Latest Nigerian Tax Laws March 2026 Update

“Latest Nigerian Tax Laws March 2026 UpdateAs of March 2026, Nigeria’s fiscal landscape has undergone its most significant transformation yet. Following the implementation of the Nigeria Tax Act 2025 on January 1st, the Federal Inland Revenue Service (FIRS) has officially transitioned into the Nigeria Revenue Service (NRS) with expanded digital powers. The focus this month is on the new Presumptive Tax Framework aimed at the informal sector.The New 1% Informal Sector TaxSigned into law in early March 2026, a new 1% flat tax now applies to the turnover of informal-sector businesses. However, there is a major relief: Nano and small businesses with an annual turnover below ₦12 Million are 100% exempt. This policy aims to formalize the economy without overburdening micro-traders. For those above the threshold, registration via the NRS digital platform is now mandatory.Key 2026 Statutory ChangesIndividual Tax-Free Threshold: The first ₦800,000 of annual income remains tax-free. Earnings above ₦50M are now taxed at a top marginal rate of 25%.4% Development Levy: This consolidated levy has officially replaced the Tertiary Education Tax and NITDA levy for companies with turnover above ₦100M.Rent Relief: Taxpayers can now claim a 20% deduction on annual rent (capped at ₦500,000) against their taxable income.Compliance Alert: The NRS has begun enforcement of the 15% Minimum Effective Tax for large companies with turnover exceeding ₦50B. For more on how this affects your payroll, see PAYE Guide 2026. Visit NRS.gov.ng for the full March 2026 regulatory circular.”