The Presidential Fiscal Policy and Tax Reforms Committee has released 50 tax exemptions and relief measures that will take effect from January 1, 2026, under the recently enacted tax reform laws.

President Bola Ahmed Tinubu signed the four tax reform bills into law on June 26, 2025. These laws are the Nigeria Tax Act (NTA), the Nigeria Tax Administration Act (NTAA), the Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA).

According to information published on the government’s official website, the new laws will provide many reliefs and exemptions for low-income earners, average taxpayers, and small businesses.

The reforms cover multiple tax categories, including Personal Income Tax, Companies Income Tax, Value Added Tax, Stamp Duties, and Capital Gains Tax.

As part of the reform rollout, the government has also launched an “Influencing for Good” initiative to promote accurate public understanding of the new tax laws.

Under the programme, citizens are invited to nominate content creators and influencers who educate their audiences about tax reforms.

A statement from the Committee reads, “Nominate a content creator who’s been educating their audience about Nigeria’s new tax reform laws or someone you’d like to see do so. We’ll be selecting the top 20 creators with the most nominations for a special training to help them share accurate, balanced, and useful tax information with their followers.

“Misinformation spreads fast, often to the author’s benefit but to the audience’s loss. Accurate information may travel slower, but it empowers everyone and earns lasting trust. Tag or mention your favourite influencer to nominate or fill the nomination form at https://forms.gle/15kyv1ffx7tzTLhi8. Nomination closes on 9 November 2025.”

The following are the 50 exemptions and relief provisions outlined under the new tax laws:

𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐨𝐫 𝐏𝐀𝐘𝐄

1. Individuals earning the national minimum wage or less (exempt).
2. Annual gross income up to ₦1,200,000 (translating to about ₦800,000 taxable income) is exempt.
3. Reduced PAYE tax for those earning annual gross income up to ₦20 million.
4. Gifts (exempt).

𝐀𝐥𝐥𝐨𝐰𝐚𝐛𝐥𝐞 𝐃𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧𝐬 & 𝐑𝐞𝐥𝐢𝐞𝐟𝐬 𝐟𝐨𝐫 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥𝐬

5. Pension contribution to PFA.
6. National Health Insurance Scheme.
7. National Housing Fund contributions.
8. Interest on loans for owner-occupied residential housing.
9. Life insurance or annuity premiums.
10. Rent relief – 20% of annual rent (up to ₦500,000).

𝐏𝐞𝐧𝐬𝐢𝐨𝐧𝐬 & 𝐆𝐫𝐚𝐭𝐮𝐢𝐭𝐢𝐞𝐬 – 𝐄𝐱𝐞𝐦𝐩𝐭

11. Pension funds and assets under the Pension Reform Act (PRA) are tax-exempt.
12. Pension, gratuity or any retirement benefits granted in line with the PRA.
13. Compensation for loss of employment up to ₦50 million.

𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐆𝐚𝐢𝐧𝐬 𝐓𝐚𝐱 (𝐂𝐆𝐓) – 𝐄𝐱𝐞𝐦𝐩𝐭

14. Sale of an owner-occupied house.
15. Personal effects or chattels worth up to ₦5 million.
16. Sale of up to two private vehicles per year.
17. Gains on shares below ₦150 million per year or gains up to ₦10 million.
18. Gains on shares above exemption threshold if the proceed is reinvested.
19. Pension funds, charities, and religious institutions (non-commercial).

𝐂𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 (𝐂𝐈𝐓) – 𝐄𝐱𝐞𝐦𝐩𝐭

20. Small companies (turnover not more than ₦100 million and total fixed assets not more than ₦250 million) pay 0% tax.
21. Eligible (labelled) startups are exempt.
22. Compensation relief – 50% additional deduction for salary increases, wage awards, or transport subsidies for low-income workers.
23. Employment relief – 50% deduction for salaries of new employees hired and retained for at least three years.
24. Tax holiday for the first 5-years for agricultural businesses (crop production, livestock, dairy, etc.).
25. Gains from investment in a labeled startup by venture capitalist, private equity funds, accelerators or incubators.

𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐋𝐞𝐯𝐲 – 𝐄𝐱𝐞𝐦𝐩𝐭

26. Small companies are exempt from 4% development levy.

𝐖𝐢𝐭𝐡𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐓𝐚𝐱 – 𝐄𝐱𝐞𝐦𝐩𝐭

27. Small companies, manufacturers and agricultural businesses are exempt from withholding tax deduction on their income.

28. Small companies are exempt from deduction on their payments to suppliers.

𝐕𝐚𝐥𝐮𝐞 𝐀𝐝𝐝𝐞𝐝 𝐓𝐚𝐱 (𝐕𝐀𝐓) – 0% 𝐨𝐫 𝐄𝐱𝐞𝐦𝐩𝐭

29. Basic food items – 0% VAT.
30. Rent – Exempt.
31. Education services and materials – 0% VAT.
32. Health and medical services.
33. Pharmaceutical products – 0% VAT.
34. Small companies (≤ ₦100m turnover) are exempt from charging VAT.
35. Diesel, petrol, and solar power equipment – VAT suspended or exempt.
36. Refund of VAT on assets and overheads to produce VATable or 0% VAT goods and services.
37. Agricultural inputs – fertilisers, seeds, seedlings, feeds, and live animals.
38. Purchase, lease or hire of equipment for agric purposes.
39. Disability aids – hearing aids, wheelchairs, braille materials.
40. Transport – shared passenger road transport (non-charter).
41. Electric vehicles and parts – exempt.
42. Humanitarian supplies – exempt.
43. Baby products.
44. Sanitary towels, pads or tampons.
45. Land and building.

𝐒𝐭𝐚𝐦𝐩 𝐃𝐮𝐭𝐢𝐞𝐬 – 𝐄𝐱𝐞𝐦𝐩𝐭

46. Electronic money transfers below ₦10,000.
47. Salary payments.
48. Intra-bank transfers.
49. Transfers of government securities or shares.
50. All documents for transfer of stocks and shares.