How Nigeria’s New Tax Laws Will Transform Lives and Accelerate SME Growth — Insights from Dr. Taiwo Oyedele at Lagos Media Workshop

Nigeria’s newly enacted tax laws, set to take effect from January 1, 2026, are expected to bring sweeping relief to citizens and ignite growth among Micro, Small and Medium Enterprises (MSMEs), the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Dr. Taiwo Oyedele, told journalists at a media workshop in Lagos on Friday.

In a passionate address, Dr. Oyedele described the reforms as a historic pivot toward an equitable and pro-growth tax system that will protect low-income earners, promote formalisation, and make doing business in Nigeria easier and more rewarding than ever before.

“These new laws are designed to empower all Nigerians — from workers and households to entrepreneurs and small business owners,” Oyedele said, underscoring the government’s intention to overhaul a historically fragmented and burdensome tax system.

A central feature of the reforms is significant tax relief for small enterprises. Firms with annual turnover below ₦100 million will pay zero Company Income Tax (CIT), while the general CIT rate has been cut from 30% to 25%, a move expected to boost competitiveness and attract foreign direct investment.

Dr. Oyedele explained that the government has also significantly expanded personal income tax exemptions. Analysts and government projections suggest that over 90% of Nigerian workers — particularly low-income earners — will be exempt from Pay-As-You-Earn (PAYE) tax once the new laws take effect.

“These reforms resolve a major challenge in Nigeria’s tax architecture — the multiplicity of taxes that previously hampered growth, especially in the informal sector, which is the backbone of our economy,” he said, stressing the need to simplify compliance and eliminate barriers to formalisation.

Oyedele also highlighted targeted Value Added Tax (VAT) reliefs on essentials such as food, healthcare, and education, which experts note will buffer households from rising living costs and preserve purchasing power.

The media workshop emphasized the government’s commitment to transparent public communication, noting that accurate reporting and public understanding are critical for the reforms to achieve their full impact. Oyedele called on journalists to help demystify the new regime and correct misinformation that could undermine its objectives.

Economic analysts believe the tax reforms will enhance economic formalisation, expand the tax base, reduce compliance costs for MSMEs, and ultimately contribute to sustainable economic growth and job creation across sectors.

As Nigeria prepares for the tax overhaul, stakeholders across government, private sector and civil society are encouraged to stay engaged, informed, and ready to leverage the opportunities these changes are expected to unlock.

Discover how Nigeria’s new tax laws will empower citizens and boost SME growth with reduced taxes, expanded exemptions, and incentives — featuring key insights from Dr. Taiwo Oyedele during the Lagos media workshop.