EXPLAINER: 50 New Tax Exemptions, Reliefs Nigerians Will Enjoy from 2026!
EXPLAINER: 50 New Tax Exemptions, Reliefs Nigerians Will Enjoy from 2026!
Reported by Marian Opeyemi Fasesan | Sele Media Africa
Beginning January 1, 2026, the Nigerian government will implement a set of 50 tax reliefs and exemptions aimed at reducing the burden on low-income earners, small businesses, and informal sector players, as part of ongoing fiscal reforms.
Key Highlights:
- Minimum Wage Earners Exempted: Workers earning ₦30,000 or less monthly will no longer pay Personal Income Tax (PIT).
- No VAT on Basic Food Items: Staple goods like garri, rice, yam, bread, and beans remain VAT-exempt.
- SMEs Get Tax Breaks: Businesses earning ₦25 million or less per annum to enjoy full Company Income Tax exemption.
- Agriculture, Education, and Health Startups: Tax holidays of 3–5 years for startups in these sectors.
- Pension and Gratuity: Contributions and withdrawals remain tax-free, encouraging savings.
- Capital Gains Exemptions: Low-income property owners exempt from capital gains tax when selling primary residences.
Why It Matters:
- Targets inflation relief, especially for poor and vulnerable Nigerians.
- Encourages business formalisation and tax compliance.
- Aims to boost job creation and ease of doing business.
What to Watch:
- Enforcement by Federal Inland Revenue Service (FIRS) and state tax boards.
- Detailed implementation guidelines from the Ministry of Finance.
- Possible reviews of the policy in the 2026 Budget.
Sources:
- Presidential Tax Reform Committee Brief — Oct. 2025
- Federal Ministry of Finance Circular — Nov. 2025
- FIRS Official Statements
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