Nigeria’s business policies are changing fast, and these changes are already affecting how businesses are registered, taxed, and operated across the country. From new tax reforms to digital and trade-related policies, the Nigerian government is making deliberate efforts to reshape the business environment. Whether you are a startup founder, small business owner, freelancer, or investor, understanding these policies can help you stay compliant, reduce unnecessary costs, and take advantage of emerging opportunities. In this article, we break down the top Nigerian government business policies for 2025/2026 and explain what they mean for businesses in simple terms.
Top 5+ Nigerian Government Business Policies
Major Tax Reform and New Tax Framework (Effective January 1, 2026)
One of the most important government business policies in Nigeria for 2025/2026 is the comprehensive tax reform introduced by the federal government. The new tax framework is designed to simplify the tax system, improve compliance, increase government revenue, and make Nigeria more attractive to both local and foreign investors.
Under the new tax regime, investors in priority sectors are now eligible for a 5 percent annual tax credit, which is aimed at encouraging long-term capital investment. Large multinational companies and major local firms are also subject to a minimum effective tax rate of 15 percent on net income. This aligns Nigeria with global tax standards while ensuring that large corporations contribute their fair share.
For small Businesses and medium-sized businesses, the reforms bring significant relief. Companies with an annual turnover of ₦100 million or less now enjoy tax exemptions or reduced tax obligations. This policy is expected to ease the financial burden on SMEs, allowing them to reinvest more profits into growth, employment, and expansion.
The government has also addressed long-standing concerns around multiple taxation. Double taxation on dividends has been eliminated, and the exemption thresholds for capital gains tax have been increased to stimulate investment activity. In addition, several overlapping levies have been streamlined into fewer, clearer charges, while essential goods such as food items and medical products have been exempted from VAT to help reduce business and consumer costs.
Overall, these tax reforms are aimed at strengthening Nigeria’s competitiveness, supporting MSMEs, attracting foreign direct investment, and creating a more predictable tax environment for businesses.
Nigeria Tax Reform Acts 2025: What Business Owners Must Know
The Nigeria Tax Reform Acts 2025 officially took effect on January 1, 2026, and compliance is now mandatory for all individuals and businesses operating in Nigeria. One key requirement under this policy is proper Tax Identification Number (TIN) registration, which is now closely linked to banking services.
For individuals, the National Identification Number (NIN) now serves as the official TIN. This means your NIN must be linked to your bank account to avoid service restrictions. For businesses, the Corporate Affairs Commission (CAC) Registration Number, also known as the RC Number, functions as the business TIN. However, business owners who use personal bank accounts for business transactions are required to obtain a separate business TIN to remain compliant.
How to Comply with the New TIN Requirements
To comply with the new Nigerian tax policies, individuals can link their NIN using their bank’s mobile app, USSD code, online banking platform, or by visiting a physical bank branch. Businesses and individuals can also retrieve or verify their TIN free of charge through the Joint Tax Board portals at taxid.jtb.gov.ng or taxid.nrs.gov.ng. For those who need additional support, in-person assistance is available at Nigeria Revenue Service offices nationwide.
Why This Policy Matters for Nigerian Businesses
These reforms represent a major shift in how the Nigerian government approaches taxation and business regulation. For compliant businesses, the new policies offer clearer rules, reduced tax pressure for small enterprises, and better incentives for investment. For those who ignore them, however, non-compliance could lead to banking restrictions, penalties, or missed growth opportunities.
Ease of Doing Business Improvements
Improving the ease of doing business in Nigeria remains a major focus of government policy for 2025/2026. In recent years, the government has introduced several initiatives aimed at simplifying how businesses interact with regulators and reducing the cost of compliance. One key area of reform is the reduction of multiple taxation and overlapping regulatory requirements, which have historically made it difficult for businesses—especially small enterprises—to operate efficiently.
To further support taxpayers, transparency and accountability measures have been strengthened through the introduction of a Tax Ombudsman framework. This mechanism is designed to protect small taxpayers, address disputes fairly, and ensure that tax authorities operate within clear guidelines. In addition, the implementation of a National Single Window system for trade is expected to significantly reduce red tape in import and export processes by allowing businesses to submit documentation through a single digital platform. Together, these reforms are part of a broader strategy to improve Nigeria’s ease-of-doing-business performance, attract investment, and create a more predictable environment for local and foreign businesses.
Export Value Addition and Industrial Policy
Another important Nigerian government business policy for 2025/2026 is the renewed emphasis on export value addition and industrial development. Rather than exporting raw materials, the government is using policy tools to encourage local processing, manufacturing, and job creation within the country.
A notable example is the restriction on the export of raw shea nuts, which is intended to drive local processing and strengthen Nigeria’s cosmetics and personal care value chain. By promoting downstream industries, the policy aims to increase export earnings while creating employment opportunities. Beyond agriculture, the government is also focusing on strengthening industrial exports through export processing zones, trade incentives, and infrastructure support. These measures are designed to boost Nigeria’s competitiveness in regional and global markets while reducing reliance on raw commodity exports.
Digital Economy and Infrastructure Policies
Government business policies in Nigeria are not limited to taxation and trade; structural reforms in the digital economy and infrastructure are also playing a key role. As more businesses move online, the government is prioritizing policies that support digital growth, connectivity, and innovation.
Central to this effort is the National Broadband Plan (NBP) 2.0 and Project BRIDGE, which aim to expand broadband infrastructure nationwide, reduce internet costs, and improve access to reliable connectivity. These initiatives are expected to support ICT-driven businesses, digital startups, e-commerce platforms, and remote work opportunities. In addition, data sovereignty and local hosting requirements are being emphasized to encourage the growth of local data centers, strengthen Nigeria’s tech ecosystem, and protect sensitive government and financial data. Together, these policies are positioning the digital economy as a major driver of business growth in Nigeria.
Green Economy and Future-Focused Incentives
As part of its long-term economic strategy, Nigeria is gradually adopting policies that support sustainable development and environmentally friendly business practices. For 2025/2026, government attention is shifting toward green energy and climate-conscious investments, especially in urban areas.
One key area of focus is the promotion of electric vehicles (EVs) and clean energy infrastructure. Through incentives for green energy projects and EV-related investments, the government is encouraging private sector participation in renewable power generation, charging infrastructure, and clean transportation solutions. New urban development guidelines are also beginning to incorporate requirements for EV charging facilities, signaling a future where sustainability becomes an integral part of doing business in Nigeria.
Financial Sector Reforms and the Cashless Economy Push
Although not strictly a tax policy, financial sector reforms introduced by the Central Bank of Nigeria (CBN) continue to have a strong impact on business operations. A major aspect of this push is Nigeria’s gradual transition toward a more cashless economy.
Under the updated CBN framework expected to take effect in 2026, cash withdrawal limits for both individuals and corporate entities have been introduced. These limits are aimed at modernizing the payment system, reducing the risks associated with large cash transactions, and curbing money laundering activities. For businesses, this means a greater emphasis on digital payments, point-of-sale systems, bank transfers, and other electronic payment channels. Companies that adapt early to cashless operations are likely to experience smoother transactions, better record-keeping, and improved financial transparency.
Why These Nigerian Government Business Policies Matter
Taken together, the Nigerian government business policies for 2025/2026 represent a deliberate effort to create a more structured, transparent, and growth-oriented economy. These reforms are designed to attract foreign and local investment by improving regulatory clarity and reducing operational barriers. They also aim to empower small and medium-sized enterprises through tax reliefs, simplified compliance, and better access to digital infrastructure.
By encouraging value addition and export-oriented industries, the government is working to move Nigeria away from raw material dependence toward higher-value production. At the same time, investments in digital infrastructure, green energy, and financial system reforms are modernizing how businesses operate and transact. Overall, these policies are expected to support sustainable growth, economic diversification, and long-term business confidence in Nigeria.