Echotitbits – Nigeria News

Tag: corporate tax

  • FG grants two-year cushion as 149 pioneer-status firms transition to new tax regime

    FG grants two-year cushion as 149 pioneer-status firms transition to new tax regime

    Photo Credit: Wikimedia Commons
    2025-12-19 13:00:00

    As reported by The Punch, the Federal Government says 149 companies currently enjoying pioneer-status incentives will retain their tax holidays for at least two more years as Nigeria transitions to a new tax regime from January 2026.

    The decision is framed as a stability measure so firms approved under the old regime don’t face a sudden cliff-edge while a redesigned incentive framework takes effect.

    Verification: MSME Africa also reported the two-year cushion for existing beneficiaries, while KPMG’s tax note discusses the transition to the Economic Development Tax Incentive (EDTI) scheme effective January 1, 2026.

    Quotes: MSME Africa: “retain their tax holidays for at least two more years…” KPMG: “transition… takes effect January 1, 2026.”

    Analysis/Echotitbits take: Incentives must be disciplined and outcome-based. Watch for transparency on beneficiaries/sectors, measurable investment and jobs delivered, and whether the new scheme reduces rent-seeking.

    Source: The Punch — 2025-12-19 — https://punchng.com/149-firms-retain-tax-holidays-under-new-law-fg/

    The Punch 2025-12-19

  • FG projects nearly ₦1.9trn from new 4% Development Levy in 2026 budget year

    FG projects nearly ₦1.9trn from new 4% Development Levy in 2026 budget year

    According to The Punch, the Federal Government is projecting about ₦1.899 trillion from the newly introduced 4% Development Levy in 2026, as the levy begins to feature in budget planning following Nigeria’s 2025 tax reforms.

    Punch reported that the levy is structured as a consolidation mechanism, rolling multiple earmarked levies into one charge on assessable profits, with the aim of simplifying compliance and improving collection efficiency.

    Deloitte’s tax update on the reform package described the measure as an “introduction of 4% development levy to replace the Tertiary Education Tax and various levies,” stressing the compliance and administrative simplification angle.

    EY’s highlights of the Nigeria Tax Act 2025 similarly note that Section 59 replaces several earmarked taxes with a unified 4% development levy on assessable profits (with stated exclusions for certain company categories).

    Analysis/Echotitbits take: The test will be whether “consolidation” actually reduces friction for businesses or simply changes the label on compulsory payments. Watch for implementation guidance, agency handovers (who collects what and when), and whether the levy materially affects investment decisions—especially for sectors that previously paid some of the constituent levies at different effective rates.

    Source: The Punch — 14 Dec 2025 (https://punchng.com/fg-eyes-n1-9tn-from-new-2026-development-levy/)

     

    Photo: Twitter/@atikuabagudu