New Tax Regime to Reduce Burden on Workers, Small Businesses – Joseph Tegbe

The Chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, has stated that Nigeria’s newly introduced tax regime is designed to ease the financial burden on workers and small businesses while enhancing the country’s fiscal sustainability and global economic competitiveness.

Speaking at the BusinessDay Tax Reform Conference 2026, themed “Navigating the New Tax Regime: What It Means for Your Wallet,” Tegbe described the reforms as the most far-reaching overhaul of Nigeria’s tax architecture in decades. He explained that the initiative is aimed at simplifying the tax system, promoting fairness, and stimulating 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. These laws introduce a range of targeted relief measures aimed at supporting individuals and small businesses.

Under the new framework, individuals earning less than ₦800,000 annually will be exempt from personal income tax. Workers will also be eligible for rent relief of up to 20 percent, capped at ₦500,000, among other incentives. Small businesses are expected to benefit significantly as companies with annual revenues below ₦100 million and assets under ₦250 million will be exempt from Company Income Tax. In addition, nano-enterprises generating less than ₦12 million annually will not be required to pay income tax.

Tegbe, however, emphasized the importance of proper documentation of income and compliance with tax filing requirements, even for individuals and businesses that fall within the tax-exempt thresholds.

“These reforms are intended 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 and efficient system.”

The reforms also seek to strengthen tax administration through improved coordination among key institutions, including the Nigeria Revenue Service, the Joint Revenue Board of Nigeria, the Tax Appeal Tribunal, and the Office of the Tax Ombud, while accelerating the digitalization of tax processes nationwide.

Tegbe further noted that beyond improving revenue efficiency, the reforms are designed to establish a tax system that encourages enterprise, attracts investment, and supports long-term economic growth.

“The ultimate goal is to build a tax system that works for both government and citizens—one that promotes development while safeguarding the financial well-being of ordinary Nigerians,” he added.

Other dignitaries present at the conference included Olusegun Adesokan, Executive Secretary of the Joint Revenue Board; Michael Ango; Uche Uwaleke; and Sam Amadi, among others.