tax (VAT): still at 7.5%, but invoicing goes digital, automating calculations. Essentials like food, healthcare, and education remain VAT-free.

Tax incentives: sectors such as tech, agriculture, and renewable energy receive special breaks to encourage growth.

Worthy of mention: things you should know about:

Gifts & inheritance: still untaxed.

FGN bonds & insurance: interest and payments remain tax-free.

Retirement savings: contributions, growth, and withdrawals - still tax-free.

Stocks: owning them isn't taxed, though selling for profit attracts tax on gains.

Rent relief: 20% off rent tax (up to ₦500,000).

The message is clear: invest, grow, and formalise your hustle without fear.

How to get ready for the new tax reform law

The time to prepare is now. Don't wait for the new year to scramble for compliance. Here's a simple checklist to get you ready.

Personal Checklist

• Get or update your Tax Identification Number (TIN).

• Track income and expenses digitally.

•  Organise payslips, invoices, and bank statements.

• Update bank details and contact info with your employer.

• Use reliefs: pension, housing, and health insurance.

Business Checklist

• Keep CAC registration up to date.

• Set up digital invoicing for VAT compliance.

• Review your structure for tax efficiency (sole proprietorship vs. limited liability company).

• Use compliant accounting software.

• Claim exemptions and allowances to reduce costs.

How Apex Network makes this transition easy

Taxes can be overwhelming, but the right tools can make it seamless.

The Apex Network is designed to help you easily trade all your crypto and gift cards for cash in Ghana, Kenya, Nigeria, Zambia, and Cameroon.

Smart spending & categories: automatically sort your transactions so you can clearly see deductible business expenses versus personal expenditures. It's like having a personal accountant in your pocket.

Separate business accounts: keep your hustle money separate from your personal funds to make tax filing far simpler.

Scheduled payments: never miss a VAT or PAYE deadline - set reminders and automate payments to avoid penalties.

Instant access to records: download account statements to file taxes and for audits.

Conclusion

Taxes are changing, but that doesn't have to mean confusion or panic. For you, the impact is clear: if you're an employee, your income tax brackets are easier to understand, with new reliefs and exemptions.

If you're a business owner or freelancer, you will finally benefit from a fairer system that taxes you only on what you truly earn - not what sits in your account.

By staying informed and preparing early, you'll avoid surprises and even save money. With a platform like the Apex Network app, compliance becomes less of a burden and more of a lifestyle upgrade.