Nigeria Exempts SMEs from Tax on Revenue Up to 1 Billion Rupiah

The Nigerian government announced on 7 November 2025 that micro, small and medium enterprises (UMKM) with annual revenue up to NGN100 million (about Rp1.16 billion) will face a 0 % tax rate. Businesses are urged to register with the tax office to qualify for the benefits. Registration for 250 000 small firms will be provided free of charge.

Chairman of the Presidential Committee on Fiscal Policy, Taiwo Oyedele, said the measure aims to bring more UMKM into the formal economy and ensure they can sustain corporate taxes. He also highlighted the expectation of professional conduct from tax officials and advised reporting any harassment to the Tax Ombudsman.

The policy is expected to lower compliance costs for eligible UMKM and encourage formalisation. A value‑added tax (PPN) exemption for food, education, health and pharmaceuticals will start on 1 January 2026, benefiting the roughly 80 % of low‑income households that spend most of their earnings on these essentials.