Figures cited by The Guardian show a significant shift in Nigeria’s fiscal landscape as the new Tax Reform Acts take full effect this month. Under the updated regulations, small companies with an annual turnover of N100 million or less are now officially exempt from Corporate Income Tax (CIT) and Capital Gains Tax (CGT). This move is intended to stimulate the growth of Small and Medium Enterprises (SMEs) by reducing their total tax burden.
However, the reforms also introduce a 15% minimum effective tax rate for large multinational corporations and a new 4% development levy on assessable profits. The Federal Inland Revenue Service (FIRS) has begun a nationwide sensitization drive to help businesses navigate these changes, which also include a harmonized 30% CGT rate for larger entities.
Punch reported that “SMEs are beginning to see the benefits of the new thresholds,” while Leadership highlighted concerns that “large-scale manufacturers are worried about the impact of the new 4% development levy on their margins.”
Echotitbits take: These reforms are a “Robin Hood” approach to taxation—taking more from the giants to shield the small players. While the SME exemptions are great for local business owners, the higher tax on shares and foreign transfers could make the Nigerian stock market slightly less attractive to institutional investors.
Source: The Cable – https://www.thecable.ng/firs-small-businesses-exempted-from-tax-must-file-annual-returns/#google_vignette, April 7, 2026
Photo credit: The Cable
