Nigeria: Tax reform and the power sector

Tax reform bills scheduled to come into effect on January 1, 2026

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July 15, 2025

Tax reform bills—scheduled to come into effect on January 1, 2026—may impact businesses in the power sector, with key changes concerning:

  • Value added tax (VAT) system
  • Priority sector program
  • VAT on renewable energy equipment
  • Minimum tax
  • 5% surcharge on chargeable fossil fuel products
  • Transfer of regulatory authority from federal government to state

Read a July 2025 report prepared by the KPMG member firm in Nigeria

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