Formalise Your Business to Access Tax Reliefs, Oyedele Urges Nigerian Entrepreneurs

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has called on Nigerian entrepreneurs to formalise their businesses in order to benefit from the Federal Government’s new people-centred tax reforms.Speaking at the 24th Annual Conference of Women in Management, Business and Public Service (WIMBIZ) during a panel session titled “The New Tax Law and You”, Oyedele explained that the recent reforms were designed to support small businesses and low-income earners rather than burden them.According to him, President Bola Tinubu’s administration signed four tax reform acts into law in June. Two are already in effect, while the remaining two will take effect on January 1, 2026.Oyedele noted that the reforms aim to “reward compliance” by ensuring that businesses are allowed to grow before they are taxed.> “We started the tax and fiscal reform by looking at how people do business and how those businesses grow,” he said. “You can’t walk up to someone’s door and demand taxes without understanding their ability to pay. The reforms are therefore designed to be people-centric.”He highlighted a major incentive for small businesses:Companies with an annual turnover of ₦100 million or less will pay zero per cent corporate income tax.To further encourage formalisation, he added that the Corporate Affairs Commission (CAC) has pledged to register 250,000 small companies free of charge.—VAT Reliefs Coming for Essential Goods and ServicesOyedele also announced significant changes to Value Added Tax (VAT) administration aimed at protecting vulnerable households. He revealed that from January 1 next year, essential goods and services will either be exempted from VAT or zero-rated.Using bottled water as an example, he explained that while producers currently pay VAT on inputs such as packaging, printing, and logistics, the finished product will attract zero VAT under the new policy.