Federal Inland Revenue Service (FIRS) don clarify say the 4% Development Levy wey Nigerians dey worry about no be new tax at all. According to the agency, na just combination of plenty old charges wey businesses dey pay separately before.
FIRS drop this explanation for statement on Wednesday, as many people don dey fear say the new Nigeria Tax Act (NTA) and Nigeria Tax Administration Act (NTAA) go add more burden on companies once dem start for January 2026.
The agency talk say most of the noise na because people misunderstand how the new levy structure work.
Levy Replace Multiple Old Charges
FIRS explain say the 4% levy replace charges like Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy.
Dem talk say joining all of them into one levy go help businesses save money, remove wahala and stop the era where different agencies dey collect multiple levies anyhow.
Small businesses and foreign companies wey no dey operate for Nigeria go enjoy exemption.
Free Trade Zone Incentives Still Intact
Many people been fear say the new laws go spoil Free Trade Zone (FTZ) benefits, but FIRS say the incentives never spoil.
Under the new rules, FTZ companies fit sell up to 25% of their products inside Nigeria without losing their tax-free status, and government give dem three years to adapt to the new system.
FIRS say the adjustment go stop companies wey dey misuse FTZ licence just to dodge tax but still compete for Nigeria market.
15% Minimum Tax for Big Companies
Another big change be the 15% Minimum Effective Tax Rate (ETR) wey go apply to multinational and large Nigerian companies. FIRS say dem follow global agreement wey over 140 countries don sign.
If Nigeria no follow, multinational home countries for abroad go collect the remaining tax, and Nigeria go lose revenue. With this new rule, the money go remain for Nigeria.
New Investor Incentives
For capital gains tax, wey dem now dey call “chargeable gains,” investors go enjoy new reinvestment relief. If person sell shares and reinvest the money inside another Nigerian company within the same year, tax no go apply.
Dem also update loss rules, protect small investors with low-value exemptions and block loopholes wey companies been dey use hide business income as capital gain.
CGT No Go Work Backwards
FIRS also remind people about wetin Taiwo Oyedele talk earlier: capital gains tax no go apply to old investments before 2026.
To protect investors, government go reset the cost base to either the original buying price or the market value as at December 31, 2025 — whichever higher.
