Echotitbits – Nigeria News

Tag: tax reform

  • NEPZA asks for 10-year transition window as Nigeria tightens tax incentives for SEZs

    NEPZA asks for 10-year transition window as Nigeria tightens tax incentives for SEZs

    2025-12-15 08:00:00

    According to The Punch, the Nigeria Export Processing Zones Authority (NEPZA) urged the Federal Government to grant a 10‑year tax relief/transition period for operators in Special Economic Zones to protect investor confidence as a new tax act approaches implementation.

    Punch reports NEPZA warned that abrupt changes to incentives could disrupt long-term business plans for manufacturers, logistics hubs and exporters that invested under existing free-zone frameworks.

    The agency’s position, the report adds, is that predictable incentives remain central to global free-zone models and help Nigeria compete for investment.

    Analysis/Echotitbits take: The policy trade-off is between widening the tax base and keeping Nigeria’s SEZ proposition competitive. Watch how the new tax act treats legacy incentives, whether a phased approach is adopted, and the response from manufacturers and export-oriented investors.

    Source: The Punch — December 6, 2025

    Photo credit/source: The Punch

    The Punch https://punchng.com/tax-reform-nepza-seeks-10-year-tax-relief-for-investors/ December 6, 2025

  • 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

  • FG Sets Up Panel to Drive Capital Gains Tax Implementation

    The Federal Government has inaugurated a National Capital Gains Tax Implementation Committee to improve enforcement of CGT laws. Finance Minister Wale Edun says the move will boost non-oil revenues and plug leakages from asset sales.

    PUNCH

    11 Dec 2025