Nigeria's Tax-to-GDP Ratio Climbs to 13.5%, Says Tinubu

Table of Contents

• Nigeria's Tax-to-GDP Ratio
• Independence Anniversary Broadcast
• Details of the New Tax Law
• Exemptions for Low-Income Earners
• Comments from FIRS Chairman

President Bola Ahmed Tinubu announced that Nigeria’s tax-to-gross domestic product ratio has increased to 13.5 percent as of September 2025, up from below 10 percent.

This information was shared during Nigeria’s 65th Independence anniversary broadcast on Wednesday.

President Tinubu emphasized that the federal government’s tax law, set to take effect in January 2026, is designed not to increase the burden on current taxpayers.

“Our tax-to-GDP ratio has risen to 13.5 percent from less than 10 percent. The ratio is anticipated to grow further with the implementation of the new tax law in January. This legislation is not intended to increase the burden on existing taxpayers but rather to broaden the tax base to create the Nigeria we aspire to and to provide tax relief for low-income earners.”

It is worth noting that in June 2025, Tinubu signed four key bills into law, including the Nigeria Tax Bill (Fair Taxation), the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

Meanwhile, the federal government has assured that low-income earners will be exempt from the new tax regulations; however, there are concerns regarding the actual implementation starting in January 2026.

In a recent interview, the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, stated that one of the significant benefits of the new tax law for Nigerians is that essential services such as food, education, shared transportation, and agriculture will be exempt from Value Added Tax.