From VAT to Income Tax: How Nigeria’s New Tax Rules Affect You

From VAT to Income Tax: How Nigeria’s New Tax Rules Affect You

In June 2025, president Bola Tinubu signed four new tax reform bills into law, bringing big changes to how taxes are managed in Nigeria. After the signing, Zacch Adedeji, the executive chairperson of the Federal Inland Revenue Service , now renamed the National Revenue Service , said the new laws would start on 1 January 2026. The reforms began in 2023, when Tinubu set up a committee shortly after taking office. He appointed Taiwo Oyedele , a tax expert from PriceWaterhouseCoopers, to lead the group. The committee of more than 80 members was asked to simplify taxes, merge revenue collection efforts, reduce tax evasion and avoidance, and increase tax income to at least 18% of Nigeria’s gross domestic product (GDP). The committee’s work resulted in four tax bills that replaced old tax laws and set up a new tax system. However, the bills faced strong pushback from various groups, including governors of 19 northern states and the Northern Elders Forum . Even the powerful National Economic Counc…