The Federal Ministry of Industry, Trade and Investment has assured the organised private sector that ongoing fiscal reforms are designed to strengthen competitiveness and create an enabling environment for businesses to thrive, rather than impose additional burdens.
Speaking at a virtual stakeholders’ dialogue on Nigeria’s new fiscal and regulatory framework, Minister of Industry, Trade and Investment, Jumoke Oduwole, emphasised that the ongoing reforms aligned with President Bola Tinubu’s “Nigeria First” policy and domestic investor focus.
“Under the leadership and bold reforms introduced by the President, Nigeria has entered a new era of fiscal discipline, regulatory clarity and economic modernisation,” Oduwole said, stressing the government’s commitment to creating a predictable and simplified landscape for both local and foreign investment.
The dialogue, which featured representatives from key agencies including the Nigerian Export Processing Zones Authority, Federal Inland Revenue Service and the Presidential Committee on Fiscal Policy and Tax Reforms, focused on raising awareness about new policies, facilitating stakeholder engagement while ensuring smooth transition ahead of the January 1, 2026, implementation date.
Chairman of the Presidential Committee on Tax Reforms, Taiwo Oyedele, unveiled significant incentives embedded in the new tax legislation, describing them as transformative changes that should excite the business community.
Corporate income tax will drop from 30 per cent to 25 per cent once the President signs an executive order based on National Economic Council advice, while businesses will enjoy full value-added tax input credits on capital expenditure, overhead and services from January – a benefit worth approximately N3.4 trillion, more than double the CIT reduction value.
The reforms also introduce a N100 million turnover threshold below which small businesses are exempted from paying taxes, a move already spurring increased registration with the Corporate Affairs Commission.
Oyedele addressed concerns about the reforms, urging stakeholders to adopt a holistic perspective rather than focusing on individual provisions. “These reforms constitute the most far-reaching transformation of Nigeria’s fiscal framework since our independence,” he said.
On the contentious issue of Special Economic Zones, Oyedele clarified that operators selling to the domestic market must pay taxes to create a level playing field for local businesses.
“Free zone operators can sell up to 25 per cent to the domestic market without paying corporate income tax until January 1, 2028, after which they will be taxed on sales to the local market.”
He challenged the notion that free zones should compete tax-free with domestic businesses, noting that no country permits such arrangements. “We haven’t found any country where you set up a free trade zone, or you call it a special economic zone, you give them all tax incentives, and you ask them to compete with your domestic businesses,” he said.
MD of NEPZA, Olufemi Ogunyemi, while acknowledging the reforms, appealed for a sunset period of about 10 years for zone operators to adjust to the new fiscal regime.
Addressing concerns about capital gains tax on shares, Oyedele explained that the reforms exempt over 99 per cent of capital market investors. Sales below N150 million annually with capital gains not exceeding N10 million are completely exempted, while pension funds, mutual funds, and real estate investment trusts also enjoy exemptions.
Executive Chairman of FIRS, Zacch Adedeji, reaffirmed the administration’s commitment to supporting private sector growth. “The vision of the President is actually to support the private sector. He’s not ready to tax the seed for the fruit. He’s not ready to tax the investment for the return,” Adedeji said.
