The Chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, has stated that Nigeria’s newly introduced tax regime is structured to ease the financial burden on workers and small businesses while strengthening the country’s fiscal sustainability and economic competitiveness.
Tegbe made the disclosure while speaking at the BusinessDay Tax Reform Conference 2026, themed “Navigating the New Tax Regime: What It Means for Your Wallet.” He described the reform as the most comprehensive overhaul of Nigeria’s tax architecture in decades, aimed at simplifying the tax system, improving fairness, and stimulating economic growth.
According to him, the reforms are 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. These laws introduce targeted reliefs designed to support individuals and small-scale enterprises.
Under the new framework, individuals earning less than ₦800,000 annually will be exempted from personal income tax. Workers will also be able to claim rent relief of up to 20 percent, capped at ₦500,000, among other incentives.
Small businesses are expected to benefit significantly from the reforms. Companies generating less than ₦100 million in annual revenue and with assets below ₦250 million will be exempt from Company Income Tax, while nano-enterprises earning below ₦12 million annually will also be exempt from income tax.
However, Tegbe emphasized the importance of proper documentation of earnings and the filing of tax returns, even for individuals and businesses that fall within the exemption threshold.
“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.”
He further noted that the reforms would strengthen tax administration through improved coordination among key institutions such as the Nigeria Revenue Service, Joint Revenue Board of Nigeria, Tax Appeal Tribunal, and the Office of the Tax Ombud, while accelerating the digitalisation of tax processes.
Tegbe added that beyond improving revenue efficiency, the reforms are designed to promote enterprise, encourage investment, and support 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 said.
Other dignitaries present at the conference included the Executive Secretary of the Joint Revenue Board, Olusegun Adesokan; Acting Executive Chairman of the FCT Internal Revenue Service, Michael Ango; Uche Uwaleke; and Sam Amadi, among others.