The Federal Inland Revenue Service (FIRS) has announced that multiple taxation at the federal level will be eliminated when Nigeria’s new tax laws take effect on January 1, 2026.
The agency said the reforms are designed to simplify tax payments and reduce the compliance burden on small and medium enterprises (SMEs) and other businesses across the country.
According to FIRS Coordinating Director of Compliance and Enforcement, Mr. Matthew Gbonjubola, the new tax regime harmonises all federal-level taxes and consolidates company profits under one system. He said the changes will make it easier for businesses to file and pay taxes through a simplified digital process.
Gbonjubola added that the federal government is already engaging state and local governments to prevent indiscriminate taxation and ensure a more predictable business environment for SMEs.
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Under the new law, businesses will file fewer returns—mainly annual tax returns and statutory deductions like PAYE, VAT, and withholding tax—reducing administrative costs and saving time.
Tax experts have also confirmed that the reforms will reduce the number of federal tax-collecting agencies to one: the Nigeria Revenue Service (NRS). This consolidation will help eliminate duplicate levies and improve transparency.
The new tax system is part of the government’s broader plan to improve Nigeria’s business climate, encourage formalisation among SMEs, and attract both local and foreign investment.
The law officially comes into force on January 1, 2026, giving businesses ample time to prepare for the transition and take advantage of the simplified framework.
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