With the official implementation of the Nigeria Tax Act (NTA) 2025 this January, Lagos professionals are waking up to a new reality in their monthly payslips.
The biggest shift for those living in the Gbagada, Lekki, or Ikeja axis isn’t just the change from FIRS to the Nigeria Revenue Service (NRS), it’s how your take-home pay is now calculated.
Key Changes for Lagosians:
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Rent Relief vs. CRA: The old Consolidated Relief Allowance is gone. In its place, the government has introduced a Rent Relief system. You can now claim 20% of your annual rent (up to ₦500,000) as a tax deduction.
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The ₦800k Threshold: If you’re a junior professional or small business owner earning ₦800,000 or less annually, you are now 100% tax-exempt.
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The “Lagos Advantage”: With the new Joint Revenue Board Act, double taxation between the State (LIRS) and Federal (NRS) levels is expected to decrease, easing the burden on SME owners in the state.
Lagosians can check their new monthly take-home pay using this [2026 Tax Calculator]. It allows you to factor in your actual Lagos rent to see your real-world savings.
