On Thursday, June 26, 2025, Nigerian President Bola Tinubu signed four new tax bills into law. The Head of State plans to ratify a reform that has been long overdue in order to improve the revenues of the country, which has been experiencing its worst economic crisis in a generation

Nigeria has a tax-to-GDP ratio of 13.5%, lower than the African average of 16%. This means that a large part of the Nigerian workforce does not pay taxes. According to the government, this reform, which will come into force definitively as of 1 January 2026, will make it possible to “harmonize” withholding taxes at the national level. Before the signing, the president said on social media that “for too long, our tax system has been a complex, inequitable and burdensome patchwork.” It promises relief for poor and working class Nigerians. The president's previous reforms, which cut expensive fuel subsidies and liberalized the naira exchange rate, were welcomed by economists, who said the measures were long

The government hopes that these reforms will reduce the cost of doing business for domestic and foreign companies operating in this economic powerhouse in West Africa, whose economy has grown from first to fourth place in Africa under Tinubu's reforms