2026 Outlook: Tax Reform Update and Trading Investment Plan Communication
Dear Valued Clients and Esteemed Investors,
We extend our sincere appreciation to you for your continued trust, cooperation, and partnership with Akinyele Oluwale & Co. Your confidence and commitment remain fundamental to our ability to serve you effectively across our tax advisory and trading investment plan engagements.
Tax Reform Update
We commend our clients for their consistent fulfillment of tax obligations and their contribution to Nigeria’s socio-economic development during the last fiscal year. Your compliance—whether as corporate entities or individual taxpayers—plays a critical role in national growth, infrastructure development, and public service delivery.
As we transition into 2026, Nigeria’s ongoing Tax Reform agenda is aimed at building a fairer, simpler, and more growth-oriented tax system. Key developments include enhanced tax administration through expanded digital platforms, the transition from FIRS to the Nigeria Revenue Service (NRS), reduced compliance burdens, and improved taxpayer services. Importantly, the reforms prioritize broadening the tax base rather than increasing tax rates, encouraging voluntary compliance, and strengthening transparency and accountability in tax revenue utilization.
Corporate taxpayers continue to benefit from reforms that support ease of doing business, clearer regulatory guidance, and incentives for investment and job creation. Individual taxpayers equally benefit from improved taxpayer identification systems, balanced enforcement mechanisms, and increased taxpayer education and awareness.
We remain fully committed to keeping you informed, compliant, and strategically positioned under the evolving tax landscape.
Trading Investment Plan Update
Reflecting on the 2025 financial year, we sincerely appreciate your patience, trust, and confidence in our investment operations. The year presented significant global and local market challenges that impacted financial markets broadly. These conditions contributed to the delayed and, in some instances, failed payouts experienced during the period.
We wish to clearly reaffirm that these setbacks were driven by market conditions and not by any lack of commitment, integrity, or operational diligence on our part.
Looking ahead to 2026, we remain firmly focused on stabilizing operations and addressing outstanding payout obligations. Strategic measures are already being implemented to mitigate market risks, strengthen performance, and enhance resilience. We are confident that these steps will support improved outcomes in the near term.
We deeply value your partnership and remain committed to transparency, accountability, and sustainable long-term growth.
Thank you for your continued support as we move forward together.
Yours faithfully,
Akinyele Oluwale & Co.
Bank of England Governor Andrew Bailey has detailed plans to allow widely utilized stablecoins access to central bank accounts, while cautioning that these tokens could transform Britain’s financial landscape.
As reported by the Financial Times, Bailey characterized stablecoins as a technology capable of decoupling money holding from credit provision, which could potentially diminish the influence of commercial banks within the economy.
The governor asserts that this transition would necessitate careful oversight to maintain the connection between money and credit creation that is essential for economic activity.
His remarks come as the Bank of England prepares to release a consultation paper regarding its systemic stablecoin framework, which will establish standards for tokens that are used extensively for everyday transactions or for settling tokenized financial markets.
BoE Suggests Access to Central Bank Accounts Due to Deposit Drain Worries
Bailey clarified that the current financial system in Britain merges money holding with credit provision through fractional reserve banking, where deposits from commercial banks directly facilitate lending to households and businesses.
He pointed out that stablecoins could enable a different structure where money and credit provision are somewhat distinct, allowing banks and stablecoins to coexist while non-banking entities engage in more lending activities.
The central bank has also suggested ownership caps ranging from £10,000 to £20,000 for individuals and £10 million for corporations concerning systemic stablecoins.
Sasha Mills, the Bank’s executive director for financial market infrastructure, mentioned that these limits would “reduce financial stability risks arising from significant and swift withdrawals of deposits from the banking sector.”
Bailey emphasized that the assets backing stablecoins must be devoid of credit, interest, and exchange rate risks to maintain value stability, and should be supported by insurance schemes and statutory resolution frameworks akin to those for bank deposits.
He further stated that exchange terms need to be transparent, consistent, and easily convertible into other forms of money, rather than reliant on crypto exchanges and their operational terms.
The governor recognized that while the technology behind stablecoins is innovative, it raises a longstanding central banking issue regarding the assurance of the connection between money and credit creation.
Crypto Sector Opposes Proposed Stablecoin Limitations
Tom Duff Gordon, the vice-president of international policy at Coinbase, expressed to the Financial Times that "setting limits on stablecoins is detrimental to UK savers, harmful to the City, and adverse for sterling," noting that no other significant jurisdiction has found such caps necessary.
In a similar vein, Simon Jennings, executive director of the UK Cryptoasset Business Council, contended that "restrictions simply do not function effectively in reality" since stablecoin issuers are unable to track token holders in real time.
He cautioned that implementing caps would necessitate expensive new systems, such as digital IDs or ongoing coordination between wallets.
Riccardo Tordera-Ricchi, director of policy at The Payments Association, also remarked, "just as there are no restrictions on cash, bank accounts, or e-money, there is no justification beyond skepticism for imposing limits on stablecoin ownership."
This backlash risks escalating tensions between the Bank of England and the Treasury after Chancellor Rachel Reeves pledged in her Mansion House address to "advance developments in blockchain technology, including tokenized securities and stablecoins."
In light of the persistent criticism, the Bank of England has indicated that its suggested limits could be "transitional" as the financial system adapts to the rise of digital currency.
