Glytabs June/July 2025 Newsletter
Relief for Small Businesses: New Tax Reforms Usher in A Fairer Era
In a landmark move, President Bola Ahmed Tinubu has officially signed the long-awaited Tax Reform Bills into law, marking a major step toward simplifying Nigeria’s tax system and easing the burden on individuals and businesses, especially small and medium-sized enterprises (SMEs). This sweeping reform introduces four key laws that merge, modernize, and streamline tax policies: the Nigerian Tax Bill, the Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
One of the most significant wins for SMEs in this move is the exemption of businesses earning below ₦50 million annually from company income tax. This means thousands of micro and small enterprises, often the heartbeat of Nigeria’s economy, can now operate with less financial pressure and greater confidence. The reform also introduces a more transparent VAT sharing formula that incentivizes states to support local businesses and grow their internal economies. With clearer rules, digital tax systems, and new accountability mechanisms like the Tax Ombudsman and Appeal Tribunal, the reforms promise a more predictable and business-friendly environment.
Glytabs Consulting Limited (GCL) celebrates this reform as a strategic breakthrough for SMEs, many of whom struggle under unclear tax demands and multiple levies. As a company working closely with small businesses across the food, nutrition, and agribusiness value chain, we know firsthand how taxing policies can hinder growth and discourage formalization.
We congratulate the government for this new framework, which aligns with the kind of ecosystem we have long advocated for: one that rewards compliance, supports early-stage growth, and fosters trust between government and entrepreneurs. GCL, therefore, remains committed to helping SMEs navigate this new landscape through:
- Business advisory services: Helping enterprises align their operations for sustainability, regulatory compliance, and access to finance.
- Policy translation and sector analysis: Breaking down new policies for MSMEs in food, agriculture, and nutrition to ensure they can take full advantage.
As Nigeria retools its tax system to work for the people, not against them, we see a real opportunity for more SMEs to grow without fear, and GCL is poised to help make that happen.
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