The Federal Government has introduced a new package of tax incentives and fiscal waivers designed to ease the burden on Small and Medium Enterprises (SMEs), especially businesses with annual turnover below N50 million.
The policy, approved at the Federal Executive Council meeting, includes a two-year tax holiday for tech startups and agribusinesses, along with simplified filing to curb multiple taxation and encourage informal businesses to adopt formal channels.
Officials also disclosed a low-interest credit facility to be managed by the Bank of Industry, positioning the reforms as a jobs-and-production strategy for a manufacturing chain strained by high operating costs.
Echotitbits take: These reforms are a direct response to rising inflation and the high cost of doing business. While the tax holiday is welcome, success will hinge on eliminating the ‘hidden taxes’ of weak infrastructure and logistics bottlenecks. Watch for implementation guidelines from FIRS in the coming weeks.
Source: Kuda – https://kuda.com/blog/nigeria-2026-tax-reform-what-it-means-for-your-money-and-business/ 2026-01-27
Photo Credit: Kuda
