On June 26, 2025, President Bola Ahmed Tinubu signed four landmark tax reform bills into law, modernising Nigeria’s tax system and aiming to reduce compliance burdens.
The reforms: the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act, and Joint Revenue Board Act, took effect on January 1, 2026.
For Enhancing Financial Inclusion & Advancement (EFInA), a financial sector market catalyst driving financial inclusion across Nigeria, the tax reform could make or mar vulnerable Nigerians.
In its newsletter released today, 9th January, 2026 EFInA suggests that for millions of Nigerians, from teachers and artisans to market women and informal traders, the reforms promise relief: Individuals earning ₦800,000 or less annually are exempt from personal income tax; small companies with turnover under ₦100 million pay no company tax; essential goods like basic foods, medicines, education materials, and electricity now carry zero VAT; and a newly established Tax Ombudsman office provides channels to challenge unfair treatment.
But, EFInA’s 2023 Access to Financial Services survey, however, highlights potential pitfalls. Many rural and informal operators lack formal accounting systems, bank statements, or digital tools.
Women-owned businesses, already underrepresented in formal financial systems, could face hurdles if compliance requires documentation they don’t have.
Without targeted awareness, digital access, and compliance support, these reforms risk unintentionally widening the gender and regional gaps they aim to close.
“Tax reform can either protect vulnerable Nigerians or add new burdens,” EFInA notes. “Consumer protection means ensuring these policies benefit those they are intended to serve, not create new obstacles.”
As Nigeria moves forward, the question remains: EFInA is asking, will the new tax system be a lifeline for low-income households, or another barrier in the journey to financial inclusion?
[Culled from EFInA Newsletter]
