Tax 2026: Who Dey Chill, Who Dey Sweat? —Your Naija Guide to the New Rules

If you dey hustle for Naija, you don hear the gist: the new tax law go start January 2026. Everybody dey talk about am, but the real question be: who go pay, and who fit siddon dey chill? Make I yan you the koko in a way wey go make sense for everybody, from your oga for office to that uncle wey dey sell akara by the road.

Who Go Dey Chill? (Tax-Free Lane)

First things first: if your pocket nor too deep, you fit breathe small. The government don make am clear: anybody wey dey earn below N800,000 per year no go dey pay personal income tax (PIT). That one mean say if you dey collect small monthly salary, or dey do small side hustle wey no reach that threshold, you fit siddon dey relax. Na win for those wey dey struggle small-small.

For example, think about your girl wey dey do data entry from home, or that Uber driver wey dey hustle for Lagos traffic every day. If their yearly earnings no pass N800k, them no dey owe anything for government pocket. Cool, right? No wahala, no waka to the tax office.

Small businesses wey never blow reach N100 million turnover nor get more than N250 million fixed assets also dey safe from company income tax. That one mean say those startup guys wey dey try survive, the Naija government wan encourage una to dey grow without wahala. Even small VAT exemptions dey for essential goods like food, school books, and shared transport. So next time you buy akara or travel for okada, tax palaver no go too worry you.

Even agriculture startups dey get am sweet: first five years no income tax, if na agric business you dey run. Na move to make more food and jobs dey come. And anybody wey dey export goods, your profit go dey tax-free as long as money enter Naija legally. Government dey try encourage production and small hustle to dey flourish.

Who Dey Sweat? (Tax Lane)

Now, make we yan the other side—those wey go dey feel the tax waka. If you dey earn pass N800,000 yearly, or your company don blow pass the thresholds, you go dey taxed. Also, digital and virtual profits go dey taxed. So if you dey sell things online, or dey collect crypto gains, government don put eye for una.

Companies go face development levy of 4% for assessable profits—unless your business small-small. Capital gains tax don increase for companies from 10% to 30%. For individuals, CGT dey progressive, mean say as your income increase, your tax fit increase too. The new law dey make sure say everybody contribute according to wetin dem fit.

But make you no vex: the aim no be to stress anybody, na to expand the tax base and give small-small relief for low-income earners. Government don make sure say ordinary people dey get buffer, but if you dey fly big, dey sell big, or dey earn serious cash, you go need put hand for pocket.

The law don also consolidate multiple tax rules like Companies Income Tax Act, Personal Income Tax Act, VAT, Capital Gains Tax into one clean framework. Na way to remove wahala wey dey confuse people and small-small corruption wey dey happen before. Everything dey clear now, from procedure to compliance. Even Office of Tax Ombudsman dey now, so if wahala jam you, person fit go complain.

Real-Life Examples Wey Go Make You Understand

Make I break am down for you:

• Chukwuemeka, the Uber driver: him dey earn around N700,000 per year. Him go chill, no tax wahala.
• Tolu, the tech startup guy: him start small but now get N50 million turnover. Him still dey safe till e reach N100 million.
• Auntie Nkechi, selling akara: her daily hustle dey small, total income under N800k per year—no tax. Sidon dey enjoy.
• Big company oga, Mr. Bello: turnover dey N500 million, fixed assets N300 million—him go need pay taxes and development levy.

See as e clear: na small-small, everybody dey find their lane. The law no dey carry everybody go one corner. Na balance government dey try do: encourage small hustlers, protect low earners, and make sure big players contribute for country growth.

Takeaways for 2026

1. Check your income: If you earn under N800k/year, enjoy life, no wahala.
2. Small businesses dey safe: Turnover under N100 million? You fit grow freely.
3. Big players go pay: Anything above threshold, or digital gains, go dey taxed.
4. Agric startups dey incentivized: 5 years tax-free to encourage production.
5. Everyone must dey compliant: NRS dey control all federally chargeable taxes now.

So, whether you dey chill lane or sweat lane, make you sabi your tax position from now. January 2026 dey come fast, and e better make you ready. Na opportunity too for Naija to encourage production, support small hustlers, and make the system fair.

Remember, tax no be enemy if you know your lane. E fit be that push wey make Naija dey move forward as every small-small contribution dey count.