FG unveils sweeping tax reforms to ease burden on Nigerians - Newstrends
Connect with us

metro

FG unveils sweeping tax reforms to ease burden on Nigerians

Published

on

Proposed tax reforms bills

FG unveils sweeping tax reforms to ease burden on Nigerians

The Federal Government has announced a comprehensive overhaul of Nigeria’s tax system, introducing 50 targeted exemptions and reliefs aimed at easing the financial burden on low-income earners, middle-class taxpayers, and small businesses. The new tax laws will take effect from January 1, 2026.

The reforms are encapsulated in four landmark legislations: the Nigeria Tax Act, 2025 (NTA); Nigeria Tax Administration Act, 2025 (NTAA); Nigeria Revenue Service (Establishment) Act, 2025 (NRSEA); and the Joint Revenue Board (Establishment) Act, 2025 (JRBEA).

Economic Boost and Social Protection

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that the new tax regime is designed to stimulate economic growth, enhance business development, and increase the purchasing power of Nigerians.

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, echoed the sentiment in a post on X, saying the reforms will deliver meaningful relief to vulnerable groups and small enterprises.

“From 1 January 2026, the new tax laws will provide many reliefs and exemptions for low-income earners, average taxpayers, and small businesses,” Oyedele said.

Highlights of the 50 Tax Exemptions and Reliefs

Personal Income Tax (PAYE):

  • Exemption for individuals earning the national minimum wage or less
  • Tax-free status for annual gross income up to ₦1.2 million
  • Reduced PAYE for earners of ₦20 million annually
  • Gifts exempt from taxation

READ ALSO:

Allowable Deductions:

  • Pension, health insurance, and housing fund contributions
  • Interest on loans for owner-occupied housing
  • Life insurance premiums
  • Rent relief up to ₦500,000
  • Retirement benefits and compensation for job loss up to ₦50 million

Capital Gains Tax:

  • Exemption on sale of owner-occupied homes and personal effects under ₦5 million
  • Tax-free sale of up to two private vehicles annually
  • Gains on shares below ₦150 million or reinvested proceeds
  • Exemptions for pension funds, charities, and religious institutions

Companies Income Tax:

  • Zero percent tax for small companies (turnover ≤ ₦100 million)
  • Tax holidays for agricultural businesses
  • Reliefs for startups and employment incentives
  • Additional deductions for salary increases and transport subsidies

Development Levy and Withholding Tax:

  • Small companies exempt from 4% development levy
  • Exemptions on withholding tax for manufacturers, agric businesses, and supplier payments

Value Added Tax (VAT):

  • Zero VAT on basic food, education, health services, pharmaceuticals, baby products, sanitary items, and disability aids
  • Exemptions for rent, transport, electric vehicles, humanitarian supplies, and agricultural inputs
  • Small companies exempt from charging VAT

Stamp Duties:

  • Exemptions on electronic transfers below ₦10,000, salary payments, intra-bank transfers, and securities transactions

Influencer Training for Tax Education

To combat misinformation and promote public understanding of the reforms, Oyedele announced a nationwide initiative to train 20 content creators on accurate tax education. Nigerians are encouraged to nominate influencers by tagging them or submitting names via the official form before November 9, 2025.

“Misinformation spreads fast, often to the author’s benefit but to the audience’s loss. Accurate information may travel slower, but it empowers everyone, and earns lasting trust,” Oyedele said.

The new tax regime marks a significant shift in Nigeria’s fiscal policy, aiming to foster inclusivity, economic resilience, and transparency in tax administration.

FG unveils sweeping tax reforms to ease burden on Nigerians

Loading

metro

Lagos Club Robbery: Police Arrest Suspect After N5m Bounty

Published

on

Lagos Club Robbery: Police Arrest Suspect After N5m Bounty

Lagos Club Robbery: Police Arrest Suspect After N5m Bounty

The Lagos State Police Command has arrested a suspected member of the gang that allegedly robbed clubgoers outside Ghost and Spirits Lounge on Ekoro Road, Abule Egba, Lagos.

The suspect was reportedly identified from video footage of the incident, which showed several people being attacked outside the entertainment venue in the early hours of the morning.

The Lagos club robbery reportedly occurred at about 4am on Saturday after some customers had left the lounge and gathered around their vehicles.

Footage from the scene showed several clubgoers sitting around a vehicle when the suspected robbers approached.

READ ALSO:

One of the suspects, reportedly dressed in a green shirt and cap, appeared to move among the people before allegedly targeting one of the victims.

Another member of the group was reportedly seen in an SUV parked across the road before a gunshot was fired, causing some of the people at the scene to run for safety.

The suspect in the green shirt was then allegedly seen taking a wristwatch from one of the victims, while other members of the group reportedly collected valuables before escaping in their vehicle.

Following the incident, the management of the lounge announced a N5 million reward for information leading to the arrest of the perpetrators.

The reward and subsequent investigation helped the police identify and track one of the suspects, who was eventually arrested.

A police source said the suspect was in custody and being interrogated, with investigators seeking information that could lead to the arrest of the other alleged members of the gang.

The Lagos Police Command has also intensified efforts to locate the remaining suspects, who are reportedly still at large.

The incident has raised concerns among residents and nightlife customers in Abule Egba, particularly over the security of people leaving entertainment venues during the early hours.

Police authorities have urged residents with useful information about the suspects or the robbery to assist the investigation.

The arrested suspect remains presumed innocent unless proven guilty in court, while investigations continue into the alleged robbery and the identities and whereabouts of the other suspects.

Lagos Club Robbery: Police Arrest Suspect After N5m Bounty

Loading

Continue Reading

metro

Passenger Dies After Jumping From Moving Bus In Lagos

Published

on

Passenger Dies After Jumping From Moving Bus In Lagos

Passenger Dies After Jumping From Moving Bus In Lagos

A passenger has died after jumping from a moving commercial bus at Ogunlana Junction, inward Ojuelegba, in the Surulere area of Lagos.

The incident involved a Volkswagen commercial bus with registration number LND 130 XR, which reportedly crashed into a median pole around the Fallout area of Surulere.

The Lagos State Traffic Management Authority (LASTMA) said preliminary security reports indicated that the driver was allegedly under the influence of alcohol and had been driving recklessly shortly before the crash.

According to the agency, motorists approaching the bus from behind had to exercise caution to avoid colliding with the vehicle as it reportedly moved erratically.

Amid the incident, a male passenger reportedly jumped from the moving bus, apparently attempting to escape from the uncontrolled vehicle. He sustained serious injuries after hitting the ground and later died from his injuries.

LASTMA officials conducting routine traffic surveillance along the Ojuelegba axis responded to the scene after noticing the crash. They secured the area, managed traffic and removed the damaged bus and the deceased passenger from the carriageway to reduce the risk of a secondary collision.

READ ALSO:

Police officers from the Area C Police Division, Ojuelegba, provided security at the scene, while officials of the State Emergency Management Agency evacuated the remains of the deceased.

LASTMA General Manager, Olalekan Bakare-Oki, described the incident as a reminder of the dangers associated with driving under the influence of alcohol, reckless driving and operating vehicles that may not be mechanically fit for the road.

Bakare-Oki urged commercial and private motorists to conduct comprehensive checks on their vehicles before every journey, with particular attention to the braking system, tyres, steering mechanism and other critical safety components.

He also commiserated with the family of the deceased and reaffirmed LASTMA‘s commitment to responding promptly to road crashes, managing traffic and clearing accident scenes.

The agency urged motorists and other road users to report accidents, vehicle breakdowns and other traffic obstructions through its toll-free short code, 3367.

Passenger Dies After Jumping From Moving Bus In Lagos

Loading

Continue Reading

metro

Kubwa Explosion: Vehicle Crashes Into Gas Outlet, Damages Nine Shops

Published

on

Kubwa Explosion- Vehicle Crashes Into Gas Outlet, Damages Nine Shops

Kubwa Explosion: Vehicle Crashes Into Gas Outlet, Damages Nine Shops

Panic broke out in Kubwa, Abuja, on Sunday morning after a gas explosion rocked the Liberty Junction area, following a vehicle crash into a roadside gas retail outlet.

The incident occurred at about 6:15 a.m., sending a powerful blast through the area and causing nearby buildings to shake, while thick smoke and flames rose from the affected facility.

The vehicle reportedly veered off the road and crashed into the gas outlet, triggering the explosion and subsequent fire.

The impact affected several businesses around the junction, with reports indicating that nine shops were damaged or destroyed by the ensuing fire.

A nearby police traffic post was also reportedly uprooted by the force of the explosion, while other structures and sections of the surrounding area were damaged.

The vehicle involved in the crash was badly burnt in the incident. Emergency responders, however, reportedly rescued the driver and a child from the wreckage.

The injured driver was taken to a medical facility for treatment, while emergency personnel worked to prevent the fire from spreading to other shops and properties in the densely populated area.

READ ALSO:

The explosion triggered panic among residents and commuters, with people reportedly rushing away from the scene as the fire continued to burn.

Emergency response agencies, including the Federal Fire Service, FCT Fire Service, National Emergency Management Agency (NEMA), Nigeria Security and Civil Defence Corps (NSCDC) and the Nigeria Police Force, were deployed to the scene.

Firefighters battled the flames for hours before the situation was brought under control.

The incident also caused significant traffic disruption around Liberty Junction and the Kubwa axis, as motorists slowed down and emergency responders worked at the scene.

Security personnel subsequently moved people away from the immediate area and helped manage traffic while the damaged vehicle and other debris were cleared.

Initial reports did not indicate a confirmed death from the explosion, although the driver was reported to have sustained injuries.

Authorities had yet to provide a detailed official account explaining why the vehicle veered off the road or confirming the full extent of the damage and injuries as of the time of reporting.

The incident has again drawn attention to safety concerns surrounding gas outlets located close to busy roads, shops and residential areas, particularly in densely populated parts of the Federal Capital Territory.

Further assessment by relevant authorities is expected to establish the precise circumstances of the crash, the extent of the property damage and whether any safety breaches contributed to the incident.

Kubwa Explosion: Vehicle Crashes Into Gas Outlet, Damages Nine Shops

Loading

Continue Reading

Trending