Taxation: 50 Exemptions, reliefs for Nigerians under tax reforms regime –Official

*The Presidential Fiscal Policy and Tax Reforms Committee lists 50 exemptions, reliefs to boost the welfare of affected classes of Nigerian consumers, and promote the growth of small-scale businesses in the country’s economy

Emmanuel Akosile | ConsumerConnect

As Nigeria’s new tax laws became effective since January 1, 2026, it is has been noted that the new regulations will provide several reliefs and exemptions for low-income Nigerians, average taxpayers, and small businesses in the country’s economy.

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The following are the reliefs that will boost the welfare of these classes of consumers, and promote the growth of small-scale businesses, courtesy of the Nigeria Revenue Service (NRS):

𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐨𝐫 𝐏𝐀𝐘𝐄

Exempts individuals earning the national minimum wage or less Annual gross income up to N1,200,000 (translating to about N800,000 taxable income) is exempt Reduced PAYE tax for those earning annual gross income up to N20 million Gifts (exempt) 𝐀𝐥𝐥𝐨𝐰𝐚𝐛𝐥𝐞 𝐃𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧𝐬 & 𝐑𝐞𝐥𝐢𝐞𝐟𝐬 𝐟𝐨𝐫 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥𝐬

Pension contribution to PFA National Health Insurance Scheme National Housing Fund contributions Interest on loans for owner-occupied residential housing Life insurance or annuity premiums Rent relief – 20% of annual rent (up to N500,000)

𝐏𝐞𝐧𝐬𝐢𝐨𝐧𝐬 & 𝐆𝐫𝐚𝐭𝐮𝐢𝐭𝐢𝐞𝐬 – 𝐄𝐱𝐞𝐦𝐩𝐭

Pension funds and assets under the Pension Reform Act (PRA) are tax-exempt. Pension, gratuity or any retirement benefits granted in line with the PRA Compensation for loss of employment up to N50 million

𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐆𝐚𝐢𝐧𝐬 𝐓𝐚𝐱 (𝐂𝐆𝐓) – 𝐄𝐱𝐞𝐦𝐩𝐭

Related News 50 exemptions and reliefs in new tax administration PAYE cuts boost workers’ pay – Oyedele NLC urges accountability amid tax overhaul Sale of an owner-occupied house Personal effects or chattels worth up to N5 million Sale of up to two private vehicles per year Gains on shares below N150 million per year or gains up to N10 million Gains on shares above exemption threshold if the proceed is reinvested Pension funds, charities, and religious institutions (non-commercial)

𝐂𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 (𝐂𝐈𝐓) – 𝐄𝐱𝐞𝐦𝐩

Small companies (turnover not more than N100 million and total fixed assets not more than N250 million) pay 0% tax Eligible (labelled) startups are exempt Compensation relief – 50% additional deduction for salary increases, wage awards, or transport subsidies for low-income workers Employment relief – 50% deduction for salaries of new employees hired and retained for at least three years.

Tax holiday for the first 5-years for agricultural businesses (crop production, livestock, dairy etc) Gains from investment in a labeled startup by venture capitalist, private equity fund, accelerators or incubators

𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐋𝐞𝐯𝐲 – 𝐄𝐱𝐞𝐦𝐩𝐭 Small companies are exempt from 4% Development Levy 𝐖𝐢𝐭𝐡𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐓𝐚𝐱 – 𝐄𝐱𝐞𝐦𝐩𝐭 Small companies, manufacturers and agric businesses are exempt from withholding tax deduction on their income Small companies are exempt from deductions on their payments to suppliers

𝐕𝐚𝐥𝐮𝐞 𝐀𝐝𝐝𝐞𝐝 𝐓𝐚𝐱 (𝐕𝐀𝐓) – 0% 𝐨𝐫 𝐄𝐱𝐞𝐦𝐩𝐭

Basic food items – 0% VAT Rent – Exempt Education services and materials – 0% VAT Health and medical services Pharmaceutical products – 0% VAT Small companies (N100m turnover) are exempt from charging VAT Diesel, petrol, and solar power equipment – VAT suspended or exempt Refund of VAT on assets and overheads to produce VATable or 0% VAT goods and services Agricultural inputs – fertilizers, seeds, seedlings, feeds, and live animals Purchase, lease or hire of equipment for agric purposes Disability aids – hearing aids, wheelchairs, braille materials Transport – shared passenger road transport (non-charter) Electric vehicles and parts – exempt Humanitarian supplies – exempt Baby products Sanitary towels, pads or tampons Land and building

𝐒𝐭𝐚𝐦𝐩 𝐃𝐮𝐭𝐢𝐞𝐬 – 𝐄𝐱𝐞𝐦𝐩𝐭

Electronic money transfers below N10,000 Salary payments Intra-bank transfers for transfer of Transfers of government securities or shares.

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