Small Firms and Startups to Face Lower Taxes from 2026

Nigeria’s tax bosses plan to ease the load on small businesses and new ventures by slashing their tax bills starting next year. This move aims to help them grow without heavy fees eating into profits.

The head of the tax overhaul team said firms with yearly earnings under 50 million naira will pay just four per cent on profits, down from the current 30 per cent top rate. Startups in their first five years get a full break on company taxes to spark fresh ideas and jobs.

Other perks include dropping the 0.5 per cent levy on small outfits and letting them claim back cash spent on tools and setups. The changes fit a bigger shake-up to make taxes fairer and simpler, with a single filing spot for all payments.

Lawmakers have backed the plan, and it should kick in by January 2026 after final nods. Experts say it will free up funds for hiring and growth, helping small players thrive in a tough market.