Nigeria Proposes Radical New Tax Framework for Multinational Enterprises in 2026

Information released by Bloomberg Tax and echoed in local briefings indicates that Nigeria has implemented a significant overhaul of its tax laws specifically targeting multinational enterprises (MNEs). The new Nigeria Tax Act (NTA) expands the “tax nexus,” ensuring that foreign companies deriving income from Nigeria through digital platforms or services are subject to taxation, even without a physical presence. The law also introduces a minimum profit margin for nonresident companies to prevent profit-shifting to lower-tax jurisdictions.
This move is part of a broader “Revenue Mobilization and Fiscal Transparency” strategy for the 2026 fiscal year. The Federal Government aims to use these reforms to position Nigeria as a premier destination for long-term foreign direct investment while ensuring that the domestic economy benefits from the digital economy. The law specifically targets income from services provided to Nigerian residents and insurance premiums received by foreign firms.
The Nation and Proshare have validated these details, with Proshare noting that “the Federal Ministry of Finance is anchoring this on a Growth Acceleration strategy.” The Nation cited the CBN’s 2026 outlook, which predicts that “improved tax collection from the non-oil sector will be a major driver of the projected 4.49% GDP growth.”
Echotitbits take: This is Nigeria’s “Digital Tax” moment. By following OECD models while adding local flavor, the government is trying to capture revenue from global tech and service giants. The challenge will be enforcement; watch for how the FIRS handles potential disputes with multinational corporations over these new “nexus” rules.
Source: BusinessDay – https://businessday.ng/business-economy/article/nigerias-15-effective-tax-rate-reshapes-investment-landscape/, February 16, 2026
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