
Introduction
The Federal Government of Nigeria has taken another decisive step toward modernizing the country’s tax system with the enactment of the Nigerian Tax Reform Acts 2025. This legislation introduces significant amendments across various tax laws, with implications for businesses, individuals, and professional service providers.
At Faturoti Taiwo and Co., a leading accounting and tax advisory firm in Lagos, we’ve broken down the major highlights to help you stay informed and compliant.
What Is the Nigerian Tax Reform Acts 2025?
The Nigerian Tax Reform Acts 2025 is a consolidation of key amendments affecting:
- Companies Income Tax Act (CITA)
- Value Added Tax (VAT) Act
- Personal Income Tax Act (PITA)
- Capital Gains Tax Act
- Stamp Duties Act
- And others…
The reform is part of Nigeria’s broader strategy to increase revenue generation, improve tax administration, and align with global best practices.
Key Highlights of the 2025 Reforms
1. Expansion of the VAT Base
The VAT scope has been broadened to include digital services provided by foreign companies to Nigerian consumers. This means tech companies like streaming services, e-commerce platforms, and software providers will now be required to remit VAT.
2. Digital Taxation Rules
A new Significant Economic Presence (SEP) threshold has been introduced for foreign companies operating without a physical presence in Nigeria. These companies are now liable to tax once they cross defined revenue thresholds from Nigerian sources.
3. Small Business Reliefs
Micro and small enterprises with annual turnovers below ₦25 million continue to enjoy tax exemptions under the reviewed regime. There are also incentives for startups in the innovation and tech sectors.
4. Capital Gains Tax Adjustments
There is now a more streamlined process for the taxation of gains from the disposal of digital and intangible assets, including cryptocurrencies and NFTs.
5. Administrative Overhaul
The Acts strengthen the powers of the Federal Inland Revenue Service (FIRS) to automate tax collection, enforce compliance, and integrate with digital payment systems.
What It Means for Your Business
These reforms signal a shift toward more robust tax enforcement and a digital-first approach to compliance. Businesses should:
- Reassess their tax structures
- Update accounting software to reflect changes
- Consider voluntary compliance options to avoid penalties
- Seek professional advice from accredited tax consultants
Download the Full Nigerian Tax Reform Acts 2025 PDF
To read the full Acts, click the button below:
Download Nigerian Tax Reform Acts 2025 (PDF)
Need Help Navigating the New Tax Landscape?
At Faturoti Taiwo and Co., we offer tailored tax advisory services to help businesses across Nigeria remain compliant and thrive under the evolving regulatory environment.
Call us: (+234) 701-272-5021
Email: thomas@faturotitaiwoandco.com
Visit us: www.faturotitaiwoandco.com
Stay Ahead. Stay Compliant. Partner with Professionals.
Faturoti Taiwo and Co. — Your Trusted Tax Experts in Lagos.