This landmark legislation repeals and consolidates Nigeria’s principal tax laws—including the Personal Income Tax, Companies Income Tax, VAT, Capital Gains Tax, Stamp Duties, Petroleum Profits Tax, and others—into one unified, streamlined Act.

Key Features and Impact
Unified and Simplified Tax Framework
The NTA replaces overlapping and outdated tax legislation with a single, coherent law, aiming to improve transparency, reduce administrative complexity, and eliminate contradictory provisions

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Progressive Income Tax Structure
Individuals earning ₦800,000 or less annually are fully exempt from income tax, significantly reducing the burden on low-income earners. Higher earners are taxed on a progressive scale, capped at a 25% top rate, ensuring equity and fair distribution
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Reformed Corporate Income Tax
Small companies (turnover ≤ ₦50 million and fixed assets ≤ ₦250 million) enjoy 0% tax status. Larger companies pay 27.5% in 2025, dropping to 25% from 2026, providing clarity and stability for businesses.

Enhanced Capital Gains Tax (CGT) Provisions
The CGT rate for companies increases from 10% to 30%—aligning it with corporate income tax—while individuals benefit from exemptions on gains from residential property (up to one acre) and personal injury compensations.

Development Levy Introduced
A new Development Levy replaces a patchwork of nuisance levies, simplifying tax administration and reducing the bureaucratic burden on taxpayers.

Global Minimum Tax Mechanism
Multinational entities below a certain Effective Tax Rate (ETR) threshold are required to make top-up payments ensuring a 15% minimum tax, aligning Nigeria with global tax fairness initiatives.

VAT Revenue Reallocation Reform
The bill modifies VAT distribution to reward states based on their actual contributions, with reduced reliance on population-based formulas—though the Senate later capped derivation at 30% to address equity concerns.

Legal Supremacy Clause
A “supremacy clause” ensures that where this Act conflicts with any other law on the imposition of tax, it prevails, avoiding future legal contradictions and enhancing tax policy clarity