And how Sproutly is helping everyone stay ahead.

Last term, Mrs. Stanley, a school owner in Surulere, sat at her desk staring at yet another rising cost: textbooks were up, teacher training was overdue, and parents were struggling to keep up with fees.
She sighed, wondering how her small school was supposed to survive another academic year with the financial pressure tightening from every direction.

Then January 2025 arrived.

Suddenly, every school owner, every teacher, and every parent began hearing whispers about Nigeria’s new tax reforms. Some called it confusing. Others called it hopeful. Most were simply trying to figure out what it meant for them.

If you’re in that same boat — wondering How does this affect my school? My fees? My classroom? — you’re exactly who this guide was written for.

Sproutly is here to break it all down, simply and clearly, and show you how to actually benefit from these changes.

Nigeria didn’t just adjust its tax laws — it redesigned the entire structure.

Four new acts now define how taxes are collected, documented, and used, and for the first time, the education sector is at the center of the conversation.

Education Funding Gets a Real Structure

For years, school funding in Nigeria suffered from scattered levies and inconsistent revenue channels.

The new system replaces all the old education-related levies with one transparent 4% Development Levy.

Half of this new fund goes directly to education — the highest guaranteed allocation we’ve seen in decades. The rest supports student loans, technology, innovation, research, and national security.

This means education now has a predictable, trackable slice of Nigeria’s revenue.

That’s a big deal for infrastructure, teacher development, and long-term planning.

DID YOU KNOW?

Sproutly helps schools build the transparent record keeping systems needed to benefit from this new era of structured funding. just visit sproutly.africa

Learning Just Got Cheaper

Another major win:

Educational essentials like textbooks, materials, equipment, and even tuition are now VAT-exempt.

Parents spend less.
Schools save more.

Everyone breathes easier.

And when schools invest in digital tools, they can finally reclaim VAT on many of those purchases.

DID YOU KNOW?

Sproutly supports this shift through our Cowri Program flexible payment subscriptions, allowing parents to break school fees into simple, predictable payments that match today’s financial realities.

Digital Records Are Now Mandatory

The Nigeria Tax Administration Act (NTAA) now requires schools to digitize all financial activity.

Everything — transactions, receipts, invoices, and reports — must be stored electronically and updated in real time.

It’s a bold transition. Necessary, but overwhelming for many institutions.

Sproutly Books bridges this gap, offering schools:

Digital invoicing
Real-time payment tracking
Clean, transparent records
Audit-ready financial summaries

But don't worry, because with us, compliance isn’t a struggle. It’s automatic.

Smaller Schools Get Breathing Space

Community schools and low-fee institutions with modest income are now exempt from:

Company income tax
The new development levy
Withholding tax

This gives them room to grow, improve their facilities, and invest in teacher welfare without suffocating financially.

Incentives for Growth & Innovation

Schools can now deduct part of their income for research, invest in technology, and even access tax benefits for hiring more staff or raising salaries.

These reforms are sending a message:

If you grow your school, if you strengthen your teachers, if you innovate — we’ll support you.

How Sproutly Helps You Make the Most of This New Era

Nigeria is entering a tax landscape built on transparency, digital systems, and flexible finance. Sproutly is the bridge that helps schools, teachers, and parents cross into this new future confidently.