Tax consultant Adebisi Atoyebi clarified on December 30, 2025, that Nigeria's Nigeria Revenue Service (NRS) Act replacing the Federal Inland Revenue Service (FIRS) goes far beyond a name change, ushering in transformative reforms effective January 1, 2026. Speaking amid public skepticism, Atoyebi highlighted small business exemptions, progressive income rates, and streamlined compliance as game-changers for Nigeria's economy.
The Nigeria Tax Act 2025 consolidates over a dozen outdated laws into four modern statutes, exempting small companies (turnover ≤ ₦50m, assets ≤ ₦250m) from corporate income tax while capping personal income tax at 25% with 0% for earners under ₦800,000 annually. VAT stays at 7.5% but expands zero-rating for essentials like food and medicine, with full input VAT refunds on services and capex.
Non-residents face expanded taxable presence via digital economy rules and indirect share transfers, while presumptive taxation targets informal sectors without records. A 4% development levy replaces fragmented education/police funds, and e-invoicing mandates real-time reporting aligned with NRS technology.
Atoyebi emphasized relief for low-income earners, MSMEs, and digital/virtual asset taxation, projecting revenue growth without overburdening citizens amid Tinubu's fiscal reset. Implementation guidelines roll out January 2026, with tax compliance certificates now mandatory for licenses. Critics' "name change" narrative overlooks unified administration boosting efficiency.