FG unveils guidelines for smooth transition to new tax regime

…Says new tax laws take full effect January 1, 2026

By Adebola Isimijola, Lagos

The Federal Government has released comprehensive transition guidelines for implementing the Tax Acts 2025, setting out the procedures for migrating from the repealed tax laws to Nigeria’s new tax regime, which comes into force on January 1, 2026.

The development was contained in a statement issued on Thursday by the Presidency through State House Digital.

According to the statement, the guidelines, prepared by the Federal Ministry of Finance, provide direction for taxpayers, tax practitioners, revenue authorities and other stakeholders on managing legal, administrative and compliance issues arising from the transition to the new tax framework.

The government said the Tax Acts 2025—which include the Nigeria Revenue Service (Establishment) Act, the Nigeria Tax Act, the Nigeria Tax Administration Act and the Joint Revenue Board (Establishment) Act—will take effect on their respective commencement dates as provided in the laws, with the Nigeria Tax Act becoming operational from January 1, 2026.

It explained that tax liabilities, assessments, audits, investigations, disputes and enforcement actions relating to periods before the commencement of the new regime would continue to be governed by the repealed tax laws.

Similarly, tax returns for accounting periods ending before January 1, 2026, will be filed under the existing tax laws, while returns for accounting periods ending from that date onward will be administered under the new tax framework.

The statement added that the guidelines also address the treatment of income taxes, transaction taxes, development levies, tax incentives, exemptions, record-keeping obligations and transactions spanning both the old and new tax regimes.

It further stated that existing tax incentives and exemptions granted under the repealed laws would remain valid until their expiration, while new applications and pending requests would be considered under the provisions of the Tax Acts 2025.

Speaking on the release of the guidelines, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, said the document provides a framework for managing transitional issues while ensuring that the new tax laws are not applied retrospectively.

He described the Tax Acts 2025 as “a significant milestone in Nigeria’s tax reform programme,” adding that the guidelines clearly outline how existing obligations, ongoing matters and future transactions will be treated under the new tax regime.

According to the minister, the guidelines are anchored on three key principles—clarity, fairness and administrative certainty—to ensure uniform implementation across the Nigeria Revenue Service, State Internal Revenue Services, the FCT Internal Revenue Service, Local Government Revenue Committees, tax practitioners and taxpayers nationwide.

The Federal Government reaffirmed its commitment to building a transparent, efficient and modern tax system that supports economic growth, strengthens revenue administration, promotes voluntary tax compliance and enhances Nigeria’s investment climate.