4 Top Nigerian Tax Compliance Considerations for Boards in 2026
The Nigerian business environment is no longer what it was just twelve months ago. Driven by regulatory reforms, global best practices, and the pressing need for sustainable growth amid economic challenges, the framework for doing business has been rewritten.
With the Nigerian Tax Reform Acts now in full effect for 2026, the era of “reactive” compliance is over. For corporate boards and management teams, accountability and transparency are no longer a choice.
This guide provides a strategic roadmap for navigating the complexities of 2026 for corporate governance and tax compliance in Nigeria.
2025 Review: The Tax Reforms That Changed Everything
On June 26, 2025, President Bola Ahmed Tinubu signed four transformative Tax Reform Acts:
1. Nigeria Tax Act 2025.
2. Nigeria Tax Administration Act 2025.
3. Nigeria Revenue Service Act 2025.
4. Joint Revenue Board Act 2025.
Effective from 2026, these laws represent the most comprehensive overhaul of Nigeria’s fiscal framework since independence. They aim to unify financial management, diversify revenue sources, and modernise the institutional mandates of the newly reconstituted Nigeria Revenue Service (NRS).
Key Pillars of the New Tax Regime:
1. The 4% Development Levy: Medium and large businesses now pay a unified 4% tax on assessable profits, replacing various sector-specific levies like the IT Levy and Tertiary Education Tax.
2. Minimum Effective Tax Rate (15%): Large domestic firms and multinationals with global revenue exceeding €750 million (or ₦50 billion turnover) must now adhere to a 15% minimum tax floor.
3. Small Business Relief: In a boost for the SME sector, businesses with annual revenue below ₦100 million are now completely exempt from CIT, Capital Gains Tax, and the Development Levy.
4. Digital Transformation: Mandatory e-invoicing and real-time VAT reporting are now law, allowing the NRS to monitor compliance activities instantaneously.
5. Stricter Penalties: The cost of silence is high. Failure to submit returns now attracts a ₦100,000 fine for the first month and ₦50,000 for every subsequent month of default.
2026 Boardroom Priorities: From Tax Compliance to Corporate Governance
In 2026, tax is no longer just a “finance department problem”. It is a core pillar of corporate governance.
To thrive in this environment, directors and senior executives must elevate tax strategy to a core leadership responsibility.
We recommend focusing on these four pillars:
1. Conduct a Deep-Dive Impact Assessment
The shift from a 10% to a 30% Capital Gains Tax (CGT) and the introduction of taxes on indirect offshore share transfers will fundamentally alter shareholder value expectations. Boards must evaluate how these changes affect subsidiaries, contractual agreements, and long-term financial structures.
2. Redefine Tax as Governance
In 2026, your tax strategy is your credibility. As an organisation, establish a Tax Risk Register to track exposure and ensure that all financial operations align with ethical boundaries. In 2026, a transparent tax footprint is a signal of a well-governed company.
3. Invest in Digital Infrastructure
With e-invoicing now mandatory, “analogue” accounting is a liability. Boards must prioritise upgrading ERP systems to support automated filing. This isn’t just about compliance; it’s a safeguard against fraud and reputational damage.
4. Continuous Education and Adaptation
The rules have changed; has your leadership? Regular briefing sessions are essential to ensure that strategic plans remain aligned with the Nigeria Tax Administration Act 2025. Note: You need an expert to lead regular reviews of tax policy, compliance performance, and conduct internal training that will help your company remain proactive, adaptive and audit-ready.
Conclusion
The 2025 reforms have redefined the social contract between the Nigerian government and the private sector. In 2026, the successful organisations will be those that view compliance not as a burden, but as a commitment to national development and a tool for building investor trust.
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Navigate the future of Nigerian business with confidence. At Olisa Agbakoba Legal (OAL), we combine deep regulatory insight with strategic corporate governance solutions to ensure your business stays ahead of the curve. Whether you are adapting to the 2026 tax changes or strengthening your internal controls, we provide the clarity and leadership your board needs to thrive. Reach out to us today to learn how we can assist with your corporate governance and tax compliance needs.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.