In a major policy shift announced at the 24th WIMBIZ conference, Nigeria’s fiscal reform team unveiled targeted tax relief designed to ease the burden on women-led small businesses and the informal sector — a move intended to boost formalisation, profitability and inclusive growth from January 1, 2026.
What’s changing and why it matters
At the WIMBIZ conference in Lagos on November 6–7, 2025, Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, introduced a new tax framework focused on women in business. The plan offers exemptions and incentives for small firms and low-income earners, alongside simplified, harmonised tax rules for larger companies — all aimed at removing the long-standing hurdles that hold back women entrepreneurs.
The key points in a snapshot
- Launch event: 24th WIMBIZ conference, Eko Hotels & Suites, Lagos — November 6–7, 2025.
- Effective date: January 1, 2026.
- Who benefits: Women-led SMEs, informal-sector traders, and low-income employees.
- Main incentives: Exemptions from Corporate Income Tax, VAT, Withholding Tax and PAYE for small businesses and qualifying workers; harmonised tax treatment and expanded input VAT credits for larger companies; and other relief measures to lower production costs.
- Ease of entry: The Corporate Affairs Commission will register 250,000 small businesses for free to encourage formalisation.
- Why this matters: Women-led enterprises drive over 40% of Nigeria’s GDP, but face multiple taxation and bureaucratic roadblocks that limit growth and compliance.
How the reform works
Taiwo Oyedele described the reforms as “people-centric,” saying the goal is to help businesses grow before they’re taxed. “You can’t knock on the door and say, ‘Tax me.’ Let’s have a conversation on how to create a business that can pay corporate tax,” he said — underscoring a philosophy of nurturing compliance rather than enforcing it too early.
He also set a clear threshold: any business with an annual turnover of ₦100 million or less will enjoy a 0% corporate tax rate.
Why women and small businesses are front and centre
Women dominate Nigeria’s SME landscape and are heavily represented in the informal economy. Yet many avoid formal registration due to complex taxes and overlapping regulations. The new framework seeks to:
- Encourage informal businesses to register and gain access to finance and support programs.
- Boost profitability and reinvestment among women-led enterprises.
- Build tax compliance capacity gradually — enabling businesses to thrive before contributing revenue.
Looking closer at the details
1. Free registration could jumpstart formalisation
Registering 250,000 firms at no cost is a bold start, but execution will decide its success. Fast, digital registration and simple compliance tools are key. If done right, it could expand Nigeria’s tax base, open access to credit, and help women entrepreneurs formalise faster — turning short-term incentives into long-term growth.
2. Balancing relief with fiscal realities
Waiving corporate tax for firms earning under ₦100m offers relief but reduces near-term revenue. The payoff depends on careful targeting, clear timelines, and transparent review points. Without strong oversight, weak implementation could waste the opportunity or introduce new inefficiencies.
What it means for women entrepreneurs
For women running small or medium-sized businesses, the impact could be significant:
- Lower operating costs thanks to VAT and income tax relief.
- Easier access to formal loans and grants through Corporate Affairs Commission registration.
- Less red tape — fewer visits to multiple tax offices and clearer, unified compliance steps.
Still, formalisation brings reporting responsibilities. To make the most of these benefits, SMEs will need clear guides, affordable bookkeeping tools, and small-business advisory support.
Next steps for policymakers
- Make it simple: Publish clear, translated guides on eligibility and registration to help first-time business owners.
- Go digital: Streamline registration and filing via mobile and web channels to increase participation.
- Provide support: Offer training, micro-grants and low-cost accounting software to help SMEs stay compliant.
- Track outcomes: Set review dates and sunset clauses to evaluate results and adjust incentives as needed.
The bigger picture
Nigeria’s WIMBIZ announcement marks a notable shift — using tax reform as a tool for inclusive growth. Success will depend on follow-through: clear rules, accessible tools and sustained stakeholder support. Done right, these measures could redefine how fiscal policy empowers — rather than penalises — the country’s women entrepreneurs.
Question: If you run a small business, what’s the single biggest barrier the government should fix — registration, taxation, financing, or something else? Share your thoughts below.
