The Independent Media and Policy Initiative (IMPI) has stated that the newly enacted Nigeria Tax Act 2025 will strengthen Nigeria’s appeal to foreign investors while offering crucial support to Small and Medium-sized Enterprises (SMEs).
Effective from January 2026, the new tax regime introduces reforms aimed at eliminating double taxation, simplifying compliance, and enhancing the country’s ease of doing business. In a statement released Tuesday, IMPI Chairman, Dr. Omoniyi Akinsiju, noted that the new tax law was designed to stimulate business expansion and attract global capital.
A major highlight is the introduction of a Minimum Effective Tax Rate (ETR) of 15% for large corporations with annual turnovers of ₦50 billion and above or belonging to multinational groups with global revenues exceeding €750 million. This move replaces the standard 30% Company Income Tax and seeks to eliminate taxation on unrealised gains and dividend payouts.
“The goal is to avoid the double taxation of dividends and unrealised gains or losses. This clarity and rate adjustment will undoubtedly influence the flow of global capital to Nigeria,” Akinsiju stated.
The Act also raises the exemption threshold for capital gains on company share sales from ₦100 million to ₦150 million within a 12-month period, provided the gains remain below ₦10 million—another step aimed at improving business flexibility.
According to IMPI, the tax reliefs introduced under the Nigeria Tax Act 2025 are expected to ease the burden on Micro, Small, and Medium Enterprises (MSMEs), promoting a more favourable environment for job creation, local investment, and economic inclusion.
“This federal administration, led by President Tinubu, has gifted the country a body of legacy fiscal policies with the potential to transform the Nigerian economic space more than any policy deployment in a generation,” Akinsiju concluded.
With the implementation of four strategic tax laws, the removal of fuel subsidies, and reforms in the forex market, Nigeria appears to be aligning its fiscal architecture for a more sustainable and inclusive economic trajectory.
