New year, new you, new tax laws. 

The recent changes in Nigeria’s tax legislation have left people trying to make a living in a state of confusion, and that’s putting it lightly. Entrepreneurs, content creators, 9-5 workers, and those working with international organisations, whether it’s understanding what’s changed or if you now have to pay remit on income you can’t quite explain, our X (formerly Twitter) Space held on Tuesday, 13 January 2025, offers the answers you need. 

The space was moderated by Tobilola Ajibola, the campaign lead for our #ShiftTheStory campaign. Our sole speaker was Agbada S. Agbada, a seasoned legal professional and Senior Associate, Aluko & Oyebode. 

Here are three things to know about the new laws before you start remitting. 

1. It’s Not Just One Tax Law

Firstly, the new laws were aimed at unifying the old ones. Formerly, the Nigeria Tax Act 2025, Nigeria’s primary tax laws were scattered across several pieces of legislation. These include the Companies’ Income Tax Act, the Personal Income Tax Act, the Value Added Tax Act and others. The new regime consolidates all these laws into a single, reliable document: the Nigerian Tax Act (NTA). 

These laws were also backed by their administrative acts, which governed the rules and procedures concerning administration. Additionally, they have also been consolidated into the Nigeria Tax Administration Act. 

Alongside these are the Nigeria Revenue Service (NRS) Establishment Act and the Joint Revenue Board (JRB) Establishment Act. The NRS now replaces the Federal Inland Revenue Service as Nigeria’s central authority, with the JRB established to coordinate, harmonise and resolve disputes under the new system. 

2. Everyone is Involved 

Secondly, the new law requires everyone earning income to remit taxes to the authorities in their domiciled states. This means that everyone whose account is credited, for one reason or another, will be expected to pay. Fortunately, there are some reliefs and adjustments within the Act that taxpayers can take advantage of. 

Tax is calculated at increasing rates on your total annual income, up to 25% on any income above ₦50 million, with the first ₦800,000 taxed at 0%. 

3. Not All Tax Payment Processes are the Same 

Now that we’ve established that we’re all paying tax, whether we like it or yes, it’s important to have a fair understanding of how it’ll be done. 9-5ers are expected to remit monthly through their employers. Entrepreneurs and company owners should look into the specifics of what is required from them and the sort of exceptions they’re subject to, depending on the type of business entity. 

For remote workers, content creators, and those in a workforce without a corporate structure, remittances will occur at the end of the year. This means, throughout the year, you have to keep track of all the income you’ve received, subtract your expenses, assess yourself, and remit the balance. 

Finally, it’s important for everyone to keep track of their payments through the months and years. Certain perks and regulatory actions require us to provide tax clearance certificates. Generally, it’s also good to know if you’re having a shortfall or can get refunded for paying excess. 

Listen to the X Space here for full details on what was discussed!

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