TAX

Under the old, repealed Value Added Tax Act, businesses were trapped in an unfair, distorted tax system that treated essential operational expenses as luxury overheads.

If your organization still handles tax correspondence with that casual approach, your business is operating under a severe financial hazard. Under Section 108 of the Nigeria Tax Administration Act (NTAA) 2025, the government has fundamentally overhauled the penalty regime for non-responsiveness and information withholding.

Nigeria's federally collected revenue received a major boost in August 2026 as the Nigeria Revenue Service (NRS) generated N3.70 trillion in tax and related revenue, driven largely by strong petroleum taxes, royalties and Value Added Tax (VAT) receipts.

Tax revenue per person shows that the South West generated ₦42,327 per capita, substantially higher than the ₦27,066 recorded in the South South and ₦17,522 in the North Central.

Data from the National Bureau of Statistics (NBS) showed that PAYE remained the largest source of tax revenue for state governments, accounting for about 69.5 percent of the N3.79tn collected from taxes during the year.

Under Section 21(p) of the Nigeria Tax Act (NTA) 2025, the government has established a strict statutory cross-link between transactional taxes and profit taxes. The provision explicitly mandates that if VAT was due on a business expense under the Act but was not charged, or if applicable import duties and levies were not paid on imported items, the entire underlying expense becomes non-deductible for income tax purposes.

Zenith Bank Plc reported a 1.91 percent year-on-year increase in profit before tax to ₦637.6 billion for the half-year ended June 30, 2026, and proposed a 20 percent increase in its interim dividend to ₦1.50 per share.

The Nigeria Revenue Service (NRS) has sealed the headquarters of Kaduna Electric over alleged non-compliance with its statutory tax obligations.

The findings were contained in the apex bank’s latest Business Expectations Survey, which showed that while firms remained concerned about several aspects of the operating environment, overall business sentiment stayed positive during the month.

Under the old, fragmented regulatory landscape, tracking virtual asset transactions felt like an impossible task for the government. Cryptocurrencies operated in a grey market, allowing traders to buy, sell, stake, and yield-farm without clear rules about formal tax reporting.