New Tax Regime To Ease Burden On Workers, Small Businesses ––Tegbe

The Chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, has affirmed that Nigeria’s new tax regime is designed to ease the burden on workers and small businesses while strengthening the country’s fiscal sustainability and economic competitiveness.

Speaking at the BusinessDay Tax Reform Conference 2026, themed “Navigating the New Tax Regime: What It Means for Your Wallet,” Tegbe described the reforms as the most comprehensive overhaul of Nigeria’s tax architecture in decades, aimed at simplifying taxation, improving fairness, and encouraging economic growth.

According to him, the reforms, anchored on four landmark 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 introduce targeted reliefs for individuals and small businesses.

Under the new framework, individuals earning less than ₦800,000 annually will pay no personal income tax, while workers can claim rent relief of up to 20 percent, capped at ₦500,000, among other reliefs.

Small businesses will also benefit significantly, with companies earning below ₦100 million in annual revenue and with assets under ₦250 million exempted from Company Income Tax, while nano-enterprises earning below ₦12 million annually are exempted from income tax.

He however underscored the importance of proper documentation of earnings and subsequent filing of returns, even for those who fall within the threshold exempted from income tax.

“These reforms are designed to make taxation simpler, fairer, and more predictable for Nigerians,” Tegbe said. “For most workers and small businesses, the new regime means paying the same or even lower taxes while operating within a more transparent system.”

The reforms also strengthen Nigeria’s tax administration through improved coordination among key institutions, including the Nigeria Revenue Service, the Joint Revenue Board of Nigeria, the Tax Appeal Tribunal, and the Office of the Tax Ombud, while accelerating the digitalization of tax processes.

Tegbe noted that beyond improving revenue efficiency, the reforms aim to create a tax system that supports enterprise, investment, and long-term economic growth.

“The ultimate objective is to build a tax system that works for both government and citizens, one that supports development while protecting the pockets of ordinary Nigerians,” he concluded

Other Dignitaries present at the Conference include  Olusegun Adesokan, the Executive Secretary of the Joint Revenue Board; Micheal Ango, the Acting Exectuve Chairman of FCT Internal Revenue Service, Prof  Uwaleke  Uche, Dr Sam Amadi amongst others.