Capital-Flight Jitters as 2025 Tax Act Looms
If the business lobby is right, Nigeria’s money could soon be booking one-way tickets abroad. With the 2025 Nigeria Tax Act set to kick in on 1 January, a chorus of CEOs is warning that tougher levies may spook investors. Hon. Dele Kelvin Oye told Arise News the Act’s headline grabber, a 200 % jump in Capital Gains Tax to 30 %,“drastically reduces potential returns, making Nigeria significantly less attractive than regional competitors.” For more background on current tax reforms, readers may explore our Introduction To Nigerian Tax Laws.
Beyond CGT, the law layers on a 4 % Development Levy, a 15 % minimum effective tax rate for big multinationals and a rollback of Free Trade Zone perks. Supporters argue the overhaul is essential to plug budget holes after years of volatile oil revenues. Critics counter that piling costs on businesses could derail desperately needed foreign capital.
“Nigeria stands at a critical juncture,” Oye said, framing the debate as growth versus revenue. For now, boardrooms are running the numbers and weighing relocation options. The reaction was swift: tax advisers report a spike in calls from clients asking whether to press pause on new projects until the dust settles.
Around the Tax World
• Tinubu names a steering committee. President Bola Tinubu approved the National Tax Policy Implementation Committee, chaired by tax guru Joseph Tegbe, to oversee the roll-out of the new laws (Al-Jazirah News).
• House Speaker backs green-tax tweaks. Tajudeen Abbas said the National Assembly is “committed to continuous tax reforms” that support Nigeria’s energy-transition agenda (The PUNCH).
• Personal accounts off the TIN hook. Committee chair Taiwo Oyedele clarified that Tax Identification Numbers are only required when personal bank accounts are used for business deals (TheNigeriaLawyer).
• Read the fine print, alumni urge. Former FIRS boss Ifueko Okauru warned that ignorance of the “consolidated” tax code could leave households exposed to penalties (New National Star).
By the Numbers
Prime Number: 0 %, the new income-tax rate for Nigerians earning up to ₦800,000 a year, part of the progressive bands highlighted by The Guardian.
Looking Ahead
All eyes are now on Tegbe’s committee to release its first implementation roadmap before the year-end holidays. Until then, CFOs are hanging tight, and sharpening their calculators. For a comprehensive overview of the reform measures, readers can review the Nigerian Tax Laws 2025 - Comprehensive Tax Reform Legislation.
Prepared by MyTax - mytax.com.ng