How Nigeria’s New Tax Laws Will Affect You if You Don’t
If you run a business in Nigeria and have not yet registered it with the Corporate Affairs Commission (CAC), the next few months are critical.
The new Tax Laws coming into effect on January 1, 2026, will fundamentally change how small businesses are taxed. These reforms are designed to encourage business formalization — rewarding registered companies with tax reliefs while leaving unregistered businesses exposed to higher taxes and financial restrictions.
What Has Changed in the New Tax Laws
Before now, the law recognized small companies with turnover below ₦25 million and granted them exemption from Company Income Tax (CIT).
Under the new tax framework, this threshold has been increased to ₦100 million — but only for formally registered companies.
Here’s what that means in plain terms:
Registered Limited Liability Companies (LLCs) with turnover under ₦100 million will enjoy:
- 0% Company Income Tax (CIT)
- 0% Value Added Tax (VAT)
- 0% Withholding Tax (WHT)
Unregistered businesses, on the other hand, will:
- Continue to pay Personal Income Tax, which can go up to 24%
- Miss out on these exemptions
- Face limitations opening business bank accounts
- Lose access to contracts, supplier relationships, and government programs that now require a CAC certificate and TIN
Why the Government Made This Change
The government’s goal is simple — to encourage formalization.
By rewarding registered companies with tax breaks and access to finance, the government is pushing small business owners to take their operations seriously and build sustainable, tax-compliant enterprises.
But this also means that remaining informal — running your business without registration — is becoming riskier and more expensive.
What Happens if You Don’t Register Before 2026
If you’re still running an unregistered business by January 2026, you’ll face several challenges:
- Your income may be taxed under the Personal Income Tax regime at much higher rates.
- Vendors and suppliers may refuse to transact with you without a valid Tax Identification Number (TIN).
- You may be locked out of bank funding, grants, and government tenders that require CAC documentation.
And as the year-end rush begins, CAC offices will be flooded with thousands of last-minute applications, leading to long delays and potential cost increases.
The Smart Move — Register Now
Registering a company gives you:
Tax protection and compliance under the new laws.
Credibility with clients, investors, and partners.
Legal protection, separating your personal finances from your business.
Access to loans, contracts, and corporate partnerships.
The sooner you register, the faster you position your business to take full advantage of the 2026 reforms.
TBD & GC Limited — Your CAC Registration Partner
At TBD & GC Limited, part of the Tersur Group, we’ve spent over 10 years helping Nigerian entrepreneurs register, structure, and grow their businesses.
Our experienced team handles everything from name search to final certificate delivery — giving you a seamless registration process and saving you time and stress.
Our Company Registration Packages
We’ve made registration simple and affordable for entrepreneurs
:
Basic Company Registration – ₦60,000
- Registration of a company with ₦1 million share capital
- CAC Certificate of Incorporation
- Status Report & Memorandum/Articles of Association
Comprehensive Company Registration – ₦110,000
- Everything in the Basic Plan plus:
- Common Seal
- EFCC SCUML Certificate
- Tax Identification Number (TIN)
Requirements for Company Registration
To get started, you’ll need:
Two proposed company names
Full name, phone number, and address of each director/shareholder
Valid means of identification and passport photos
Registered business address
Company objectives or line of business
Processing time: 5–7 working days after submission and payment.
Don’t Wait — Avoid the December Rush
By December 2025, CAC offices will be overloaded with last-minute registrations. Many business owners will face delays and higher costs.
Registering your company now guarantees that you’re compliant, credible, and ready to take advantage of the ₦100 million tax-free turnover benefit from January 2026.
Office Address:
Suite 103, Nwukpabi Plaza, No. 14 Ibrahim Waziri Crescent, Gudu District, Abuja
Call or WhatsApp: +234 802 951 5932
Our consultants are ready to walk you through the process and answer every question.
Start your registration today — secure your tax advantage and your business future.