As part of its ambitious economic reform agenda, the federall government has announced plans to reduce Nigeria’s Company Income Tax (CIT) rate from 30% to 25% starting in 2026. This landmark move, spearheaded by Taiwo Oyedele, Chair of the Presidential Committee on Fiscal Policy and Tax Reforms, is expected to boost domestic business expansion, attract foreign direct investment (FDI), and strengthen Nigeria’s position in the global economy.
For three decades, the CIT rate has remained at 30%, unchanged since 1996. The Tinubu government’s decision marks a strategic shift towards a more business-friendly fiscal policy. Experts say that the 5% reduction will free up capital for reinvestment, stimulate entrepreneurship, and create jobs across sectors.
Oyedele has been at the forefront of the reform, leading efforts to ensure Nigerians understand the benefits of the new tax policies and how they will positively impact both citizens and the broader economy. “This is not just a reduction in tax rates,” he noted. “It is a signal that Nigeria is open for business, and these reforms are designed to support people, businesses, and the country at large.”
Analysts expect that the CIT cut will strengthen investor confidence, drive private-sector development, and encourage Nigerian companies to expand operations, aligning with the Tinubu government’s vision of a thriving, diversified economy.
The reform highlights the administration’s commitment to fiscal policies that empower businesses, support innovation, and generate long-term economic impact, signaling a new chapter in Nigeria’s economic transformation.
