• Tax reforms in Nigeria aim to simplify taxes for entrepreneurs.
• Small businesses earning below ₦100m may qualify for 0% corporate tax.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
• Informal businesses below ₦12m income are fully exempt from company income tax.
• Proper record-keeping helps entrepreneurs benefit from new tax policies.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Prof. Taiwo Oyedele, has urged young entrepreneurs to adopt proper record-keeping so they can take full advantage of the new tax reforms in Nigeria designed to support small businesses.
Prof. Taiwo Oyedele made the call on Wednesday in Abuja during the closing ceremony of the 7th phase of the MTN Foundation ICT and Business Skills Training programme.
The training programme produced nearly 6,000 young Nigerians, who were formally inducted into the alumni network of tech-enabled entrepreneurs.
Speaking at the event, Oyedele explained that Nigeria is currently undergoing a major fiscal and economic reform aimed at building a tax system that is simpler, fairer, and more supportive of entrepreneurs and small businesses.
According to him, for many years the country operated a tax system that was too complicated and fragmented, making it difficult for small business owners to comply with tax rules.
He said many entrepreneurs avoided registering their businesses not because they wanted to break the law, but because the tax system appeared confusing and difficult to understand.
“The new tax reforms are not about collecting taxes to burden you. They are designed to support small businesses, protect informal enterprises, and create an environment where entrepreneurs can grow, innovate, and sustain their businesses,” Oyedele said.
He explained that under the ongoing tax reforms in Nigeria, small businesses registered with the relevant authorities and earning less than ₦100 million annually, with assets not exceeding ₦250 million, will enjoy a 0 percent corporate income tax rate.
Oyedele also noted that informal businesses earning below ₦12 million annually will be completely exempt from company income tax.
For businesses earning above that threshold, the tax will be limited to just one percent of their total turnover, which he described as a fair approach that allows businesses to grow without heavy financial pressure.
Another major benefit of the reforms, he said, is that small businesses with annual turnover of up to ₦100 million will not be required to charge Value Added Tax (VAT) on their goods and services.
According to him, the measures are specifically designed to reduce the burden on small enterprises and encourage more Nigerians to formalise their businesses.
Oyedele emphasised that keeping accurate financial records remains one of the most important steps entrepreneurs must take to enjoy these benefits.
He encouraged the young entrepreneurs at the event to adopt good accounting habits early, explaining that proper documentation will make it easier for them to access government support, financial services, and tax incentives.