Nigeria Tax Act, 2025

The Act repeals a long list of older tax laws, including the Companies Income Tax Act, the Personal Income Tax Act, the Value Added Tax Act, the Capital Gains Tax Act and the Stamp Duties Act, and replaces them with one law. For individuals it sets a 0% rate on the first N800,000 of taxable income, rising in bands to 25% above N50,000,000, and allows a rent relief of 20% of rent paid up to N500,000. VAT stays at 7.5% and the Act lists supplies exempt from it, such as baby products, sanitary towels and assistive devices. The gazetted copy states a commencement date of 1 January 2026. In December 2025 a House member alleged that the gazetted tax laws differed from what the National Assembly passed, and in January 2026 the National Assembly released Certified True Copies.

6 sections · Act No. 7 of 2025

1. 1.Objective

   The objective of this Act is to provide a unified fiscal legislation governing taxation in Nigeria.

2. 30(2)(a)(vi).Ascertainment of chargeable income of individuals

   rent relief of 20% of annual rent paid, subject to a maximum of ₦500,000, whichever is lower, provided that the individual accurately declares the actual amount of rent paid and other relevant information as may be prescribed by the relevant tax authority;

3. 148.Rate of VAT

   Subject to the provisions of Part IV of Chapter Eight of this Act, VAT shall be charged on the value of all taxable supplies at the rate of 7.5%.

4. 186(1)(d)-(e).Exempt supplies

   The following supplies are exempt from the VAT imposed under Chapter Six of this Act – ... (d) baby products ; (e) locally manufactured sanitary towels, pads or tampons ;

5. 186(1)(o).Exempt supplies

   Assistive devices and disability-related products including hearing aids, wheelchairs, and braille materials.

6. Fourth Schedule (s.58(1)).Individuals' income tax rates

   After the relief allowance and exemptions had been granted in accordance with section 30 (1) of this Act, the taxable income ascertained shall be taxed at the following rates – (a) First ₦800,000 at 0%; (b) Next ₦2,200,000 at 15%; (c) Next ₦9,000,000 at 18%; (d) Next ₦13,000,000 at 21%; (e) Next ₦25,000,000 at 23%; and (f) Above ₦50,000,000 at 25%.

This is a readable rendering for citizens. The authoritative text is the gazetted version — linked below.