What Nigeria’s New Tax Laws Really Mean for Startups, VCs & Creators
Tripled CGT. Offshore exits taxed. Remote workers under scrutiny. This is the new Nigerian tax era — decoded for tech, VC, and entertainment.
Nigeria’s new tax reforms have officially become law. While most headlines focus on digital taxes or enforcement, the truth is this is a full-scale structural reset. Over 50 fragmented provisions have been consolidated. Legacy levies eliminated. Cash-based collections banned. Enforcement and filings fully digitized.
For tech operators, IP holders, investors, and global dealmakers, here’s what you need to know — and prepare for.
Startups under ₦100M turnover get real breathing room
Companies making less than ₦100 million (~$65K) annually now enjoy broad exemptions:
No Companies Income Tax (CIT)
No Capital Gains Tax (CGT)
No Development Levy
Withholding tax relief on small payments
Audit waivers
This isn’t cosmetic — it’s an operational tailwind for early-stage teams still building product-market fit.
Larger businesses see reduced taxes — but new rules apply
Corporate tax (CIT) rates drop gradually:
30% → 27.5% in 2025
27.5% → 25% from 2026
At the same time, a new 4% Development Levy kicks in. It replaces multiple legacy levies (TETFund, ITF, NASENI, Police Trust Fund). The result? A cleaner, flatter system — and a lower overall effective tax rate of ~29%.
Still, this requires recalibration of forecasts and profit-sharing assumptions in scaling ventures.
Capital Gains Tax just became a strategic risk
The CGT rate for companies triples — from 10% to 30%.
More importantly, CGT now applies to indirect offshore disposals. So if a foreign SPV (say, Mauritius or Delaware) sells its stake in a Nigerian company, Nigeria claims taxing rights.
This impacts any acquisition, PE exit, or holding company unwind that touches Nigerian shares — even if the transaction happens abroad.
VC, private capital & founder liquidity events need a rethink
Founder secondaries, employee liquidity windows, and LP exits are directly in CGT scope now.
Take Moniepoint’s 2024 round, where insiders sold stakes worth between $20K–$850K — under the new law, that kind of offshore-structured liquidity would likely trigger Nigerian tax.
Going forward, any offshore waterfall must consider 30% CGT exposure and local compliance friction. Exits will need cleaner structuring from day one.
FIRS is gone. NRS is in. And it’s not just rebranding.
The new Nigeria Revenue Service (NRS) centralizes tax administration across federal, state, and local levels. It’s designed as a “control tower” with digital filing, unified protocols, and stricter oversight.
Expect:
Mandatory e-invoicing systems
Standardized filing across all jurisdictions
Cross-checks and audit trail enforcement
For group structures, this makes legacy patchwork compliance strategies obsolete.
Remote work, freelance income, and global earnings under the microscope
The new rules clarify:
Non-residents are only taxed on Nigerian income if services are physically rendered in Nigeria
Nigerian residents are taxed on their worldwide income, no matter where they live or work
That means remote developers, YouTubers, and cross-border creators with global clients now face greater enforcement and reporting expectations.
Dispute resolution gets an upgrade — finally
For the first time, the system introduces both a Tax Appeal Tribunal and a Tax Ombudsman.
This creates:
Faster dispute resolution
Mediation options before escalation
More clarity in how disputes are heard across tax types
Combined with the shift to digital filing, Nigeria is making tax compliance less chaotic — and slightly less adversarial.
The bottom line
These reforms are serious. And they’re imminent.
Startups get runway.
Mid-sized firms get clarity (and a leaner rate).
Investors and acquirers must rethink structures.
Remote talent and IP-rich operators must tighten compliance.
The ones who restructure early will avoid pain and penalties later.
If you’re thinking about how this affects your investment structure, IP vehicle, or exit timeline — now is the time to act.