Report Warns Nigeria's New Tax Act 2025 Could Harm Business Competitiveness and Investor Confidence

A report by New Assess Alliance Economic Research Ethics Ltd GTE raises concerns over Nigeria's Tax Act 2025, signed into law in June 2025 and set for implementation in January 2026. The Act aims to reform the country's tax system but is criticized for potentially eroding business profits, deterring investors, and weakening Nigeria's competitiveness within Africa.

Key provisions include a significant increase in capital gains tax, alignment of company tax rates, and expansion of taxation on digital assets. The report warns of reduced returns for investors and increased administrative costs for businesses, potentially driving investors towards more favorable business environments in competing countries like Ghana, Rwanda, and Ethiopia.