Fiscal & Tax · Partly superseded

Finance Act 2019

The first of Buhari’s annual Finance Acts — raised VAT to 7.5% and delivered the biggest tax overhaul in two decades.

Signed
2020-01-13
Assented by
Status
Partly superseded
01 Background

The Finance Act 2019 introduced the practice of annual finance acts alongside the budget. It raised VAT from 5% to 7.5%, exempted small companies (turnover under ₦25m) from companies income tax, introduced a digital/e-commerce tax nexus and required a TIN to open or operate bank accounts. It was subsequently amended by the Finance Acts 2020, 2021 and 2023.

02 Key provisions · 4
§ 01
VAT 5% → 7.5%
§ 02
CIT exemption for small companies (<₦25m turnover)
§ 03
Digital/e-commerce tax nexus
§ 04
TIN required for bank accounts
03 What changed in practice
Launched the annual Finance Act cycle
Raised VAT and broadened the tax net
04 Who it affects
CompaniesSMEsConsumersFIRS
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