Aigbogun, Uwaleke say new tax regime targets relief for households, incentives for MSMEs

Nigeria’s new tax regime is designed to expand government revenue while easing the burden on low-income earners and supporting small businesses, stakeholders said on Thursday at the BusinessDay Tax Reform Conference 2026, in Abuja.

The summit, themed “Navigating the New Tax Regime: What It Means for Your Wallet,” brought together policymakers, economists and business leaders to examine the implications of the sweeping tax reforms introduced by President Bola Tinubu.

Frank Aigbogun, publisher at BusinessDay Media Limited, represented by John Osadolor, the deputy editor at BusinessDay Abuja said the conference was convened to help Nigerians understand the reforms and their implications for households and businesses.

Aigbogun noted that the new framework stems from four landmark tax laws signed by the president in June 2025. They include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Act and the Joint Revenue Board Act.

“These laws form part of broader efforts to comprehensively overhaul Nigeria’s tax landscape, drive economic growth and improve revenue generation across all levels of government,” he said.

Aigbogun added that the platform was created to provide clarity around the reforms, address misconceptions and help businesses comply more easily with the new tax framework.

Uche Uwaleke, president, Capital Market Academics of Nigeria and a don at the Nasarawa  State University, Keffi who presented the keynote address described the reforms as one of the most significant restructuring of Nigeria’s tax system in decades.

He noted that Nigeria has long struggled with a tax to GDP ratio that remains far below global and African averages, limiting the government’s ability to fund infrastructure and social services.

“The reforms embodied in the Nigeria Tax Acts 2025 represent one of the most comprehensive restructurings of Nigeria’s revenue system in decades,” he said.

According to him, the new tax regime aims to modernize tax administration, improve efficiency and broaden the tax base while maintaining a balance between revenue generation and economic growth.

“At its core, the new tax regime seeks to strike a delicate balance between revenue generation and economic growth,” he said.

Uwaleke said the reforms include several measures aimed at protecting households, particularly low income earners.

These include expanded tax exemptions, rent reliefs and the protection of pensions and healthcare contributions from additional tax burdens.

He added that the expansion of value added tax zero rating on essential goods and services would help shield households from rising living costs.

“This is a conscious effort to build a more equitable social contract,” he said.

“For your wallet, this translates to more disposable income for savings and investment and a tax system that recognises essential needs.”

The keynote speaker also highlighted significant incentives for entrepreneurs and small businesses.

Under the new framework, businesses with annual turnover of up to N100 million are classified as small companies and may enjoy exemptions from companies income tax, capital gains tax and value added tax.

He said the policy is designed to support MSMEs and encourage business formalisation.

“It means more capital can be reinvested into your business, creating jobs and driving innovation,” Uwaleke said.

stricter rules for large companies
While small businesses receive relief, large corporations and multinational companies will face stronger compliance requirements.

The reforms introduce a minimum effective tax rate of 15 percent in line with emerging global tax standards.

Uwaleke said the policy ensures that companies operating in Nigeria contribute fairly to national development.
unified development levy introduced
Another major feature of the reforms is the introduction of a unified development levy of four percent.

He noted that the levy consolidates several existing charges, including the tertiary education tax and the NASENI levy.

According to Uwaleke, the consolidation is intended to simplify compliance for businesses while ensuring transparent funding for national priorities such as education, research and innovation.
media role in tax awareness.

Uwaleke also highlighted the role of the media in improving public understanding of tax policies.

“Public understanding of tax policy is often limited not because the issues are inherently complex, but because they are not adequately communicated,” he said.

He noted that by translating technical policy discussions into accessible information, media organisations can help citizens make informed financial decisions and enable businesses to adapt to regulatory changes.