Tinubu Signs Tax Reform Bill Into Law, Consolidating Four Revenue Acts

President Bola Tinubu has signed the Tax Reform Bill 2026 into law at a ceremony held at Aso Rock State House in Abuja, fundamentally reshaping Nigeria's revenue architecture for the first time in over two decades.

The legislation consolidates four major revenue statutes — the Companies Income Tax Act, the Personal Income Tax Act, the Value Added Tax Act, and the Stamp Duties Act — into a single, modernised framework.

**What the Law Changes**

Among the most consequential provisions is the extension of Value Added Tax to digital services. Foreign companies providing streaming, cloud computing, and digital advertising services to Nigerian consumers will now be required to register with FIRS and remit VAT on transactions.

The legislation also introduces a simplified tax regime for small and medium enterprises, reduces the headline corporate income tax rate from 30 to 25 per cent, and overhauls transfer pricing rules to prevent profit-shifting by multinationals.

**The Path to Passage**

The bill had a contentious journey through the National Assembly, with northern governors initially opposing certain provisions they argued would disadvantage states that depend less on formal economy activity. A revised revenue-sharing formula was eventually negotiated and incorporated into the final text.

**Business Community Reacts**

The Lagos Chamber of Commerce and Industry described the bill's passage as a positive development for long-term investment confidence, while noting that the transition period for compliance would be critical. The Chamber called on FIRS to issue clear implementation guidelines to avoid uncertainty.

**Implementation Timeline**

The law takes effect from January 2027, giving businesses and tax authorities an 18-month window to adjust systems, update contracts, and train staff. The Federal Inland Revenue Service is expected to publish transition rules within 90 days.