Nigeria’s new tax laws, enacted on June 26, 2025, aim to modernize the tax system and boost compliance. The reforms have both positive and negative implications for the ICT and cybersecurity sector.
Positive aspects include:
- Tax relief for low-income tech workers earning ₦800,000 or less annually
- Exemptions for small companies with annual revenue under ₦100 million
- Input VAT recovery and zero-rated essentials for certain services
- Economic Development Incentive (EDI) for companies investing in growth
However, there are also concerns:
- Exclusion of professional services, including IT consulting and software development, from SME reliefs
- New compliance burdens and penalties for small firms
- Development levy may hurt mid-tier players in cybersecurity and software
- Cybersecurity gaps in tax digitization may create national attack surfaces
The reforms also have indirect impacts, such as increased tax clarity for multinationals, potential effects on NGOs and cyber capacity building, and tax residency rules affecting foreign ICT talent mobility.
Overall, the tax reforms are ambitious and necessary, but require targeted adjustments to support innovation, digital resilience, and inclusivity in the ICT and cybersecurity sector.
For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.
