Overview

The Nigeria Tax Act, 2025 (Act No. 7) is a comprehensive tax legislation enacted by the Federal Republic of Nigeria, published in the Official Gazette on 26th June 2025. The Act establishes a unified framework for taxation of income, profits, and gains for individuals and companies, including specialized sectors such as petroleum operations. It comprises three chapters: Chapter One covers objectives and application; Chapter Two details taxation of income of persons, including imposition of tax, taxation of resident and non-resident persons, ascertainment of profits and income, chargeable gains, rates of tax, development levy, and specialized trades or businesses like insurance, lottery, and mining; Chapter Three focuses on taxation of income from petroleum operations, including hydrocarbon tax, ascertainment of chargeable profits, and additional chargeable tax. Key provisions include tax rates for companies and individuals, allowable and non-allowable deductions, basis for computing assessable profits, and rules for chargeable gains on assets. The Act emphasizes compliance, with sections on presumptive taxation, proof of claims, and treatment of partnerships, trusts, and settlements. Entities in export processing zones and collective investment schemes are also addressed. The Act repeals and replaces previous tax laws, reflecting Nigeria's efforts to modernize its tax system.

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