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

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

Chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, has said Nigeria’s newly introduced tax regime is designed to reduce the tax burden on workers and small businesses while strengthening the country’s fiscal sustainability and 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 comprehensive overhaul of Nigeria’s tax architecture in decades.

According to him, the reforms are anchored on four key legislations — the Nigeria Tax Act, 2025; Nigeria Tax Administration Act, 2025; Nigeria Revenue Service (Establishment) Act, 2025; and the Joint Revenue Board of Nigeria (Establishment) Act, 2025 — all designed to simplify taxation, promote fairness, and stimulate economic growth.

Tegbe explained that the new framework introduces several targeted reliefs for individuals and small businesses. Under the reforms, individuals earning less than ₦800,000 annually will be exempt from paying personal income tax. Workers will also be able to claim rent relief of up to 20 percent, capped at ₦500,000, among other benefits.

Small businesses are expected to gain significantly from the reforms. Companies with annual revenues below ₦100 million and assets under ₦250 million will be exempt from Company Income Tax, while nano-enterprises earning less than ₦12 million annually will also be exempt from income tax.

However, Tegbe emphasized that even individuals and businesses within the exempt thresholds must properly document their earnings and continue to file tax returns as required.

“These reforms are designed 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 system.”

He added that the reforms also seek to strengthen Nigeria’s 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, alongside the accelerated digitalisation of tax processes.

Tegbe noted that beyond improving revenue efficiency, the reforms are aimed at building a tax system that supports enterprise, investment, and long-term economic growth.

“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 said.

Other dignitaries at the conference included Executive Secretary of the Joint Revenue Board, Olusegun Adesokan; Acting Executive Chairman of the FCT Internal Revenue Service, Michael Ango; tax expert Uche Uwaleke; and legal scholar Sam Amadi, among others.