The CIT rates will be adjusted in a two-step process:
- For the 2025 tax year, the rate will be 27.5%.
- From 2026 onwards, the rate will be reduced to 25%.
- Scenario: A large manufacturing firm with a profit of ₦10 billion will pay ₦2.75 billion in tax for the 2025 financial year (an extra ₦250 million compared to the old 25% rate). However, from 2026, its tax bill will reduce to ₦2.5 billion, resulting in a permanent annual saving of ₦500 million.
