TAX SERVICES

In a major leap toward digital transformation, the Corporate Affairs Commission (CAC) has officially launched an AI-powered upgrade to its Company Registration Portal (CRP), signaling a new era in how businesses are incorporated and regulated in Nigeria. The announcement was made on Monday by Registrar-General Hussaini Magaji during a stakeholders’ forum held in Kano. Describing the initiative as a “complete overhaul” of the previous system, Magaji explained that the AI implementation is not just a superficial upgrade — it’s a reengineering of the entire business registration and compliance framework. What the New System Brings to the Table Launched in June 2025, the revamped portal is designed to streamline key processes within the Commission, including: According to the Registrar, one of the standout features of the new system is the introduction of an AI agent capable of handling routine tasks with speed and precision — reducing delays that have long plagued Nigeria’s business registration process. Key Features of the AI-Driven CRP Here are some notable improvements: 🔹 Instant Name Approval:Entrepreneurs and business owners no longer have to wait days to find out if their preferred company name is available. The system now offers real-time name approvals, significantly cutting down wait times. 🔹 Smart Name Suggestions:If your preferred name is already taken, the portal now generates AI-backed alternative suggestions — making it easier to move forward without starting from scratch. 🔹 Seamless User Experience:Magaji likened the simplicity of the new system to creating an email account. The process is intuitive, user-friendly, and designed to require minimal human intervention. 🔹 Compliance Integration:The system isn’t just for registration — it’s built to track ongoing compliance requirements, making it easier for companies to stay in good standing without last-minute scrambles or penalties. Why This Matters for Businesses and Advisors The CAC’s transformation comes at a critical time. As Nigeria continues to push for economic diversification and improved ease of doing business, digital infrastructure like this is essential. For entrepreneurs, this means: For legal, tax, and corporate service providers, it opens new doors to: For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.

Nigeria has just recorded over ₦600 billion in Value Added Tax (VAT) revenue from global digital giants like Facebook, Amazon, and Netflix — a first-of-its-kind achievement in the nation’s fiscal history. This landmark development marks a significant step forward in taxing foreign companies operating within Nigeria’s fast-growing digital economy. It also reinforces the Federal Inland Revenue Service’s (FIRS) commitment to modernizing tax collection in line with global best practices. 💡 Why This Matters: At [Your Firm Name], we help both local and foreign businesses navigate the evolving tax landscape — from compliance with digital VAT to restructuring operations for efficiency and sustainability. 📌 Need guidance on your company’s VAT obligations in Nigeria? For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.

Nigeria’s upcoming requirement for all taxable persons to obtain a Tax Identification Number (TIN) by January 2026 marks a significant step in modernizing the nation’s tax framework. This reform aims to broaden the tax base, reduce reliance on oil revenues, and integrate the informal economy into the formal sector. However, the implementation of this policy raises concerns about potential financial exclusion. Approximately 38 million Nigerian adults remain unbanked, and many lack access to digital identification systems. Without careful planning, the TIN mandate could inadvertently create barriers for these individuals, hindering their ability to access basic financial services. The Federal Inland Revenue Service (FIRS) has clarified that the TIN system is integrated with existing national registries, such as the National Identification Number (NIN) and Corporate Affairs Commission (CAC) records. This integration aims to streamline the process and minimize additional burdens on citizens. Vanguard News As the January 2026 deadline approaches, it’s crucial for businesses and individuals to understand the implications of this policy. Ensuring compliance while safeguarding financial inclusion will require coordinated efforts between government agencies, financial institutions, and civil society. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.

The Federal Inland Revenue Service (FIRS) has confirmed that its newly implemented Tax Identification Number (TIN) framework is fully integrated with existing national databases, including the National Identification Number (NIN) for individuals and Corporate Affairs Commission (CAC) records for registered entities. Recent speculation on social media suggested that, beginning January 2026, Nigerians would be required to present a TIN to open or maintain a bank account. However, this interpretation has been officially refuted. According to Arabinrin Aderonke Atoyebi, Technical Assistant on Broadcast Media to the Executive Chairman of FIRS, Zacch Adedeji, these reports are misleading. In a public statement, she clarified that the current system automatically generates and links TINs to existing identifiers—NIN for individuals and RC Numbers for businesses—eliminating the need for separate TIN applications or physical presentation during banking or Know Your Customer (KYC) procedures. The TIN is a 13-digit unique identifier that encodes key data such as: For individuals, the TIN is automatically derived from the NIN issued by the National Identity Management Commission (NIMC). When customers provide their NIN during bank account opening or KYC processes, the system validates the information against national databases and retrieves the corresponding TIN in real time. Similarly, for companies and other legal entities—including cooperatives, professional associations, and partnerships—the TIN is directly linked to their CAC registration number or relevant statutory registry. Banks and regulatory bodies can verify tax compliance seamlessly using these existing identifiers, without requesting additional documentation. Atoyebi further emphasized the benefits of the integrated framework, including: She concluded by reaffirming that no Nigerian will be denied banking services due to the absence of a separately issued TIN. The automated linkage ensures built-in compliance, positioning the framework as a key driver of financial inclusion and digital economic growth. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.

As part of the newly enacted Nigeria Tax Reform Acts (2025), the Federal Government will, effective January 1, 2026, reinstate Value Added Tax (VAT) and customs duties on: These changes reverse previous exemptions and are part of broader fiscal reforms aimed at increasing Nigeria’s tax-to-GDP ratio and consolidating tax administration under the new Nigeria Revenue Service (NRS) and Joint Revenue Board. Key Implications for Airlines Recommendations for Policy Makers Conclusion The reinstatement of VAT and duties in aviation reflects Nigeria’s push to expand its fiscal base, but the sector’s fragility calls for measured implementation. Poorly timed taxation could reduce connectivity, raise fares, and deter investment. A balanced, globally-aligned approach is essential. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.

At a recent strategic engagement hosted by the Presidential Fiscal Policy and Tax Reforms Committee, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, emphasized that the successful implementation of Nigeria’s new tax laws will require strong collaboration across all levels of government and the private sector. Speaking in Abuja, Adedeji noted that the FIRS—currently transitioning into the Nigeria Revenue Service (NRS)—cannot deliver the objectives of the reforms in isolation. He called for active cooperation from subnational governments, institutions, and taxpayers, stating that the reforms’ success depends on shared ownership and collective execution. “Our collective posture should be one of readiness to listen, adapt, and deliver,” Adedeji said, highlighting capacity building as a key pillar of the reform agenda. He reiterated the agency’s commitment to: Adedeji further tasked tax agency leadership with equipping officers with the tools, skills, and confidence required for modern tax administration, including: Economic Gains, But Reform Efforts Must Deepen – Oyedele Also speaking at the session, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, pointed to early signs of macroeconomic improvement under the Tinubu administration. According to Oyedele: While acknowledging these gains, Oyedele stressed the importance of deepening reform implementation to ensure the macroeconomic progress translates to poverty reduction and job creation. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.

The widely discussed 5% fuel surcharge under Nigeria’s new tax laws is not a newly introduced levy by the current administration. Rather, it is a restatement of an existing provision previously embedded in the Federal Roads Maintenance Agency (Amendment) Act, 2007 (FERMA Act). Its inclusion in the new tax laws forms part of a broader effort to harmonise Nigeria’s tax framework, enhance transparency, and provide clarity on previously fragmented statutes. Importantly, the surcharge will not take immediate effect alongside the broader tax reforms slated for implementation in January 2026. Its commencement is subject to a formal order issued by the Minister of Finance and must be published in the Official Gazette. This phased approach is designed to allow for flexibility and ensure that implementation is aligned with prevailing economic conditions. Not all fuel products will be affected. Several energy sources commonly used by households are exempt from the surcharge, including household kerosene, cooking gas (LPG), compressed natural gas (CNG), and other clean or renewable energy products. These exemptions reflect the government’s intention to protect low-income households and promote the transition to cleaner energy alternatives. The underlying objective of the fuel surcharge is to create a sustainable, dedicated funding stream for road infrastructure and maintenance. According to the government, relying solely on savings from fuel subsidy removal will not be adequate to meet Nigeria’s recurring infrastructure needs. The surcharge is therefore positioned as a complementary mechanism to provide predictable financing for safer, more efficient road networks, which in turn are expected to reduce travel time, lower logistics costs, and improve vehicle lifespan. The government also maintains that the fuel surcharge aligns with the broader goals of the national tax reform agenda. Recent policy changes have reduced or suspended multiple taxes—such as VAT on diesel, excise duties on telecom services, and the cybersecurity levy—to ease the burden on citizens and businesses while improving efficiency across the tax system. Legally, the surcharge has been removed from the FERMA Act and re-enacted within the new consolidated tax laws. This reform ensures a clearer legal basis for enforcement, improves legislative coherence, and supports longer-term sustainability planning, particularly by incentivising the adoption of cleaner energy sources. Stakeholders are advised to monitor further announcements, especially regarding the Finance Minister’s gazetted order, which will trigger implementation. Businesses with exposure to fuel inputs—particularly in transportation and logistics—should begin assessing potential cost impacts and reviewing supply chain strategies in preparation for future compliance. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.

The Nigeria Customs Service Board has officially approved a $300 de minimis threshold for low-value consignments entering the country via express shipments and passenger baggage. The new policy, which takes effect from Monday, September 8, 2025, was ratified during the Board’s 63rd regular meeting held on September 2, 2025. According to the National Public Relations Officer, Abdullahi Maiwada, the measure is designed to simplify import processes, reduce clearance delays at ports and border points, and support the growth of cross-border e-commerce. Key Highlights of the New Policy: The Customs Service emphasized that the initiative is part of broader reforms aimed at improving Nigeria’s trade facilitation environment and positioning the country as a regional hub for e-commerce logistics. Compliance and Enforcement To prevent abuse, strict monitoring and enforcement mechanisms will be applied. Any attempt to manipulate invoices, understate values, or evade duties may result in: The Service has also announced the establishment of multi-channel helpdesk platforms to assist stakeholders, handle inquiries, and resolve complaints during implementation. Additional Update: Officer Disciplinary Actions In a separate development, the Board reviewed internal disciplinary matters and: For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.

The Federal Inland Revenue Service (FIRS) has officially approved eTranzact International Plc as a certified partner for the nationwide deployment of its new e-invoicing platform, known as the Merchant Buyer Solution (MBS). This development marks a significant step in the Federal Government’s ongoing efforts to digitise tax administration. Building on the earlier Tax Administration 2.0 initiative—which saw the introduction of automated VAT collection via secure API integration with banks—this new platform is set to standardise e-invoicing across all transaction types: B2B, B2C, and B2G. According to FIRS Acting Director of Tax Automation, Mike Adoga, the selection process was conducted in collaboration with the National Information Technology Development Agency (NITDA) to ensure that only providers with proven capacity and infrastructure were approved. Tayo Koleoso, Chief of Staff to the Executive Chairman of FIRS, noted that the approved service providers were carefully evaluated for their ability to deliver secure, scalable solutions. He emphasised NITDA’s critical role in enhancing data protection and cybersecurity measures to assure taxpayers of a safe and transparent process. Niyi Toluwalope, Managing Director/CEO of eTranzact, welcomed the endorsement, stating that e-invoicing represents a major opportunity to modernise business-to-government interactions. He highlighted that beyond compliance, the platform aims to promote transparency, operational efficiency, and added value for all parties involved. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.

Nigeria’s ongoing tax reform agenda promises significant relief for businesses by eliminating input Value Added Tax (VAT) costs across entire value chains and streamlining compliance obligations. According to policymakers, these changes are aimed at lowering operational expenses, encouraging business expansion, and driving private sector-led growth. Speaking at the Nigerian Economic Society Group private sector forum, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, emphasized that the overarching objective is to create a tax environment that supports—rather than stifles—economic activity. “Taxes are a byproduct of economic growth. Without jobs or income, effective tax policies hold little relevance,” Oyedele stated, stressing the need to shift focus from tax collection to economic development. Historically, Nigeria’s tax system has placed a disproportionate emphasis on revenue generation at the expense of business viability. Oyedele noted that a more strategic approach involves enabling businesses to grow sustainably, thereby naturally broadening the tax base. A key feature of the reform is the removal of VAT on critical inputs across sectors such as food, healthcare, housing, education, and transportation. Unlike other jurisdictions—such as Ghana—where businesses can recover VAT on input costs, Nigerian companies have historically borne these expenses directly. The reforms aim to correct this imbalance, enhancing business competitiveness and profitability. “In Nigeria, whether you’re producing goods or delivering services, VAT on capital expenditure is a sunk cost. That’s changing,” Oyedele explained. By granting VAT recovery rights, businesses are expected to experience reduced cost burdens. Over time, market forces are likely to translate these savings into lower prices for consumers, thereby supporting inflation management and improving affordability. “Ultimately, what affects businesses affects consumers. Lower business costs can mean lower prices, even if not immediately,” he added. The reform framework positions the private sector as the primary engine of economic growth and a sustainable tax base. From SMEs to large corporates, the anticipated reduction in tax-related bottlenecks is expected to free up capital for investment, expansion, and job creation. With Nigeria’s tax-to-GDP ratio still below 10%—one of the lowest globally—these reforms represent a strategic pivot towards long-term economic competitiveness, increased formalisation, and greater attractiveness to both domestic and international investors. Beyond tax policy, Oyedele highlighted the need to address structural challenges such as multiple taxation, poor infrastructure, and high logistics costs—all of which distort market efficiencies and erode business margins. For example, the cost differential between rural and urban food prices is largely attributable to man-made inefficiencies rather than supply constraints. “We’ve halted monetary expansion; now the priority must be to lower business costs through coherent fiscal policy and coordinated reforms,” he said. The new tax regime, expected to take effect in January, offers different benefits across the business landscape. For corporates, it means reduced compliance complexity and a lighter tax load. For SMEs, it offers much-needed relief and liquidity for reinvestment. For consumers, it presents the possibility of more competitive pricing over time. Femi Egbesola, President of the Association of Small Business Owners of Nigeria (ASBON), echoed these sentiments, warning that without addressing arbitrary levies and informal taxation—especially at the local government level—the intended benefits of the reforms may not fully materialize for micro and nano businesses, which constitute the backbone of the MSME sector. “Policies must be inclusive. MSMEs can’t just be passive recipients of reform—they must be part of the design and implementation process,” Egbesola advised. As Nigeria advances its tax reform agenda, the expectation is that a more efficient, equitable, and growth-friendly tax system will not only provide relief to businesses but also help rebuild investor confidence and accelerate the country’s journey towards economic diversification. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.