By Aduragbemi Omiyale

The Nigerian arm of global consultancy firm, KPMG, has highlighted some inherent errors, inconsistencies, gaps and omissions in the country’s new tax laws.

In a report on its website, analysed by Business Post, KPMG Nigeria charged the local authorities to address these issues to boost investor confidence.

It noted that while the new tax laws would result in increased revenue for the government, there is always the need to strike a delicate balance between revenue generation and sustainable growth.

“It is, therefore, critical that government review the gaps, omissions, inconsistencies and lacunae highlighted in this newsletter to ensure the attainment of the desired objectives. Government must also seek international cooperation and collaboration to facilitate the sharing of information, build capacity and capability of tax administration in the country,” it said.

Analysing an error in Section 3(b) and (c) of the Nigeria Tax Act (NTA), which dwells on the imposition of tax, the agency said the section specifies persons on whom taxes should be levied, including individuals, families, companies or enterprises, trustees, and an estate, but omits community, which is included in the definition of person under Section 201.

It recommended that, “If the intention is to impose tax on communities, this should be explicitly introduced in Section 3. Otherwise, the law should clearly state that communities are now exempt from tax.

It also pointed out that Section 6(2) of the NTA on Controlled Foreign Companies (CFC), the Act states that undistributed foreign profits are to be “construed as distributed” but also mandates that they be “included in the profits of the Nigerian company” (implying income tax at 30 per cent).

Though dividend distributed by a Nigerian company is deemed to be franked investment income, this does not appear to be the case with dividends distributed by foreign companies.

It thus appears that such dividends will be taxed at the income tax rate. Consequently, there will be differences in the treatment of dividends distributed by Nigerian companies and those distributed by foreign companies.

KPMG Nigeria advised the government to “modify the section by providing clarity on the treatment of foreign and local dividends.”

On Section 20(4) of the NTA focusing on deductions allowed, it states that expenses incurred in a currency other than the Naira may only be deducted to the extent of its Naira equivalent at the official exchange rate published by the Central Bank of Nigeria (CBN).

This implies that where a business buys forex at a rate that is higher than the official rate, such company cannot claim tax deduction for the difference in value between the official and the other rates.

The intention is to discourage speculative foreign exchange transactions and encourage the appreciation of the Naira. However, issues surrounding the accessibility of all forex needs due to supply problems have not been fully considered.

It recommended that, “We do not think that this condition is necessary at this time. With the current state of the economy, focus should be on improving liquidity and introducing stricter reporting requirements to track and monitor foreign exchange transactions.”

As for the next section, which dwells on deductions not allowed, it includes expenses on which VAT has not been charged. This means that such expenses will not be considered allowable tax deductions even when those expenses have been validly incurred for business purposes.

This implies that a company could be held accountable for any inaction or non-performance by its suppliers or service providers. While the defaulting service providers may eventually be required to pay the VAT during an audit or investigation, the company will have already been denied the ability to claim a deduction for the related expense.

It called for the removal of this section, saying “the only criteria should be that any expense that is wholly and exclusively incurred for business purposes should be allowable for tax purposes.”

Other sections it found errors in include Section 17(3)(c) of the NTA on  taxation of non-resident persons, Section 27 of the NTA on the ascertainment of total profits of companies, Section 30 of the NTA on the ascertainment of chargeable income of an individual, Sections 39 and 40 of the NTA on computation of chargeable gains, Section 47 of the NTA on indirect transfer of ownership of companies or assets, Section 63(4) / 162(b) of the NTA on collective investment scheme, amongst others.

By Aduragbemi Omiyale

The Securities and Exchange Commission (SEC) has accused an investment online platform, Investment Management (VIM), of operating illegally in the Nigerian capital market.

In a notice obtained from the website of capital market regulator by Business Post, Voya Investment was accused of deceiving unsuspecting members of the public with fake certificate of identity verification, purportedly issued by SEC.

The agency emphasised that Voya Investment is not authorised to operate in the nation’s capital market because it is not registered to do so.

“The operators of this platform claim to offer investment services in Nigerian stocks and other financial instruments purportedly under the supervision of the Commission. Voya Investment Management is also parading a certificate of identity verification purportedly issued by the commission.

“The commission hereby informs the public that Voya Investment Management (VIM) is NOT REGISTERED or licensed by the commission to carry out any activity in the Nigerian capital market,” parts of the statement stressed.

The organisation further declared that, “The certificate being paraded by Voya Investment Management was neither issued nor endorsed by SEC Nigeria as the commission does not issue certificates of identity verification.

“Furthermore, claims by VIM that it is supervised, licensed, or approved by the commission to undertake operations in the capital market are false, misleading and fraudulent.”

It added that, “Complaints received by the commission regarding the fraudulent activities of VIM and the misleading information by the company to the investing public that it is licensed by the commission, bear clear characteristics of illegal investment schemes designed to defraud unsuspecting members of the public.”

“Accordingly, the public is advised to refrain from dealing with Voya Investment Management (VIM) , as any person who engages with the entity or its representatives does so at his/her own risk.

“The commission hereby reiterates that transacting in the Nigerian capital market with unregistered entities exposes investors to financial risks including fraud and potential loss of investments.

“The investing public is therefore reminded to VERIFY the status of companies and entities purporting to offer investment opportunities in the capital market on the commission’s dedicated portal – www.sec.gov.ng/cmos, prior to transacting with such companies and entities.”

By Adedapo Adesanya

PwC Nigeria has projected that Nigeria’s real Gross Domestic Product (GDP) would grow at about 4.3 per cent this year, supported by higher crude oil production and stronger performance in dominant sectors.

The consultancy firm gave this projection in its Economic Outlook 2026 released on Wednesday.

It also said the Naira is expected to remain broadly stable through 2026, underpinned by ongoing reforms by the Central Bank of Nigeria (CBN) and improved portfolio inflows.

Headline inflation is also projected to moderately ease, supported by the CBN’s tight monetary policy stance, rebasing effects, and improved stability in the foreign exchange market.

With regards to interest rate, the PwC report said with inflation trending down, the apex bank may cautiously ease its monetary policy stance this year.

The report, however, said fiscal sustainability risks are expected to persist, driven by low revenue to GDP, fiscal leakages, higher spending and elevated debt service obligations.

PwC Nigeria said with fiscal constraints persisting, they reinforce the importance of capital efficiency and balance-sheet discipline.

Against this backdrop, PwC Nigeria highlights practical imperatives for business leaders in 2026: making selective investment bets in attractive sectors and regions, and scenario-planning for macroeconomic and geopolitical shocks.

Other imperatives for business leaders include adapting business models and cost structures for resilience, accelerating digital transformation and responsible AI adoption, and strengthening regulatory and tax compliance as reforms move from design to execution.

The firm noted that Nigeria recorded improvements in macroeconomic stability in 2025 following key monetary and foreign-exchange reforms, with inflation easing, exchange-rate conditions stabilising, and external reserves strengthening.

Speaking on this, the Country Senior Partner, PwC Nigeria, Mr Sam Abu, said: “PwC Nigeria’s Economic Outlook 2026 provides forward-looking analysis of key macroeconomic indicators and what they signal for the economy and for business leaders.

“Nigeria has achieved improved macroeconomic stability over the past year. The focus now is how that stability is translated into sustainable economic growth, and how businesses position for 2026. For companies, this stability provides a more predictable operating environment for planning, investment, and growth decisions.”

On his part, the Partner and Chief Economist, PwC Nigeria, Mr Olusegun Zaccheaus, said, “Globally, growth is projected at around 3.1 per cent, while merchandise trade growth slows to about 0.5 per cent, keeping oil prices, capital flows, and access to foreign inflows as key channels influencing Nigeria’s growth and FX liquidity.

“Domestically, improved monetary effectiveness has reduced volatility and clarified pricing, cost, and funding signals, even as fiscal pressures, security challenges, and weak household purchasing power continue to shape sector outcomes.”

According to Mr Zaccheaus, “growth is more likely to remain concentrated in services and selected capital-intensive sectors, placing a premium on disciplined capital allocation and sector selection.”