“This is a structural recalibration of Nigeria’s financial architecture, with full implementation set within three months, institutions must avoid complacency. There will be no hiding place once these laws take effect.
Our responsibility goes beyond compliance- we must anticipate risks, identify opportunities, and contribute to future policy refinement. In doing so, we must also hold the Government accountable and transparent,” the experts said at an event organised by TAC Tax Advisory Services, a leading indigenous firm of chartered accountants and tax advisers.
Additionally, Mr. John Briggs, the head of the Securities and Exchange Commission (SEC) in Lagos, and Dr. Emomotimi Agama, the director general of the SEC, stated that the new tax rules are more than just legislation, calling them a strategic lever.
It has the potential to turn the capital market into a catalyst for inclusive growth if well executed and combined with structural reforms. Whether the law will spur sustained growth or turn into another well-meaning change hampered by obstacles is the real question at hand, not whether it was passed.
Briggs cited new data from the Nigerian Bureau of Statistics (NBS), pointing out that FDI increased by 12% in Q3 alone, from $377.4 million in 2023 to $674.7 million in 2024, indicating a resurgence of investor confidence in long-term prospects.
In the meantime, a number of measures are introduced by the new Tax Acts with the goal of improving compliance and modernising Nigeria’s tax system. Among these are computerised procedures that would provide investors a good indication.
The amendments simplify compliance procedures while maintaining the current framework for IPO operations. Notably, the new regulations improve predictability and transparency regarding the tax treatment of mutual funds and exchange-traded funds (ETFs), which may encourage the development of more affordable investment options for novice investors.
Even if the tax reform is anticipated to bring about a great deal of change, experts emphasised that public awareness campaigns, better research coverage, and a stronger market-making infrastructure are still essential for success.
In order to improve compliance, expand the revenue base, and digitise administration, the revenue Reform Act 2025 unifies several antiquated tax laws into a single framework.
One of the main adjustments is the continuation of the 30% Corporate Income Tax (CIT) rate. Capital Gains Tax (CGT) levels have been raised: gains under ¦ 10 million in each successive 12-month period are also excluded, and revenues from share disposals under ¦ 150 million yearly are also exempt, up from ¦ 100 million under the Finance Act.
It is noteworthy that long-term holdings, which are intended to encourage IPO participation, are not specifically exempt. Although rates for foreign investors have not changed, withholding tax (WHT) procedures have been standardised to make qualifying transactions more understandable and to simplify compliance. Future cuts would necessitate more legislative action.
Performance-based incentives have taken the place of outdated tax breaks. Businesses that make eligible capital expenditures can receive a five-year, 5% tax credit that can be extended through reinvestment, promoting long-term growth rather than short-term tax benefits.
A New Digital Era for Tax Administration
The Nigerian tax authority’s operational reach will be increased by the switch from FIRS to the Nigerian Revenue Service (NRS), which will use digital technologies like automated assessments and real-time reporting portals.
Support for Small Businesses and Individuals
Small enterprises also benefit from the improvements. Up from ¦ 25 million, companies having a turnover of up to ¦ 50 million are now exempt from some taxes.
An important step towards formalising the informal economy is the complete exemption from personal income tax for those making ¦ 800,000 or less per year.
Additionally, investors are better protected during times of market volatility when they can offset capital losses against capital gains. The new tax law establishes an effective tax rate threshold of 15% on net earnings for multinational corporations (MNEs) and their foreign subsidiaries. To make things simpler, a 4% Development Levy has also been combined.
Challenges and Opportunities in Building a Resilient Capital Market
“We used to navigate dozens of overlapping statutes,” stated Dr. Olabode Olatunji, Director, Telecom & Financial Services Department, FIRS, Large Taxpayers. We now have a single, more concise document.
He underlined that the technology integration between SEC and FIRS for real-time transaction tracking is a major advancement. Olatunji also addressed worries about stamp taxes on capital market transactions and emphasised the significance of expanding the fiscalization plan to other industries, such as the capital market.
Despite their optimism, experts cautioned about possible difficulties in coordinating market participant technology with tax authority infrastructure, especially in the capital market.
Meristem Stockbrokers Limited’s MD, Mr. Saheed Bashir, expressed concerns regarding the potential effects on liquidity and transaction frequency of the CGT rise from 10% to 30% for retail investors. He did concede, though, that more ordinary investors would probably participate in the market in the long run, particularly if the profits were reinvested in Nigerian companies.
Panel: Unpacking Tax Reform’s Impact on Capital Market Expansion
Mr. Bisi Oni chaired an interactive panel discussion at the end of the seminar that included industry professionals Mr. John Briggs, Mr. Saheed Bashir, Mrs. Temitope Adeosun, and Mr. James Oni. The panel talked on the tax reforms’ wider effects, especially on company governance and capital market participation. “It’s about coherence,” Briggs reminded the crowd. Stable monetary policy, reliable regulation, and rule-of-law governance must all coexist with tax reforms. “The market’s revaluation must be evaluated in terms of its impact on retail investors—how they are informed and how they ultimately benefit from the market,” Mrs. Temitope Adeosun continued. Corporate governance is still essential.
Although stakeholders have great hopes for the effects of tax reforms, Mr. James Oni underlined that there is no turning back because the reforms have already been signed into law and are set to take effect on January 1st, 2026. Therefore, before this deadline, businesses and individuals must start proactively aligning their books and records.
Overall, it is impossible to overstate the need of regular and ongoing education for all parties involved in the capital market, including corporate and retail investors.
“We are not just interpreting the law today; we are shaping the future of finance in Nigeria,” Mr. Adaramaja said in closing. Now is the moment for proactive, wise involvement.
Nigeria’s capital market is about to undergo a change. The government is putting itself in a position to draw in foreign investment with the implementation of the 2025 tax reforms, but cooperation between tax authorities, market players, and regulatory agencies will be necessary for success.
