The Federal Government is expected to lose about N1.4 trillion in revenue in 2026 following a planned reduction in Company Income Tax (CIT), according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.
Oyedele said the projected revenue shortfall is linked to a 5 percentage-point cut in CIT, which will see the tax rate reduced from 30% to 25% starting January 2026. The policy forms part of a broader tax reform agenda aimed at improving Nigeria’s business climate and boosting investment.
He explained that although the reform would reduce government revenue in the short term, it is designed to stimulate economic growth, encourage compliance, and make the economy more competitive. As part of the changes, small businesses with annual turnover below N100 million will be exempt from paying company income tax.
The government maintains that the long-term benefits of the reforms will outweigh the immediate revenue loss, stressing that the new tax framework also includes measures to protect low-income earners and simplify tax administration. Visit www.jocomms.com for more news.
