Nigeria’s New Tax Regime: What You Need to Know (Finance Act 2025)
At Akinyele Oluwale & Co., we are committed to keeping our clients informed about the latest regulatory changes affecting businesses and individuals in Nigeria.
The Finance Act 2025 represents one of the most significant tax reforms in Nigeria in recent years. Signed into law to simplify the tax system, reduce multiple taxation, and improve ease of doing business, the Act introduces several key changes:
Major Highlights:
Company Income Tax (CIT) reduced to 25% for large companies (from 30%).
Tertiary Education Tax significantly reduced from 2% to 0.5%.
- Strengthened rules against multiple taxation across federal, state, and local governments.
- Expanded scope of Value Added Tax (VAT) on digital services and luxury goods.
- Higher exemption thresholds for Capital Gains Tax and Personal Income Tax.
- Mandatory digital compliance through the new Rev360 platform.
New Tax Portal – Rev360
The Federal Inland Revenue Service (FIRS) has launched Rev360 (www.rev360.gov.ng), a unified digital platform for all federal tax filings and payments. This new system makes tax compliance easier, faster, and more transparent.
Our Advisory
These reforms present both opportunities and compliance requirements for businesses. Early adaptation will help you avoid penalties and optimize your tax position.
In a remarkable turnaround, Nigeria’s stock market has emerged as the world’s best performing equity market in dollar terms this year, according to Bloomberg data tracking 92 global exchanges. Nigerian equities have posted approximately 67-68% returns in USD, edging past South Korea’s Kospi index, which has cooled into bear market territory as investor enthusiasm for AI stocks wanes. This achievement highlights the impact of President Tinubu’s economic reforms, improved forex liquidity, rising oil prices, and renewed foreign investor interest. For Nigerian investors and the diaspora, this rally underscores domestic opportunities in a challenging global environment.
Several factors have propelled the Nigerian Exchange (NGX) All-Share Index higher:
In contrast, South Korea’s market, heavily weighted toward AI and semiconductor giants like Samsung and SK Hynix, has faced profit-taking and concerns over U.S.-China tech tensions, leading to a correction.
Nigeria’s performance stands out among emerging and developed markets. While many indices grapple with inflation, geopolitical risks, and high valuations in tech, Nigerian stocks have benefited from undervaluation and domestic catalysts. This positions Nigeria favorably for long-term growth, especially with potential listings like Dangote Refinery.
While celebratory, sustainability depends on continued reforms, inflation control, and infrastructure improvements. Foreign investors should monitor FX policies and corporate governance.
For Akinyele Oluwale & Co Investment Ltd. clients, this rally aligns with our focus on Nigeria-centric opportunities and regulated investments. The NGX’s outperformance validates optimism in Africa’s largest economy.
