Nigeria: Tax

Nigeria's new Presumptive Tax Regulations establish a simplified tax framework for informal sector businesses and individuals whose income cannot be accurately determined through standard assessment methods. The regulations introduce a 1% turnover-based tax system with specific exemptions for nano businesses, while also implementing a 2% capital gains tax on asset disposals.

Nigeria's new tax regime transitions from legislative reform to practical implementation, with the Nigeria Revenue Service rolling out electronic invoicing requirements for large taxpayers and a comprehensive Tax Identification framework. The International Monetary Fund has weighed in with recommendations for further revenue mobilisation, while the Tax Appeal Tribunal has set important precedents on the proper methodology for Best of Judgment assessments.

On 18 June 2026, Nigeria's Minister of Finance issued comprehensive transition guidelines for newly enacted tax legislation. These guidelines establish operational frameworks for implementing four major tax Acts that fundamentally reshape the country's tax administration and revenue collection systems. The transition rules address critical implementation questions for taxpayers, tax authorities, and stakeholders navigating Nigeria's reformed tax landscape.