Core Numbers
- ₦800,000 — PIT exemption threshold for low-income earners.
- ≤ ₦100m — SME turnover often referenced for CIT relief.
- 7.5% — VAT rate unchanged; more items VAT-exempt.
- CRA removed — rent and approved contributions highlighted instead.
2026 Nigeria Tax Reform • Quick Guide
Understand the new tax rules — and set up your business the smart way.
Progressive PIT, targeted reliefs, SME incentives and VAT exemptions — explained in plain language for salary earners and business owners.
TheMainCEOs • RC-1671809 • Educational guide only — for personalised advice, chat with us on WhatsApp.
What You’ll Learn in Minutes
A practical overview for salary earners and business owners — not just tax experts.
Big Picture
- Simpler rules — clearer “what, who, how much”.
- Fairer taxes — progressive rates and targeted reliefs.
- Digital filing — more structured online processes.
- Less double taxation — stronger federal/state coordination.
The Four New Acts
- Nigeria Tax Act (NTA) — who/what/how much.
- Tax Administration Act (NTAA) — filing & payment processes.
- Nigeria Revenue Service Act (NRSA) — stronger revenue service.
- Joint Revenue Board Act (JRBA) — coordination to reduce double taxation.
Salary Earners: New PIT Bands
Use this to understand where you roughly fall before reliefs/deductions.
| Annual Income Band (₦) | Rate |
|---|---|
| ₦0 – ₦800,000 | 0% |
| ₦800,001 – ₦3,000,000 | 15% |
| ₦3,000,001 – ₦12,000,000 | 18% |
| ₦12,000,001 – ₦25,000,000 | 21% |
| ₦25,000,001 – ₦50,000,000 | 23% |
| Over ₦50,000,000 | 25% |
CRA (Consolidated Relief Allowance) is abolished and replaced with targeted reliefs like rent relief (lower of ₦500,000 or 20% of annual rent), plus deductions for pension, NHF, NHIS and similar approved contributions (as shared).
Quick PIT Estimator (Rough)
Enter your yearly income to see a rough band-based estimate before any reliefs.
This is a rough band-only estimate. Actual tax payable may be lower after applying reliefs/deductions and official computation formulas. Always confirm with an authorised tax adviser.
Business Owners: Key Highlights
Why your structure (Enterprise vs LTD) matters more under the new regime.
SME & Company Reliefs
- Turnover ≤ ₦100m exempt from CIT and Development Levy (as shared).
- CIT reduced from 30% → 25% from 1 April 2026 (as shared).
- Minimum tax abolished (as shared).
- 5%/year for 5 years investment tax credit on qualifying capex (as shared).
- FIRS renamed Nigeria Revenue Service (NRS) as unified collector (as shared).
Why LTD Often Makes More Sense
To align with company-level incentives, a Limited Liability Company (LTD) is usually stronger than a bare Business Name.
- Better credibility for banks & corporates.
- Clearer separation between you and the business.
- More suitable for funding, contracts & scaling.
- Aligns with company-level CIT incentives, not just personal PIT.
Enterprise vs Limited Company (Simple)
The same hustle can feel very different on paper — and in how tax and risk apply.
Enterprise (Business Name)
- Legal status: Owner and business are the same.
- Credibility: Basic; okay for small hustle/start.
- Liability: Personal assets can be exposed.
- Growth: Fine for micro/small operations.
- Tax positioning: Mainly under personal tax (PIT).
Limited Company (LTD)
- Legal status: Separate legal entity.
- Credibility: Stronger for banks, partners, corporate clients.
- Liability: Better protection in many situations.
- Growth: Better for scaling, contracts & investment readiness.
- Tax positioning: Aligns with company-level incentives (CIT).
You can start as an Enterprise and later upgrade to LTD when you’re ready — TheMainCEOs can handle both.
VAT: Still 7.5% — with More Essentials Exempt
The VAT rate stays the same, but more day-to-day essentials are VAT-free (as shared).
Examples of VAT-Exempt Essentials
- Basic food items
- Residential rent
- Education services & learning materials
- Medical services & pharmaceuticals
- Public/shared road transport
- Agricultural inputs
- Baby products & sanitary towels
- Diesel, petrol & solar equipment
Why This Matters
- Helps households by making everyday essentials lighter on VAT.
- Some businesses must charge VAT, some don’t — depending on their sector and thresholds.
- Clean invoicing and record-keeping become more important.
TheMainCEOs can help structure your invoicing and basic record-keeping so you can separate VAT, income and expenses cleanly.
What To Do Next (Quick Checklist)
Use this as a starting point — then talk to us to implement properly.
Personal
- Get or update your TIN.
- Organise payslips, invoices and bank statements.
- Track income and expenses digitally (not just in your head).
- Use available reliefs: pension, housing, health, etc.
Business
- Keep your CAC registration up to date.
- Set up proper invoicing with VAT shown clearly where applicable.
- Maintain clean accounting records or accounting software.
- Review structure (Business Name vs LTD).
- Claim eligible exemptions, reliefs and allowances.
Proof: LTD Registrations Delivered
Real CAC documents (sensitive details blurred where needed) to show we don’t just talk — we deliver.
How TheMainCEOs Helps You
We don’t write laws — we help you structure your business so you can respond to them correctly.
Business Registration
- CAC Registration: Enterprise (Business Name), LTD, NGO.
- Upgrade from Business Name → LTD.
- Post-incorporation filings and documentation.
- Support with TIN and basic compliance setup.
Business Readiness & Systems
- Simple invoicing systems for your stage.
- Basic record-keeping and accounting structure.
- Separation between owner & business finances.
- Guidance for salary earners vs business owners.
Digital & Growth
- Branding and website design.
- Social media management and ads.
- Training & mentorship via learning portals.
- NYSC & youth-focused business formation packages.
Tell Us Your Situation in One Message
Fill this quick form and send it straight to WhatsApp — we’ll guide you from there.
FAQs
A few quick answers before you move forward.
1. Is the reform active already?
It is shared as being effective from 1 January 2026. Always confirm the final official text and start dates from government/authorised channels before making binding decisions.
2. What’s the difference between FIRS TIN and JTB TIN?
The JTB TIN is a unified identifier used across tax authorities, while the FIRS TIN is used at the federal level. In practice, issuance can be quite fast when portals are working — often around 48 hours, but always subject to system uptime and queue.
3. How fast can you process SCUML, and who needs it?
Typical timelines are around 7–14 days, but it depends on the queue. SCUML is often required for DNFBPs such as real estate, dealers in precious metals/jewellery, some consultants and NGOs — especially where banks request it for AML compliance.
4. What’s the difference between Enterprise and LTD?
Enterprise: owner = business, basic credibility, personal liability, better for
micro/small hustle.
LTD: separate legal entity, stronger credibility, better protection, better for
contracts, funding and tax alignment with company incentives.
5. Can you handle NGO / Incorporated Trustees registration?
Yes. This typically includes name reservation, constitution/minutes drafting, trustees’ declaration, two newspaper publications, CAC filing, certificate/status report and basic governance guidance.
6. Do you run ads and manage social media too?
Yes. We help with planning and optimisation for Meta, TikTok, Google, LinkedIn and more — plus social media management with content calendar, posting, engagement and analytics. Training is available on our learning platforms.
7. NYSC offers & training links?
NYSC-focused packages and offers are available on nysc.themainceos.com, while broader courses and mentorship can be accessed on learning.themainceos.com.
Disclaimer: This page is an educational guide based on a curated summary of proposed/communicated changes (including PIT bands and business reliefs as shared). It is not formal tax advice and may not reflect the final, official wording of any law or regulation. Always confirm details with authorised government publications or a qualified tax adviser before making decisions. TheMainCEOs focuses on business registration, structure and basic compliance setup, not on issuing professional tax opinions.