29/01/2026
📢📢 * GOMBE SOUTH YOUTHS FORUM * 📢📢
Meeting Details
- Date: 11th January, 2026.
- Time: 9:00pm
AGENDA
- PUBLIC LECTURE ON NIGERIA’S NEW TAX LAW.
MINUTES
-- Mr. President: Welcome everyone's presence in the first meeting of the year and which he believe this year will be great for Gombe South Youth Forum for progress and divine wisdom in moving forward.
LECTURE: BY J.B Lamer, Esq and Legal Adviser, Gombe South Youth Forum.
Nigerian government has overhauled its tax system by replacing multiple older tax statutes (like the old Personal Income Tax, VAT Act, Companies Income Tax Act, etc.) with a modernised, unified tax code under the 2025 Tax Reform Acts. These include:
-Nigeria Tax Act (NTA)
-Nigeria Tax Administration Act (NTAA)
-Nigeria Revenue Service Act (NRSA)
-Joint Revenue Board Act (JRBA)
These reforms officially began implementation on January 1, 2026
WHAT THIS MEANS FOR YOUTHS (YOUNG NIGERIANS)
-JOB-SEEKERS & EMPLOYEES
If you have no taxable income, you don’t pay tax, like students and unemployed youths are typically unaffected. For early career workers, more generous non-taxable thresholds and reliefs help keep more take-home pay
ENTREPRENEURS & INFORMAL WORKERS
Formalisation becomes important: registering and getting a Tax Identification Number (TIN) is now essential for banking and formal business operations. Youth-driven start-ups can benefit from exemptions for smaller enterprises. Everyone must file tax returns each year, even those who owe nothing. Companies must file by March 31. Individuals have until June 30. Filing is done through Nigeria Revenue Service portals.
Late filing attracts a N100,000 fine, plus N50,000 for each additional month. Failure to pay tax brings a 10 percent penalty plus interest tied to the Central Bank’s monetary policy rate, currently 27 percent.
WHAT IT MEANS FOR BUSINESSES
Simplified tax categories and fewer overlapping levies reduce administrative headaches.
Small and informal businesses now face much lighter tax burdens if they meet thresholds.
Improved VAT system and digital compliance can enhance efficiency.
What It Means for the General Public
For workers: Your take home pay may increase if you earn below the new thresholds versus the old regime. Filing returns is now universal even those exempt must file zero returns to stay compliant.
OVERVIEW OF NIGERIA’S NEW TAX LAW
Nigeria’s government passed and the President assented to four major tax reform laws in June 2025. These collectively replace and consolidate many old tax statutes into a modern, unified system that took effect in 2026 with the major acts including the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA) Purpose of the reform:
-Simplify and modernize tax laws
-Broaden the tax base
-Improve compliance and administration
-Support economic growth and revenue stability.
PERSONAL INCOME TAX (INDIVIDUALS)
Replaces older frameworks with progressive tax brackets. Individuals earning up to ₦800,000 per year are now exempt from personal income tax. Higher income brackets are taxed up to 25% at the top end. New deductions such as rent relief, and clearer residency rules are introduced. Digital and non-traditional income (e.g., some digital asset gains) is brought into the tax net.
CORPORATE & BUSINESS TAX
Repeals many legacy taxes (e.g., CIT Act, VAT Act, CGT Act) and consolidates them under a unified regime. Small companies (turnover ≤ ₦100 m & fixed assets ≤ ₦250 m) are fully exempt from major taxes to support SMEs. Corporate Income Tax (CIT) for larger firms is reduced (e.g., ~25%). A new 4% Development Levy on assessable profits replaces several overlapping levies like the Tertiary Education Tax and Police Fund contributions. A Minimum Effective Tax Rate (ETR) of at least 15% applies to large companies and multinationals to reduce avoidance.
VALUE ADDED TAX (VAT) & ADMINISTRATION
VAT remains at 7.5%, but the list of zero-rated items has expanded to include essentials like basic foods and health products. Input VAT credit can now be claimed for services and capital assets, improving business cash flow. Administration is more digital, with mandatory e-invoicing, online filing, and enhanced enforcement mechanisms. Penalties for late filing or non-compliance are strengthened to improve enforcement.
ENFORCEMENT & COMPLIANCE
All tax payers including those exempt must file annual tax returns. Penalties and interest on late payments have been clarified and generally increased to promote compliance. New digital systems for filing, reporting, and invoicing are mandatory. Shared data mechanisms across agencies make avoidance harder and compliance transparent.
WHY THIS TAX MATTERS FOR THE ECONOMY
-Broadens the tax base beyond oil reliance.
-Encourages formal business registration and compliance.
-Improves fiscal transparency and accountability.
WHY THIS TAX MATTERS FOR INDIVIDUALS:
-Many low-income earners now pay no tax at all.
-More predictable tax rules and reliefs reduce confusion.
WHY THIS TAX MATTERS FOR BUSINESSES:
-Simplifies tax liabilities by reducing overlapping levies.
-Lowers burdens on small enterprises.
-Incentivizes investment with new credits and exemptions.
WHO PAYS TAX IN NIGERIA
Individuals (Personal Income Tax PIT) You pay tax if you are employed (public or private sector)
Are self-employed (traders, artisans, freelancers, professionals)
EARN INCOME FROM: Salaries, wages, Business or Professional services, Rent, interest, dividends Digital services or online work (local or foreign clients) If your annual income is above ₦800,000, you are liable to pay Personal Income Tax.
BUSINESSES & COMPANIES
You pay tax if: Your business is registered and operating in Nigeria. Your annual turnover exceeds ₦100 million (for companies)
YOU EARN PROFITS FROM: Trading, Manufacturing, Services, Digital or online platforms supplying services to Nigeria.
APPLICABLE TAXES MAY INCLUDE: Company Income Tax (CIT), Development Levy, Value Added Tax (VAT), Withholding Tax (WHT)
FOREIGN & DIGITAL BUSINESSES
Foreign companies pay tax if they: Provide digital services to Nigerians. Have a significant economic presence in Nigeria.
Earn income from Nigeria (even without physical offices)
❌ WHO IS EXEMPT FROM TAX
👤 Low-Income Earners
You are exempt from Personal Income Tax if your total annual income is ₦800,000 or below You are unemployed or a full-time student with no taxable income. Note: You may still be required to file a zero tax return.
SMALL COMPANIES (SMES)
A company is exempt from major taxes if: Annual turnover is ₦100 million or less. Fixed assets do not exceed ₦250 million. Such companies are exempt from: Company Income Tax (CIT) Development Levy, Capital Gains Tax (in most cases)
THE FOLLOWING ARE GENERALLY EXEMPT:
-Religious organisations (on non-profit activities)
- Registered charities and NGOs
-Government institutions (for public functions)
-Pension income and gratuities
OPPORTUNITIES CREATED BY THE NEW TAX REGIME STIMULATES GROWTH OF SMALL BUSINESSES & SMES
✅ Lighter tax burden for small enterprises
Businesses with lower turnover and asset value are exempt from major taxes like Company Income Tax, Capital Gains Tax and the Development Levy. This allows small firms to retain and reinvest more of their profits, fueling growth, expansion and job creation instead of immediately paying high tax bills.
✅ Formalisation opens doors
Being formally registered and compliant gives small businesses better access to banking, credit facilities, and government support programs, increasing opportunity for scaling and investment.
BENEFITS FOR INDIVIDUALS & LOW-INCOME EARNERS
✅ Increased take-home income
Individuals earning below ₦800,000 annually are completely exempt from personal income tax, meaning more money stays in people’s pockets especially for young workers, entry-level professionals and low-income households.
✅ Progressive tax structure
Higher earners are taxed progressively up to 25%, but with reliefs like rent relief and allowances, many taxpayers can reduce taxable income and tax payable compared to the old system.
INCENTIVES FOR INVESTMENT & CAPITAL SPENDING
✅ Research & Development incentives
Companies can deduct a portion of revenue spent on qualifying R&D activities, encouraging innovation and investment in new technologies and products.
✅ Capital expenditure credits
The regime introduces tax credits for qualifying capital expenditures, making investment in equipment, facilities or plant expansions more attractive for businesses.
BOOSTING NIGERIA’S COMPETITIVENESS & EXPORTS
✅ Zero-rating for essential goods & exports
A range of goods and services including basic foods, education, health products, and non-oil exports are VAT-zero rated. This reduces cost for consumers and helps exporters compete better globally.
✅ Digital economy opportunities
The inclusion of digital and remote work income into the tax system, with clear rules, makes Nigeria more attractive as a Business Process Outsourcing (BPO) hub and opens up global work opportunities for Nigerian freelancers and remote workers.
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