The Nigeria Tax Act, 2025, sets a 25% personal income tax rate only on the portion of annual chargeable income above ₦50 million, countering Sen. Ireti Kingibe’s claim that everyone would face that rate.
Premium Times reported that Kingibe, a senator representing Nigeria’s Federal Capital Territory, made the remarks to supporters in Abuja. The outlet said she speculated that the government might be reluctant to begin implementation before the 2027 election; she did not provide a definite date for a later start. When contacted by Premium Times, she said: “It has not been implemented yet.”
Under the Act’s schedule, the first ₦800,000 of chargeable income carries a 0% rate. The next bands are taxed at 15%, 18%, 21% and 23%, with the 25% bracket applying to the amount exceeding ₦50 million. Crossing into that bracket therefore does not reset the tax rate on a person’s entire income.
Chargeable income can differ from gross earnings because the Act allows certain deductions and exemptions. Section 30 permits qualifying pension contributions to be deducted. For eligible renters, the law allows relief equal to 20% of rent paid, capped at ₦500,000; the claim must be filed in writing and include an accurate declaration. A worker qualifies for the minimum-wage exemption when gross income from the job does not exceed the national minimum wage.
The government has described the wider four-act reform package as an effort to harmonize Nigeria’s fragmented tax rules. The Nigeria Tax Act names Jan. 1, 2026, as its commencement date. In April, the State House said the new tax laws had become fully operational in January, a government account that differs from Kingibe’s statement that implementation had not begun.
