The Finance Bill arrives every year. This year’s version includes changes that will be felt directly in people’s pockets — so let’s break it down.

The income tax changes

The minimum taxable income threshold rises, meaning lower earners keep more of what they make. For a worker earning ₦150,000 a month, the net effect is roughly ₦3,500 to ₦6,000 more take-home pay per month. Not transformative, but noticeable over a year.

The import levy

A new 2.5% levy on imported consumer electronics, clothing, and processed foods is designed to encourage domestic production. In the short term, it will make those goods more expensive.

Every policy has a cost. The question is who pays it, and whether what they receive in return is worth it.

Small business tax holiday

The extension of the tax holiday for small businesses from three years to five is the provision that has received the least attention and may matter the most. Qualifying businesses pay zero corporate tax for their first five years of operation in designated economic zones.