President Bola Tinubu on Thursday signed into law four new tax-related bills aimed at transforming Nigeria’s tax system, enhancing revenue generation, and improving the ease of doing business across the country.
The new laws, which were recently passed by the National Assembly, include the Nigeria Tax Bill (Ease of Doing Business), the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
Speaking at the signing ceremony held at the State House in Abuja, President Tinubu described the legislative reforms as a major step towards economic revival and long-term prosperity for all Nigerians.
According to a statement by
Bayo Onanuga, the Special Adviser to the President on Information & Strategy, Tinubu said, “What we did a few minutes ago is the way forward for our country’s prosperity.”
“Leadership must help people take off, lead the way, and navigate every turn and twist. We are in transit; we have changed the roads, we have changed some of the misgivings, we have opened the doors to a new economy and business opportunities. We have shown the world that Nigeria is ready and open for business.”
The newly signed bills seek to modernize and harmonize Nigeria’s tax framework. The Nigeria Tax Bill aims to simplify and consolidate tax laws to improve the business environment.
The Nigeria Tax Administration Bill introduces a unified legal and operational structure for tax management at federal, state, and local levels.
Meanwhile, the Nigeria Revenue Service (Establishment) Bill repeals the existing FIRS Act and establishes a more autonomous and performance-oriented Nigeria Revenue Service.
The Joint Revenue Board (Establishment) Bill provides for a formal governance mechanism to promote cooperation among revenue authorities nationwide.
Acknowledging the efforts of the National Assembly, President Tinubu thanked lawmakers for their commitment to national development despite early challenges in the legislative process.
“It was initially difficult, but not all roads will be easy in nation-building. What you have provided is leadership and courage in the face of mounting disputes. Nowhere in the world would tax reforms be easy,” he said.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, praised President Tinubu’s support throughout the reform process, describing the enactment of the bills as a historic milestone.
“History will remember you for good for transforming our country because you went for a fundamental reform,” Oyedele said, noting that the President had allowed the committee to work independently while asking the right questions.
The Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, also hailed the new laws, calling the occasion “the happiest day of my life” and a “dream come true.”
Senate President Godswill Akpabio commended President Tinubu’s leadership, saying the new tax laws will stand the test of time.
“We have always known that you are a thinker, that you are intellectually sound, and that you care for your country. This law would last for generations to come,” Akpabio said.
Here is what the new tax reforms mean for Nigerians in the diaspora:
1. A More Reliable System for Diaspora Investors
For many Nigerians living abroad, one major concern has been the complicated and unclear tax system back home.
With the new laws, Nigeria is now building a more modern, unified, and transparent system. This means diaspora Nigerians who want to buy property, invest in a business, or support family ventures in Nigeria will now face clearer and more stable tax rules.
The current Federal Inland Revenue Service will be replaced with a new Nigeria Revenue Service, which will be more independent and better run. There will also be a Joint Revenue Board to improve how taxes are handled across the federal, state, and local governments. All of this is meant to reduce confusion and improve trust in the system.
2. A Better Business Climate for Returnees and Investors
The laws will lower corporate tax rates from 30 percent to 27 point 5 percent in 2025 and then to 25 percent later. This is expected to make Nigeria more attractive for business. Startups and technology companies will also enjoy special tax breaks.
If you are a Nigerian abroad who wants to come back to start a company or expand an existing business, the new tax rules make that easier and more profitable.
Also, small businesses that earn less than 50 million naira a year will now be fully free from paying company income tax and withholding tax. This makes it easier for many small businesses to grow—especially those started by returnees.
3. Your Money Will Go Further Back Home
Nigerians abroad send home billions of naira every year in remittances. The new laws remove value added tax from essential goods and services like food, transport, rent, education, and healthcare. These are the main things your family uses the money for.
With no tax added to those items, the money you send home will cover more. This is a big relief for families and increases the power of diaspora remittances.
4. Clearer Tax Rules for Nigerians Earning at Home and Abroad
The new laws also raise some questions for Nigerians abroad who earn money from businesses or property in Nigeria. Will they be taxed both in Nigeria and in their country of residence?
The new tax administration law is expected to improve cooperation between Nigeria and other countries on tax matters. While full details are not yet clear, this may lead to better rules around double taxation and more formal ways for Nigerians abroad to ask questions or challenge tax issues.
A new tax appeal process and tax ombudsman will also make it easier to speak up when things are not right.
5. Greater Confidence to Return or Retire
Many Nigerians abroad want to come back someday, whether to start a business, retire, or live closer to family. The new laws aim to build a fairer and more open economic system, which could give many diaspora Nigerians the confidence to return.
