Nigeria Retains 30% Corporate Tax Under New Law — Small Firms Remain Exempt

The Federal Government has resolved to keep up Nigeria’s company revenue tax (CIT) charge at 30 p.c for all corporations, besides small companies, beneath sweeping reforms launched within the Nigerian Tax Act (NTA), which takes impact January 2026.

The Act preserves the 0 p.c CIT charge for small corporations, outlined as these with annual turnover under ₦25 million, whereas confirming a flat 30 p.c charge for all different corporations.

“Tax shall be levied… at 0% for small companies and 30% for any other company from the commencement of this Act,” the regulation states.

A serious shift within the regulation is the introduction of a minimal efficient tax rule: any giant firm — significantly members of multinational enterprise (MNE) {groups} — with an annual turnover of ₦20 billion or extra and an efficient tax charge under 15 p.c in any yr can pay an extra levy to satisfy that threshold.

READ ALSO: New Tax Laws to Take Effect January 2026, Says Adedeji

The Act additionally abolishes the ten p.c Capital Gains Tax, folding it into the company tax regime. This transfer repeals the Capital Gains Tax Act solely.

Abandoned Proposals to Cut CIT

The choice comes after months of intense debate. In mid-2024, Taiwo Oyedele, chair of the Presidential Fiscal Policy and Tax Reforms Committee, recommended slashing the CIT charge to 25 p.c to draw investments and spur {economic} progress. Similarly, a 2023 legislative proposal sought to chop the speed to 27.5 p.c in 2025 and 25 p.c by 2026, however these plans have been shelved.

With these reforms, the federal government indicators its dedication to spice up income whereas safeguarding enterprise incentives, balancing fiscal self-discipline with {economic} progress ambitions as Nigeria pursues a $1 trillion financial system goal.

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