New tax regime designed to ease burden on workers, small businesses – Tegbe

Chairman of National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, says Nigeria’s new tax regime is designed to alleviate financial pressure on low-income earners and small-scale enterprises.

Tegbe stated this in an interview with newsmen on Sunday in Abuja.

Tegbe also said that the new tax law was designed to strengthen the country’s fiscal sustainability and economic competitiveness.

He described the current reforms as the most comprehensive overhaul of the nation’s tax architecture in decades, aimed at simplifying the system, ensuring fairness and stimulating sustainable economic growth.

According to him, the reforms are anchored on four landmark legislations: the Nigeria Tax Act, 2025; the Nigeria Tax Administration Act, 2025; the Nigeria Revenue Service (Establishment) Act, 2025; and the Joint Revenue Board of Nigeria (Establishment) Act, 2025.

Tegbe said that under the new framework, individuals earning less than ₦800,000 annually were now exempted from personal income tax.

He added that workers could now claim rent relief of up to 20 per cent, capped at ₦500,000, alongside other targetted incentives.

For the organised private sector, the NTPIC chairman explained that small businesses with annual revenue below ₦100 million and assets under ₦250 million are exempted from Company Income Tax (CIT).

He added that nano-enterprises earning less than ₦12 million annually had also been granted total exemption from income tax.

“These reforms are designed to make taxation simpler, fairer and more predictable for Nigerians.

“For most workers and small businesses, the new regime means paying the same or even lower taxes while operating within a more transparent system,” Tegbe said.

He also noted that the reforms would strengthen tax administration through the digitalisation of processes and improved coordination between the Nigeria Revenue Service, the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud.

Tegbe, however, emphasised that exemption from payment did not equate an exemption from documentation.

The NTPIC chairman urged taxpayers within the exempted thresholds to maintain proper records of their earnings and ensure they filed their returns regularly.

“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 added.