Nigeria’s new tax regime, specifically Section 14 of the Nigeria Tax Act 2025, has introduced tighter scrutiny on employee perks, potentially increasing taxable income for workers. Under the new rules, employer-provided assets like company cars and housing are now subject to taxation based on their market value or rental cost. For employer-owned cars used for personal purposes, the taxable benefit is assessed at 5 percent of the acquisition cost. In contrast, for leased vehicles, the full annual lease amount is treated as a taxable benefit. While official vehicles used exclusively for work and certain provisions like canteen meals are exempt, employers must now maintain rigorous records and adjust their compensation structures to account for these tax implications when calculating PAYE obligations.