Economy
KPMG Identifies Inherent Errors, Inconsistencies, Others in Nigeria’s New Tax Laws
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 Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited and Dangote Refinery imported a total of 38,000 barrels per day of petrol in May 2026 as the country returned actively to the importation of the fuel.
According to a report by Argus, gasoline (petrol) deliveries to Nigeria were a four-month high of 57,000 barrels a day in the review month.
This came after import permits were issued for the second quarter and market participants flagged maintenance works at independently-owned Dangote’s 700,000 barrels per day Lekki refinery.
The platform reported that petrol exports from Nigeria were 23,000 barrels per day, of which Dangote carried out 65 per cent of the product at 15,000 barrels per day.
This meant Nigeria returned to net gasoline importer status in the month, after net exporting 49,000 barrels per day in April and 6,000 barrels per day in March, citing Kpler data.
The sole destination of all Nigeria’s petrol imports in May came from Europe. A breakdown showed that Nigeria got 37 per cent (21,000 barrels per day) from Norway, Italy provided 16 per cent (9,000 barrels per day), and France covered 14 per cent (8,000 barrels per day).
Out of the 57,000 barrels per day of product brought into the country, Dangote Refinery bought 27,000 barrels per day while the state-owned NNPC brought in 11,000 per day.
Argus, citing Kpler, said the buyer or buyers of the remaining 19,000 barrels per day. These were likely independent marketers who were issued import licenses during the month.
This means Dangote remains the top petrol producer and importer in the country. The refinery owner brought in 29,000 barrels per day of the 67,000 barrels per day total petrol imports in January-May.
According to the Argus report, Nigerian petrol imports have been elevated so far in June, with license holders likely to exercise their allocations before expiry at month-end. AA Rano has landed 56,000 barrels per day, and NNPC has imported 121,000 barrels per day. The 177,000 barrels per day of petrol cargo arrivals in June to date are three times higher than in May and up from 140,000 barrels per day in June 2025.
By Adedapo Adesanya
The Director-General of the Securities and Exchange Commission (SEC), Mr Emomotimi Agama, has called for stronger collaboration among African capital markets to enhance regional integration, promote cross-border investments, and drive economic growth across the continent.
Mr Agama made the call in Abuja on Monday during the signing of a Memorandum of Understanding (MoU) between Nigeria’s Securities and Exchange Commission and the Capital Markets Authority (CMA) of Rwanda.
The agreement is aimed at strengthening cooperation between the two regulatory bodies in areas including investor education, capital market development, information exchange on regulatory and market developments, capacity building, technical assistance, and cooperation on enforcement and supervisory matters.
According to the MoU, both parties recognise the importance of collaboration in fostering confidence, innovation, market development, and sound practices within their respective capital markets, while also supporting regional and international engagement.
Speaking at the signing ceremony, Mr Agama emphasised the need for African countries to deepen cooperation and invest in one another’s markets to build a more interconnected and prosperous continent.
“We are excited about this opportunity to help develop your capital market. We need to cooperate in Africa, invest in each other’s markets and grow our continent. In so doing, we will build collaboration so that, as Africans, we can have a common focus and create a strong interconnection. The time is now for us to look inwards,” he said.
The SEC Director-General commended Rwanda’s economic progress and acknowledged the country’s achievements in attracting investment and promoting commerce.
“We appreciate the strength of the Rwandan economy and the efforts made to rekindle the real value of the African race. On our part, we have a very strong capital market structure, and we want to see what role the capital market can play in advancing Africa’s development agenda,” Agama stated.
He described the capital market as the nerve centre of the economy, stressing the need for citizens to understand and utilise it as a tool for wealth creation and improved living standards.
“The capital market is an enabler of economic development, and we believe there is much Rwanda can learn from Nigeria’s experience to strengthen its market. We are willing to contribute to the success of other nations because our relationship and integration will help build both markets and improve the lives of our citizens,” he said.
Mr Agama further urged African governments to leverage long-term capital from the market to finance infrastructure projects, describing the capital market as a critical solution for mobilising sustainable development financing.
“We see the capital market as a solution provider for moving economies forward. We want to make Africa better and a destination of choice for investors. We are committed to working jointly with other regulators to achieve this objective,” he added.
In his remarks, Chief Executive Officer of the Capital Markets Authority of Rwanda, Mr Romeo Ngarambe, welcomed the partnership and expressed confidence that the collaboration would support the growth of Rwanda’s capital market.
“We are here to learn from Nigeria, which has a more advanced capital market. We are confident that the lessons and experiences shared will contribute significantly to the development of our market. Whatever knowledge you provide, we will make good use of it, and we look forward to a fruitful partnership,” Mr Ngarambe said.
The MoU is expected to strengthen regulatory cooperation between both countries and support broader efforts toward the integration and development of African capital markets.
By Aduragbemi Omiyale
To reinforce its commitment to Nigeria’s industrial growth, one of the leading cement manufacturers in the country, Lafarge Africa Plc, has unveiled a new corporate identity, rebranding to HBM Nigeria Plc.
According to the chief executive of the organisation, Mr Lolu Alade-Akinyemi, the new identity signals a forward-looking phase for the company, driven by operational excellence, innovation, sustainability, and long-term value creation.
He noted that the transition marks a significant milestone in the company’s transformation journey and strategic alignment with its new shareholder structure, reflecting the company’s continued evolution as one of Nigeria’s leading building solutions providers, combining strong local roots with enhanced global industrial collaboration.
He reaffirmed that the name change will not affect its operations, workforce, customers, shareholders, or its unwavering commitment to Nigeria’s economic growth and infrastructure development.
“HBM Nigeria Plc represents an exciting new chapter in our journey as a leading building solutions company. While our corporate identity is evolving, our commitment to Nigeria remains unwavering.
“We remain focused on delivering quality cement, concrete, aggregates, and innovative building solutions that support infrastructure development, housing growth, and industrialisation.
“This transition positions us for the future while reinforcing the values of excellence, sustainability, customer satisfaction, and responsible business practices that have defined our legacy for decades,” he stated.
Mr Alade-Akinyemi explained that the transition to HBM Nigeria Plc will be implemented through a structured, phased process across the company’s nationwide operations, adding that employees, customers, shareholders, investors, host communities, and other stakeholders should expect seamless business continuity, sustained investments across the country, and an even stronger focus on creating long-term economic and social value.
In his remarks, the Chairman of HBM Nigeria Plc, Mr Gbenga Oyebode, said the transition is designed to position the company for enduring success while remaining true to the values and principles that have shaped its legacy over the decades.
“I would like to express my sincere appreciation to our shareholders for their continued trust, to the Board and Management for their leadership, and to our employees whose dedication and commitment continue to drive the company forward.
“We are confident that HBM Nigeria Plc will continue to create sustainable value for shareholders, strengthen stakeholder trust, and deliver on its long-term ambitions,” Mr Oyebode said.
Also speaking at the event, the Minister of Works, Mr David Umahi, commended HBM Nigeria Plc for its significant contributions to Nigeria’s infrastructure development by delivering landmark projects across the country.
Highlighting the company’s role in supporting the federal government’s infrastructure agenda, he said, “I can talk about Lafarge for a whole day because we have come a long way. Though the company is very strict and of high integrity, I can say that their products are impeccable.”
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