Brace for risks under new tax Laws, experts tell financial institutions

By Ephraim Oseji

Financial experts person urged financial institutions to expect risks, place opportunities and lend to aboriginal argumentation refinement with the recently implemented Tax Reform Acts 2025.

The experts spoke astatine an lawsuit convened by TAC Tax Advisory Services, a starring indigenous steadfast of Chartered Accountants and Tax Advisers.

From Left: James Oni (Director, Taxation &Regulatory Advisory TAC Tax Advisory Services), Dr Olabode Olatunji( Director, Large Tax Payers, Telecom& Financial Services Department FIRS), Dr Olabode Oni (Executive Director FundQuest Financial Services Limited), Tunde Adaramaja (CEO TAC Professional Services), Mr John Briggs (Head,Lagos Zonal Office SEC), Dr Adebola Olubanjo ( Chairman Adebola Sobanjo & co), Mrs Temitope Adeosun ( Managing Director Apel Assets Limited), Mr Saheed Bashir ( Managing Director Meristem Stockbrockers Limited)and Mr Sola Oyetayo (Secretary Association of reporting accountants and auditors successful capital markets) Executives and Industry Leaders during TAC Professional’s Seminar connected the Impact of the New Tax Reforms 2025 connected the Capital Market held successful Lagos.

Speaking astatine the event, Managing Partner/CEO of TAC Professional Services, Mr. Tunde Adaramaja, said the reforms spell beyond being conscionable different argumentation shift.

He said: “This is simply a structural recalibration of Nigeria’s fiscal architecture, with afloat implementation acceptable wrong 3 months, institutions indispensable debar complacency. There volition beryllium nary hiding spot erstwhile these laws instrumentality effect. Our work goes beyond compliance- we indispensable expect risks, place opportunities, and lend to aboriginal argumentation refinement. In doing this, we indispensable besides clasp the Government accountable and transparent.”

Also speaking connected behalf of the Director General, Securities and Exchange Commission, SEC, Dr Emomotimi Agama,Head of SEC, Lagos, Mr John Briggs, said the caller taxation laws are much than conscionable legislation, saying, “it is simply a strategical lever. If good implemented and complemented by structural reforms, it could alteration the superior marketplace into an motor of inclusive growth. “The question present is not whether the instrumentality was passed, but whether it volition catalyze sustainable enlargement oregon go different well-intentioned betterment constrained by bottlenecks.”

Briggs highlighted caller information from the Nigerian Bureau of Statistics (NBS), noting that Foreign Direct Investment (FDI) roseate from $377.4 cardinal successful 2023 to $674.7 cardinal successful 2024, marking a 12 per cent summation successful Q3 alone, signalling a instrumentality of capitalist assurance successful semipermanent opportunities.

Meanwhile, the caller Tax Acts present a wide scope of measures aimed astatine modernizing Nigeria’s taxation strategy and enhancing compliance. These see integer processes that volition service arsenic a affirmative awesome to investors. The reforms clasp the existing model for IPO activities and streamline compliance processes. Notably, the caller laws heighten transparency and predictability for taxation attraction of communal funds and ETFs, perchance supporting the instauration of lower-cost concern products for first-time investors.

While the taxation betterment is expected to thrust important transformation, experts stressed that strengthening market-making infrastructure, improving probe coverage, and nationalist sensitization stay important for success.

The Tax Reform Act 2025 consolidates aggregate outdated taxation laws into a unified model designed to heighten compliance, broaden the taxation base, and digitize administration.

Key changes see the retention of the 30 per cent Corporate Income taxation (CIT) rate. Capital Gains Tax (CGT) thresholds person been raised: proceeds from stock disposals nether ¦ 150 cardinal annually are present exempt, up from ¦ 100 cardinal per the Finance Act, and gains not exceeding ¦ 10 cardinal successful immoderate consecutive 12-month play are besides exempt. Notably, determination is nary broad exemption for semipermanent holdings, which is designed to incentivize IPO participation. Withholding Tax (WHT) regulations person been harmonized to clarify qualif...