Nigeria’s 2026 New Taxation System, Is It Really Beneficial to Nigerian Citizen

[Barrykbest]

Begining from January 2026, Nigeria is set to roll out a restructured taxation framework publicly aimed at improving government revenue and reducing dependency on oil income.

The new system reportedly includes measures to expand the tax base, introduce digital tax collection channels, and bring informal businesses into the formal tax net.
Some analysts believe this reform could help strengthen fiscal stability, attract investors, and boost accountability in public finance.

However, others argue that with rising inflation, unemployment, and low purchasing power, this new taxation plan might burden the average citizen even more — especially small businesses and low-income earners.
As the government prepares to implement this new model, i want to ask, Will this reform actually translate into better infrastructure, jobs, and public services or is it just another way to squeeze citizens further?
What’s your take on this taxation system is it really beneficial to Nigerian citizens?

https://youtu.be/ey7Pl3xmMMY?si=-VtKldFGL_bMe_LU

[Curious T]

There is no way a twenty five percent flat rate of income tax will be better for the economy. This is just politicians taking advantage of their position one more time. I don't understand why the people are not fighting against it. A tax reform where even a person earning a minimum wage will be eligible to pay the twenty five percent. It is insane. Even countries that don't have corrupt systems as much as Nigeria don't pay that high amount of income tax. The country is not the way it is because of lack of funds, the country is the way it is because those responsible care only about themselves. More taxes means more money for them to steal.

[BIT-BENDER]

The title is a but hilarious especially to Nigerians and anyone who resides in Nigeria. It hard to say anything that Nigerian government do is of any benefit to Nigerians I could mention many things on how the Nigerian government has fail it's citizens but some will be deviating from the post and the board.

The taxation system the government wants to impose on paper is meant to benefit the country and the citizens but a country with abundant natural resources yet the citizens hardly benefits anything and the economy is nothing to write home about I don't see how the present administration won't launder the proceeds from the taxation and that will cause so much unrest in the country.

[Charles-Tim]

What people are afraid most about is that thryy are not benefitting from the tax, that the officials (I mean the government officials) are corrupt and stealing from the citizens.

See the money FIFA gave NFF to build stadium or 2 stadia or so seen 2 or 3 years ago, the money was embezzled. There are many corruption in Nigeria, people are complaining that they do not think the government will use the money appropriately.

I think the taxes want to be used to service the international debt that Nigeria is owing. Maybe there may be more to it.

[DPHOR]

This the is reason why I do not like Nigerian and their plans, because if is the American or other countries they would create an employment opportunities before increasing taxation, but then, this is not done in Nigeria instead they Will would want to increase taxation without knowing what to do and when to do it.
Well, they can do whatever they want and her citizens would always survive, and I know even though things are worse than this they would still survive.

[₿itcoin]

As the government prepares to implement this new model, i want to ask, Will this reform actually translate into better infrastructure, jobs, and public services or is it just another way to squeeze citizens further?
What’s your take on this taxation system is it really beneficial to Nigerian citizens?

Nigerias new tax law simplifies many old laws, creates a single revenue agency &  introduces digital systems like e invoicing to make tax collection more efficient

Small companies are also getting some important tax breaks, which could help formalize and create jobs. But some business leaders fear that the new reporting will increase costs for small and medium enterprises &  informal workers. And while it is broadening the tax base, if not managed properly, the burden could fall on low income earners, a real concern

[Charles-Tim]

Small companies are also getting some important tax breaks, which could help formalize and create jobs.

What do you mean by this? Please explain it better in a way that we can understand.

[₿itcoin]

Small companies are also getting some important tax breaks, which could help formalize and create jobs.

What do you mean by this? Please explain it better in a way that we can understand.

Hi, Charles-Tim, nice to see you again man ! According to the new Nigerian Tax Act, the definition of a small company has changed. The Nigerian Tax Act states that businesses with a turnover of 100 million naira or below and fixed assets of 250 million naira or below pay 0% tax on key taxes.

This means that they are completely exempt from Corporate Income Tax, Capital Gains Tax &  the newly added Development Levy.

This change is intended to reduce the tax burden on micro &  small enterprises, to ensure their development &  expansion