The Federal Government is projected to forgo about N1.4 trillion in revenue in 2026 following plans to reduce the corporate income tax (CIT) rate from 30% to 25% under its newly consolidated tax reform framework.
The chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, said the revenue impact will result from the reforms, which are scheduled to take effect on January 1, 2026.
Oyedele explained that the CIT reduction is aimed at modernising Nigeria’s tax system, improving the business environment and boosting competitiveness for investment, describing the projected revenue loss as a deliberate policy trade-off.
Under the framework, small companies will continue to enjoy zero corporate income tax, while medium and large companies will pay the reduced 25% rate starting in 2026.
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The committee said the reforms are expected to ease the tax burden on formal businesses, encourage compliance and stimulate economic activity.
While acknowledging concerns over the scale of revenue foregone in the first year, the committee maintained that the reforms are designed to broaden the tax base, reduce inefficiencies and deliver stronger fiscal outcomes over the medium to long term.