Nigeria: Tax reform and the power sector
Tax reform bills scheduled to come into effect on January 1, 2026
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