Skip to main content

The New Tax Laws

By Oluwa Extone


Post 1: The ₦800k Tax Law — What It Means for Your Take-Home Pay

​Starting January 1, 2026, the Nigeria Tax Reform Act will officially change how millions of Nigerians calculate their salaries. Here is the simple breakdown of who wins and who pays.

​1. The "Zero Tax" Bracket

​If your total annual income is ₦800,000 or less (roughly ₦66,667 per month), you are now 100% exempt from personal income tax. You keep every kobo you earn. This is specifically designed to provide "breathing room" for low-income earners struggling with inflation.

​2. The New "Rent Relief" Deduction

​This is a game-changer for middle-income earners. You can now claim a 20% deduction on your annual rent, capped at ₦500,000.

  • ​Example: If you earn ₦5 million a year and pay ₦1 million in rent, you can deduct ₦200,000 from your taxable income, lowering the amount the government can tax.      

    3. More Money in Your Pocket

    ​Because the tax brackets have been widened, even if you earn above ₦800k, your "effective tax rate" will likely drop. Financial experts estimate that someone earning ₦5 million annually could see an extra ₦50,000 to ₦100,000 in take-home pay over the year due to these new exemptions.

    ​4. Other Things Now Tax-Free:

    • ​Baby Products & Basic Foods: 0% VAT.

    • ​Educational Materials: 0% VAT.

    • ​Small Businesses: Companies with a turnover below ₦50 million pay zero corporate tax.

    ​Post 2: The 2026 "Budget of Consolidation" — Infrastructure Deep Dive

    ​President Tinubu’s ₦58.18 trillion budget isn't just a number; it is a roadmap for construction across Nigeria. Here are the three infrastructure pillars that will affect you:

    ​1. ₦3.56 Trillion for "Connecting Nigeria"

    ​This is the second-largest sectoral allocation. The focus is on completing "Renewed Hope" road projects.

    • ​Priority: Completing federal highways that link food-producing rural areas to urban markets to help bring down food prices.
    • ​Port Modernization: Funding to upgrade Lagos and Eastern ports to speed up clearing and reduce "hidden costs" on imported goods.

    ​2. The Power Shift (Energy Infrastructure)

    ​The budget prioritizes the expansion of the national grid and support for solar power equipment, which is now VAT-exempt. The goal is to reduce the reliance on expensive diesel generators for small businesses.

    ​3. Agricultural Mechanization

    ​The government plans to establish 7 regional hubs for mechanized farming. This involves building silos and processing plants to reduce "post-harvest loss" (food rotting before it gets to you).  

Comments

Post a Comment

Popular posts from this blog

​❤️ Building an Unbreakable Bond: 10 Essential Ways to Nurture Your Marriage 💍

By Oluwa Extone
  ​​❤️ Building an Unbreakable Bond: 10 Essential Ways to Nurture Your Marriage 💍 Marriage is a beautiful journey, but like any garden, it requires consistent care and attention to truly flourish. In a world full of distractions and pressures, it's easy for couples to drift apart if they're not actively investing in their relationship. ​If you're looking for practical, heartfelt ways to strengthen your marital bond and keep the flame alive, look no further. Here are 10 essential things you can do to keep your marriage vibrant and resilient: ​ 1. Prioritize Quality Time (And Lots of It!) ​In our busy lives, quality time often gets pushed aside. Make intentional space for each other. This isn't just about date nights (though those are great!). It's about putting away phones during dinner, enjoying a walk together, or simply cuddling on the couch. Regular, undistracted time together reinforces your connection. ​ 2. Communicate Openly and Honestly ​This is the be...
Post a Comment
Read more

Femi Posh And David Afari Stabbed Wizkid’s Bodyguard, Emmanuel Obinna

By Oluwa Extone
Ifatal stabbing attack of Wizkid body guard, Mr Emmanuel Obinna at Club DNA on the Island last week. An Igbosere Magistrates Court heard today that the attack carried about by Poshills Entertainment boss, Olufemi Olusanya aka Femi Posh and his bouncer David Afari had to do with Wizkid’s debt. On Thursday the 15th of November 2018, Obinna was beaten and stabbed while attempting to pay part of Wizkid’s 15million Naira debt. 38-year Femi Posh and 29-year-old David Afari were arrested on Friday. They are currently facing 3-count charge of grievous bodily harm, unlawful assault and conspiracy. The next hearing will hold on Thursday the 17th of January 2019.
Post a Comment
Read more

Iyanya Set To Float New Record Label

By Oluwa Extone
Singer, Iyanya, has announced that he will be floating his own record label anytime soon. The ‘Kulere’ singer, who is signed to Made Men Music Group, took to Instagram some hours back, to announce that he will be flaoting his own record label soon. Iyanya, who also co-owns Triple MG, with business partner/ manager, Ubi Franklin, also touched on his music, revealing that he will eb dropping a new album soon. Singer, Iyanya, has announced that he will be floating his own record label anytime soon. The ‘Kulere’ singer, who is signed to Made Men Music Group, took to Instagram some hours back, to announce that he will be flaoting his own record label soon. Iyanya, who also co-owns Triple MG, with business partner/ manager, Ubi Franklin, also touched on his music, revealing that he will eb dropping a new album soon.
Post a Comment
Read more