We wish to inform you that the President of the Federal Republic of Nigeria on June 6th, 2025 has signed into law four significant tax reform bills, marking a major milestone in Nigeria’s fiscal policy evolution.
The commencement date of these Acts will be January 1, 2026
The newly enacted laws are:
These reforms represent a comprehensive overhaul of Nigeria’s tax landscape, aiming to simplify compliance, strengthen revenue administration, improve transparency, and align the tax system with modern economic realities. Among other changes, the new legislation affects personal income tax rates and exemptions, tax administration processes, dispute resolution mechanisms, and the structure of the country’s tax authorities.
Here are highlights of the draft bills we have seen so far:
| Bill | Purpose | Key Personal Tax Implications |
| Nigeria Tax Bill 2024 | Consolidates six laws (including PITA) | · Exemption for minimum wage earners for personal income tax
· Replaced the old tax rate bands with new tax rate bands. · Digital assets and crypto gains are now taxable · ₦50m exemption for severance compensation |
| Nigeria Tax Administration Bill 2024 | Unified tax procedures nationwide | · Mandatory annual returns for individuals
· A taxpayer ID is required to operate a bank account |
| Nigeria Revenue Service Bill 2024 | Replaces FIRS with Nigeria Revenue Service (NRS) | · Centralised PAYE audits
· Enhanced cross-checks with immigration data |
| Joint Revenue Board Bill 2024 | Establishes a Joint Tax Board, Tax Appeal Tribunal, and Ombudsperson | · Improved dispute resolution mechanisms
· New channels for appeals and reviews |
Please note that the provisions of the signed Acts may differ slightly from provisions of the draft Bills summarised above. The versions presented to the President for assent were the harmonised drafts by both houses of the National Assembly.
We understand that these changes to the tax laws will have direct and far reaching implications for individuals, businesses, and employers, particularly our clients’ workforces and cross-border talent.
Our team is currently monitoring the publication of the final Acts and will share a detailed analysis of each law once the official versions of the Acts become publicly available.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Ade Ogunsanya
Partner, Country Lead: Global Mobility Tax & Immigration
Michael Omazi
Assistant Manager: Tax
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