By Ephraim Oseji
Financial experts have urged financial institutions to anticipate risks, identify opportunities and contribute to future policy refinement with the newly implemented Tax Reform Acts 2025.
The experts spoke at an event convened by TAC Tax Advisory Services, a leading indigenous firm of Chartered Accountants and Tax Advisers.
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 in capital
markets) Executives and Industry Leaders during TAC Professional’s Seminar on the
Impact of the New Tax Reforms 2025 on the Capital Market held in Lagos.
Speaking at the event, Managing Partner/CEO of TAC Professional Services, Mr. Tunde Adaramaja, said the reforms go beyond being just another policy shift.
He said: “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 this, we must also hold the Government accountable and transparent.”
Also speaking on behalf of the Director General, Securities and Exchange Commission, SEC, Dr Emomotimi Agama,Head of SEC, Lagos, Mr John Briggs, said the new tax laws are more than just legislation, saying, “it is a strategic lever. If well implemented and complemented by structural reforms, it could transform the capital market into an engine of inclusive growth. “The question now is not whether the law was passed, but whether it will catalyze sustainable expansion or become another well-intentioned reform constrained by bottlenecks.”
Briggs highlighted recent data from the Nigerian Bureau of Statistics (NBS), noting that Foreign Direct Investment (FDI) rose from $377.4 million in 2023 to $674.7 million in 2024, marking a 12 per cent increase in Q3 alone, signalling a return of investor confidence in long-term opportunities.
Meanwhile, the new Tax Acts introduce a wide range of measures aimed at modernizing Nigeria’s tax system and enhancing compliance. These include digital processes that will serve as a positive signal to investors. The reforms retain the existing framework for IPO activities and streamline compliance processes. Notably, the new laws enhance transparency and predictability for tax treatment of mutual funds and ETFs, potentially supporting the creation of lower-cost investment products for first-time investors.
While the tax reform is expected to drive significant transformation, experts stressed that strengthening market-making infrastructure, improving research coverage, and public sensitization remain crucial for success.
The Tax Reform Act 2025 consolidates multiple outdated tax laws into a unified framework designed to enhance compliance, broaden the tax base, and digitize administration.
Key changes include the retention of the 30 per cent Corporate Income tax (CIT) rate. Capital Gains Tax (CGT) thresholds have been raised: proceeds from share disposals under ¦ 150 million annually are now exempt, up from ¦ 100 million per the Finance Act, and gains not exceeding ¦ 10 million in any consecutive 12-month period are also exempt. Notably, there is no blanket exemption for long-term holdings, which is designed to incentivize IPO participation. Withholding Tax (WHT) regulations have been harmonized to clarify qualifying transactions and streamline compliance, though rates for foreign investors remain unchanged. Any future reduction would require separate legislative action.
Outdated tax holidays have been replaced with performance-based incentives. Companies investing in qualifying capital expenditures can claim a 5% tax credit over five years, extendable through reinvestment- encouraging sustainable growth over temporary tax breaks.
A New Digital Era for Tax Administration
The transition from FIRS to the Nigerian Revenue Service (NRS) will expand the operational reach of Nigeria’s tax authority, deploying digital tools such as real-time reporting portals and automated assessments.
Support for Small Businesses and Individuals
The reforms also bring relief for small businesses. Companies with turnover up to ¦ 50 million are now exempt from certain taxes, up from ¦ 25 million. Individuals earning ¦ 800,000 or less annually are fully exempt from personal income tax, marking a significant step towards formalizing the informal economy. Additionally, the ability to offset capital losses against capital gains provides investors with greater protection during volatile market periods. For foreign subsidiaries and multinational enterprises (MNEs), the new tax law introduces an effective tax rate threshold of 15% on net profits. A 4% Development Levy has also been consolidated to simplify the tax landscape.
Building a Resilient Capital Market: Challenges and Opportunities
Director, Large Taxpayers, Telecom & Financial Services Department, FIRS, Dr. Olabode Olatunji, said: “We used to navigate dozens of overlapping statutes. Now we have one coherent, slimmer document.” He emphasized that the integration of technology between FIRS and SEC for real-time tracking of transactions is a significant step forward. Olatunji also highlighted the importance of extending the fiscalization scheme to other sectors, including the capital market, and addressed concerns over stamp duties on capital market transactions.
While optimistic, experts warned of potential challenges in aligning tax authority infrastructure with market participant technology, particularly in the capital market. Mr. Saheed Bashir, MD of Meristem Stockbrokers Limited, shared concerns about the impact of the CGT increase from 10% to 30% for retail investors, which may initially affect liquidity and transaction frequency. However, he acknowledged that the long-term effect would likely see greater market participation from retail investors, especially if the gains are reinvested into Nigerian entities.
Panel Discussion: Tax Reform’s Role in Capital Market Growth
The seminar concluded with an interactive panel session, featuring industry experts such as Mr. John Briggs, Mr. Saheed Bashir, Mrs. Temitope Adeosun, and Mr. James Oni, moderated by Mr. Bisi Oni. The panel discussed the broader impact of the tax reforms, particularly on capital market participation and corporate governance. Briggs reminded the audience: “It’s about coherence. Tax reforms must be matched by stable monetary policy, predictable regulation, and rule-of-law governance”. Mrs. Temitope Adeosun added: “The revaluation of the market must be assessed in terms of its impact on retail investors- how they are informed and how they ultimately benefit from the market. Corporate governance also remains critical”. Mr. James Oni emphasized: “While stakeholders hold high expectations about the impact of tax reforms, there is no going back, as the reforms have already been signed into law with an implementation date of January 1st, 2026. Companies and individuals must therefore begin to proactively align their books and records ahead of this date.”
Overall, continuous and consistent education of stakeholders in the capital market, both for retail and corporate investors, cannot be over-emphasized.
As Mr. Adaramaja concluded, “We are not just interpreting the law today; we are shaping the future of finance in Nigeria. The time for proactive, intelligent engagement is now.”
Nigeria is on the brink of a capital market transformation. With the 2025 tax reforms in place, the country is positioning itself to attract global capital, but the road to success will require alignment between tax authorities, market participants, and regulatory bodies.
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