From January 1, 2026, the Federal Government will begin enforcing 50 tax exemptions and reliefs under Nigeria’s new tax laws, with focus on low-income earners, average taxpayers, and small businesses.

President Bola Tinubu signed four tax reform bills into law on June 26, including:

1. Nigeria Tax Act (NTA) 2025
2. Nigeria Tax Administration Act (NTAA) 2025
3. Nigeria Revenue Service (Establishment) Act (NRSEA) 2025
4. Joint Revenue Board (Establishment) Act (JRBEA) 2025

Minister of Finance Wale Edun said the framework will strengthen the economy and improve citizens’ purchasing power.

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, confirmed the exemptions, saying they will “provide many reliefs and exemptions for low-income earners, average taxpayers, and small businesses.”

FULL LIST OF EXEMPTIONS & RELIEFS

Personal Income Tax

People earning minimum wage or below

Individuals with annual income ≤ ₦1,200,000

Reduced PAYE for those earning ₦20m/year

Gifts not subject to income tax

Allowable Deductions

1. Pension contributions
2. National Health Insurance Scheme (NHIS) contributions
3. National Housing Fund (NHF) contributions
4. Interest on owner-occupied home mortgage
5. Life insurance premiums
6. Rent relief: 20% capped at ₦500,000

Pensions & Retirement

1. Pension funds under the Pension Reform Act
2. Retirement benefits
3. Compensation up to ₦50m for loss of employment

Capital Gains Tax Exemptions

1. Sale of owner-occupied residential houses
2. Personal effects
3. Up to two private vehicles per year
4. Share gains within approved limits

Companies Income Tax

1. Small companies
2. Turnover ≤ ₦100m
3. Fixed assets ≤ ₦250m

Agricultural businesses

1. Registered startups
2. Employment-creation incentive
3. Incentives for investments in startups

Development Levy

Small businesses exempt from 4% levy

Withholding Tax

Exemption for small businesses on supplies and payments.

Value-Added Tax (VAT)

Exemptions for:

1. Basic food items
2. Rent (residential accommodation)
3. Health services
4. Educational services
5. Pharmaceuticals
6. Baby products
7. Sanitary pads & hygiene products
8. Disability aids and appliances
9. Agricultural inputs & equipment
10. Electric vehicles & components
11. Shared/passenger road transport
12. Small businesses below ₦100m turnover (do not charge VAT)

Stamp Duties

1. Electronic transfers below ₦10,000
2. Salary payments
3. Intra-bank transfers
4. Government securities
5. Transfers of shares and stocks

Oyedele also urged Nigerians to nominate digital content creators to receive tax-education training, saying the top 20 nominees will be selected. Nominations close November 9, 2025.

Nyesom Wike, minister of the federal capital territory (FCT), says former Vice-President Atiku Abubakar had no alternative but to leave the Peoples Democratic Party (PDP).

Atiku resigned from the PDP on July 14, stating that the party had deviated from its founding principles and was struggling with “irreconcilable differences”.

Speaking on Politics Today, a Channels Television programme on Monday, Wike said Atiku’s departure was expected because he could not use the party to pursue his personal political interests.

“Atiku has no choice but to leave because he wanted to use the PDP, but knowing that I’m there, he cannot get that platform,” the FCT minister said.

He accused Atiku and other defectors of weakening the PDP, saying they contributed to the internal crisis affecting the party. “Those are people who destroyed the party,” he said, adding, “How many times has he left PDP and returned?”

Wike also criticised Douye Diri, governor of Bayelsa, who defected to the All Progressives Congress (APC) on Monday. “Diri has said he has left PDP, and I’m one of the happiest persons today,” he said.

He recalled that Diri and Oyo governor Seyi Makinde previously vowed to protect the PDP from collapse but has now left the party. “The same him and Makinde said they would not allow anybody to destroy the PDP and fall to the gutter. Who has entered the gutter today?” Wike asked.

The minister accused Diri of hypocrisy, noting that the Bayelsa governor once described others as “undertakers” attempting to bury the PDP, yet has now joined the APC.

“If I heard what he said, he claimed that some people came into the party as undertakers,” Wike said. “I didn’t just come into the party; I have been a bona fide member since 1998.”

He listed his political journey, noting he started as a local government chairman before serving as governor of Rivers state for eight years. “When Diri was in PDP, he was one of those who said I was working for APC to destroy PDP,” Wike said. “He was the chairman of the zoning committee of the party.”

Wike further mocked Diri, saying he should be grateful for his new political path. “If he were to say I am working with APC, Diri should come to me and say, ‘Thank you, master,’” Wike said. “He should pay me and say, ‘Thank you for opening my eyes to see the light,’ if he were true.”

He maintained that his loyalty to the PDP has never been in doubt, despite the party’s internal issues. “When I was a governor under Buhari, everything was done to kill PDP, but I said no way—I fought,” he said.

Wike insisted that leadership remains crucial and said individuals often look for excuses while blaming others. “Leadership is key to everything you are doing. Everybody wants to make excuses. The man they claimed is killing PDP is still in the PDP,” he said.

Nyesom Wike, minister of the federal capital territory (FCT), has dismissed claims that Christians are being targeted and killed in Nigeria under President Bola Tinubu’s administration, describing the allegations as politically driven.

Wike made the remarks on Monday during an interview on Politics Today, a Channels Television programme, saying the genocide claim amounts to “politics taken too far.”

He stressed that he is a Christian and comes from a Christian family, adding that the allegation is an “indictment” on him and other Christian appointees in the current administration. “I am a Christian… This is politics taken too far,” he said.

Wike pointed out that key security leaders in Nigeria — including the inspector-general of police, the director-general of the Department of State Services, and the chief of defence staff — are Christians, questioning why anyone would believe the government supports harm against Christians.

He accused the opposition of stoking the claims because they lack a strong platform to challenge President Tinubu in future elections, particularly in 2027. According to him, the opposition is seeking divisive narratives after witnessing their own collapse.

The minister said no Nigerian leader takes pleasure in violence or killings in any part of the country.

His remarks follow threats by US President Donald Trump, who claimed Christians are being killed in Nigeria and warned of potential military action if the country fails to stop the alleged attacks.

In a post on Truth Social, Trump said he instructed the Pentagon to prepare a “possible plan of attack” in Nigeria, insisting Christianity faces an “existential threat” in the country. He reiterated the warning the next day, suggesting the US could consider airstrikes or troop deployment.

Responding to Trump’s comments, Wike said he prefers to believe the US president was acting on misinformation, calling the situation “unfortunate.”