₦airaland Forum

What are the implications of this? I thought Oyedele said that even the President can't suspend implemention of the law.

mikeapollo:
https://dailytrust.com/fg-pauses-on-tax-laws-guidelines-cites-uncertainty/?noamp=available

FG Pauses On Tax Laws Guidelines, Cites Uncertainty

Moniepoint, other Nigerian banks to charge 7.5% VAT on transfers, USSD transactions

https://dailypost.ng/2026/01/14/moniepoint-other-nigerian-banks-to-charge-7-5-vat-on-transfers-ussd-transactions/

This thing gets as e bi oo. Suppose I buy something from a seller who includes 7.5% Vat. If I transfer the payment I will then get charged 7.5% Vat again. I am effectively paying 15% Vat on the transaction. I think people will have to start carrying cash again.

I think if the CBN will put the forbearance issue aside banks like Zenith that paid disappointing interim dividend should pay good final dividend. I think FBN will also do better since Ote$ did address the poor dividend issue during the AGM. Time will tell.

Agbalowomeri:
You no talk 1B sef
Na so most bidders go queue up at the upper bound price unlike the less liquid stocks. People will only buy now for dividend.
What do you think they will pay as final dividend? I think most will just repeat the same thing they paid for last year

Another thing for me with the banks is liquidity. I could sell or buy N50m worth of shares in 2 minutes.

nosa2:
Hehe. If it is obvious then its probably not as juicy. Shifted from GTCO to Zenith and Ecobank. Got out of GTCO at about 70+ sha and shifted focus to Zenith. The disparity in price for the two banks is illogical. Either GTCO is over-priced or Zenith is under-priced.

I expect GTCO to hover while Zenith catches up. We should eventually see Zenith trade at about N5 below GTCO

Obviously my opinion changes once full year and or Q1 results come out

I recall when he was pushing GTCO and many were not interested. He must have cashed out big when it hit N100.

Agbalowomeri:
Oga Nosa you really rate these banks o

So they want the world to believe that KPMG didn't know what they were talking about before and it is only now they are seeking for clarification?

pluto09:
https://www.thecable.ng/kpmg-nrs-meet-after-debate-over-new-tax-laws/

Way to go, everything should not be fight....

https://www.youtube.com/watch?v=llJVgRBj01U?si=5liJ5fkYyegIRwa6

I am heavily weighed on banks. Hope CBN allows them to breathe.

awesomeJ:
I don't know o.

FBN is the only bank in my portfolio. except you count the miniscule 400 units of ZENITH

I went to buy cement and it is up N600 per bag since January 1st. They said it is because of tax. I will pay someone else's tax and then pay mine.

Bizibi:
na that one dey pain me,we won't get shishi. They didn't even disappoint to annoy someone today with the 40bn CCTV camera on one bridge,now in Abuja some landlords are transferring the burden to tenants,the tenants will pay the tax on the rents.

When will the banks move?

awesomeJ:
Market is on track for another ATH in both ASI and number of deals.

ASI has been setting new ATH every day of this new year.

Deals are on track to hit 60k, maybe even 70k today!

They are clearly now taking any criticism of the tax law almost personally. I guess they will keep depending it until the pond dries and we can see who has been swimming naked.

Yoursfaithful:
This guy need brain reset medicine aswear

Well I'm not surprised cos once you start working for a stupid government you become one

𝐑𝐞𝐬𝐩𝐨𝐧𝐬𝐞 𝐭𝐨 𝐊𝐏𝐌𝐆: 𝐎𝐛𝐬𝐞𝐫𝐯𝐚𝐭𝐢𝐨𝐧𝐬 𝐨𝐧 𝐍𝐢𝐠𝐞𝐫𝐢𝐚’𝐬 𝐍𝐞𝐰 𝐓𝐚𝐱 𝐋𝐚𝐰𝐬

---𝘉𝘺 𝘗𝘳𝘦𝘴𝘪𝘥𝘦𝘯𝘵𝘪𝘢𝘭 𝘍𝘪𝘴𝘤𝘢𝘭 𝘗𝘰𝘭𝘪𝘤𝘺 𝘢𝘯𝘥 𝘛𝘢𝘹 𝘙𝘦𝘧𝘰𝘳𝘮𝘴 𝘊𝘰𝘮𝘮𝘪𝘵𝘵𝘦𝘦

We welcome all perspectives that contribute to a shared understanding and successful implementation of the new tax laws. We acknowledge that a few points raised by KPMG are useful, particularly where they relate to implementation risks and clerical or cross-referencing issues. However, the majority of the publication reflected a misunderstanding of the policy intent, a mischaracterisation of deliberate policy choices, and, in several instances, repetitions and presentation of opinion and preferences as facts.

𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐨𝐛𝐬𝐞𝐫𝐯𝐚𝐭𝐢𝐨𝐧𝐬

A significant proportion of the issues described as “errors,” “gaps,” or “omissions” by KPMG are either:

- the firm’s own errors and invalid conclusions,
- issues not properly understood by the firm,
- missed context on broader reforms objectives,
- areas where KPMG prefer different outcomes than the choices deliberately made in the new tax laws, and
- obvious clerical and editorial matters already identified internally.

While it is legitimate to disagree with policy direction, disagreements should not be framed as errors or gaps. KPMG would have been more effective if the firm adopted a similar approach like other professional firms who engaged directly providing the opportunity for clarifications and mutual-learning.

It is equally important to distinguish between policy choices designed to achieve the reform objectives and proposals that merely represent a firm's preference.

𝐏𝐨𝐥𝐢𝐜𝐲 𝐂𝐡𝐨𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐂𝐥𝐚𝐫𝐢𝐭𝐲 𝐨𝐧 𝐑𝐞𝐟𝐨𝐫𝐦𝐬

1. Taxation of Shares and the Stock Market

Contrary to the presumption that the new tax provisions on chargeable gains would trigger a sell-off on the stock market, the fact is that the applicable tax rate on share gains is not a flat 30%. The tax framework is structured from 0% to a maximum of 30%, which is set to reduce to 25%. Furthermore, a significant majority of investors (99%) are entitled to unconditional exemption, with others qualifying subject to reinvestment.

The market's performance, which is at an all-time high with increased investment flow, demonstrates investors understanding that the tax changes will enhance the fundamentals of firms both in terms of profitability and cash flows. The sell-off narrative is unsubstantiated as any disposals in December 2025 would have benefited from the re-investment exemption or enhanced deductions under the new law.

2. Commencement Date and Transition

The suggestion to set the commencement date as the start of an accounting period (e.g., 1 January 2026) takes a narrow view of the complex transition issues. A wholesale reform affects myriad issues beyond the accounting period, spanning multiple periods, different bases of assessment (preceding year, actual year), as well as issues related to audit, deductions, credits, and penalties. Limiting the commencement to a single date for accounting periods would fail to address the intricacies of continuous transactions and other transition matters. KPMG’s proposal is therefore not a “gold standard” to be applied to all new laws as suggested.

3. Indirect Transfer of Shares

The new provision to tax indirect transfer of shares is a policy choice aligned with global best practices and BEPS initiatives. Its objective is to block a long-exploited tax loophole by multinationals and other investors, not to affect competitiveness. This is a common provision in international tax, and the assertion that it may affect the country's economic stability is disingenuous.

4. VAT Exemption on Insurance Premium

KPMG's point regarding a specific VAT exemption on insurance premium is technically unnecessary, as an insurance premium is not a "taxable supply" defined under the Nigeria Tax Act. Insurance relates to risk transfer, not the supply of goods or services subject to VAT. As this has always been the administrative and legal position, a specific amendment for exemption is academic. If it is not broken, don’t fix it.

𝐈𝐬𝐬𝐮𝐞𝐬 𝐑𝐞𝐟𝐥𝐞𝐜𝐭𝐢𝐧𝐠 𝐌𝐢𝐬𝐮𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐁𝐲 𝐊𝐏𝐌𝐆

5. Inclusion of 'Community' in Definition

The concern about the inclusion of “community” in the definition of a ‘person’ but its omission from the charging section does not constitute a gap or ambiguity. In statutory interpretation, definitions provided in the law apply wherever the defined term appears, unless the context requires otherwise. Hence, ‘person’ and ‘taxable person’ are used in the charging section, and both definitions include ‘community.’ This approach is consistent with modern legislative drafting principles, which use comprehensive definitions to streamline operative provisions and avoid redundancy. This is similar to the inclusion of partnerships and executors in the definition but not under the charging section. The use of the word “includes” further signifies that the list of taxable persons is not exhaustive.

6. Joint Revenue Board (JRB) Composition

The composition and mandate of the Joint Revenue Board (JRB) are intentional. Its policy advisory role is specifically to provide a subnational tax and revenue perspective that complements the fiscal policy mandate of the Ministry of Finance. Its membership is appropriately limited to revenue-focused agencies, which is why it is called the Joint Revenue Board. This is a similar composition under which the former JTB operated effectively, and its functions remain consistent with the need for inter-agency coordination.

7. Distinction in Dividend Treatment

KPMG's analysis appears to mix the distinction between a foreign-controlled company and a foreign operation of a Nigerian company. Dividends distributed by a foreign company cannot be "franked" since no Nigerian Withholding Tax (WHT) would have been deducted. Section 162(1)(s) confers exemption on dividend, interest, rent, or royalty derived from outside Nigeria and brought into Nigeria through approved channels. The choice to treat dividends distributed by Nigerian companies differently from foreign companies is a deliberate policy choice, as they are fundamentally different for tax purposes.

8. Non-Resident Registration and Final Tax

The view that a payment subject to deduction as final tax should automatically exempt the non-resident recipient from tax registration misses a critical distinction. While the law conditionally exempts passive income from registration, the deduction of tax on non-passive income is not synonymous with an exemption from registration or filing of returns. The same way that residents are required to file returns on income such as interest (in the case of individuals) and dividend where WHT is final. Returns serve a broader purpose beyond solely generating tax revenue.

𝐊𝐏𝐌𝐆’𝐬 𝐏𝐫𝐨𝐩𝐨𝐬𝐚𝐥𝐬 𝐓𝐡𝐚𝐭 𝐖𝐨𝐮𝐥𝐝 𝐔𝐧𝐝𝐞𝐫𝐦𝐢𝐧𝐞 𝐊𝐞𝐲 𝐑𝐞𝐟𝐨𝐫𝐦 𝐎𝐛𝐣𝐞𝐜𝐭𝐢𝐯𝐞𝐬

9. Tax on Foreign Insurance Premiums

The proposal to exempt foreign insurance companies from tax on premiums from insurance written in Nigeria to deepen penetration, while local insurance companies continue to pay tax, would be detrimental to the domestic insurance sector. This would create an unfair and harmful competitive disadvantage for local firms in their own market. The current policy is designed to protect and promote local industry and ensure a level playing field.

10. Parallel Market Forex Deduction

The new law disallows tax deduction for the difference where a business buys foreign exchange in the parallel market at a premium over the official rate. This is a critical fiscal policy choice designed to complement monetary policy, strengthen, and stabilise the Naira. By removing the tax subsidy for patronage of the parallel market, the policy aims to reduce incentives for round-tripping and redirect legitimate FX demands to the official market. This is policy congruence, not an error.

11. VAT Compliance-Linked Deductibility

The non-tax deduction for taxable transactions on which VAT has not been charged is a necessary anti-avoidance measure. It removes the advantage that some taxpayers previously enjoyed by patronising suppliers who evade VAT. This is a matter of fairness and is squarely within the control of a business to manage, especially given the provision for the self-charge of VAT. It also ensures that responsible businesses play their part in promoting voluntary tax compliance across the ecosystem.

12. Progressive Personal Income Tax

While KPMG acknowledges the reform objective of fairness and progressivity, the firm disagrees with a top marginal tax rate of 25% for the highest earners. In reality, the effective tax rate can be as low as 22% for an individual earning billions a year simply by contributing 10% to pension. This rate is competitive when compared to many other countries, including Angola 25%, Egypt 27.5%, Ghana 35%, Kenya 35%, the U.S. (Federal) 37%, South Africa 45%, and the U.K. 45%. So, the rate is not “oppressive” or one that will negatively affect economic growth as claimed, rather it ensures progressivity without compromising competitiveness. From a broader policy objective perspective, the increase in top marginal rate for high income earners and the reduction in corporate tax rate is designed to address the existing higher tax burden associated with business formalisation.

𝐅𝐚𝐥𝐬𝐞 𝐈𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧 𝐚𝐧𝐝 𝐅𝐚𝐜𝐭𝐮𝐚𝐥 𝐄𝐫𝐫𝐨𝐫 𝐛𝐲 𝐊𝐏𝐌𝐆

13. Police Trust Fund

The Police Trust Fund was signed into law on May 24, 2019, with a six-year lifespan under section 2(2) of the Act, which ended in June 2025. Therefore, KPMG's point that the new tax law should be amended to repeal the taxing section of the Police Trust Fund Act is needless, as the provision no longer exists.

14. Small Company Verification

The analysis concerning the tax exemptions for small companies affecting large companies' obligations is not a new issue or an inconsistency in the new law. The small business threshold was introduced via the Finance Act 2021. This issue pre-dates the current tax laws and should not be presented as an error or omission simply by virtue of a higher tax exemption threshold under the new law.

𝐖𝐡𝐚𝐭 𝐊𝐏𝐌𝐆 𝐋𝐞𝐟𝐭 𝐎𝐮𝐭

While acknowledging the objectives of the reform, KPMG could have highlighted the major structural improvements under the new laws, including:
- simplification and tax harmonisation,
- the scope for reduction in corporate tax rate from 30% to 25%,
- expanded input VAT credits for businesses,
- tax exemption for low-income earners and small businesses,
- elimination of minimum tax on turnover and capital, and
- improved investment incentives for priority sectors.

A balanced assessment would have recognised these transformative elements, among others.

𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧 𝐚𝐧𝐝 𝐖𝐚𝐲 𝐅𝐨𝐫𝐰𝐚𝐫𝐝

The tax reform is the result of an extensive consultation with various stakeholder groups in addition to the legislative process that included widely publicised public hearings, avenues intended for all stakeholders including international firms to provide technical expertise at the formative stage.

In any comprehensive overhaul of a nation’s tax framework, clerical inconsistencies or cross-referencing gaps may occur, and these are already being identified within the government. The tax reform represents a bold step toward a self-sustaining and competitive Nigeria.

An effective review needs to connect identified gaps to clear policy intents and the reality of modern-day tax systems within the context of economic development and global competitiveness.

At this stage, the effectiveness of the tax law depends on administrative guidance, clarifications from the tax authority, and regulations to complement precise statutory provisions where necessary pending future amendments.

We urge all stakeholders to pivot from a static critique to a dynamic engagement model, which allows for clarifications and a productive partnership in the implementation of the new

Ah. I thought CBN said those two banks can appeal their revocation. Why is CBN now putting obstacles on their way?

pluto09:
https://www.premiumtimesng.com/news/top-news/847899-licence-revocation-cbn-ndic-oppose-hearing-of-aso-savings-union-homes-suit.html

Saudi to open financial market to all foreign investors from Feb 1

https://www.khaleejtimes.com/world/gulf/saudi-to-open-financial-market-to-all-foreign-investors-from-feb-1

Somewhere to go and escape the CGT?

I take it that you either don't know what you are talking about, or you don't want engage in a meaningful conversation. Either way is toxic for me so I close here.

awesomeJ:
Gemini is free to use on Google

Please explain ro me what market inefficiency is and if fixing conditions guiding price movement may not be one of its causes.

awesomeJ:
You're commenting without context.

A market that leaves a stock stuck at an unrealistic price level for a whole year is inefficient, that's what you need to first understand, then you can comment.

To appreciate the impact of the 100k trade rule please compare the daily price movement of SEPLAT on the NGX and LSE.

awesomeJ:
I don't think you understand the root cause.

Airtel isn't the stock with the highest price on the exchange.

It's a problem that affected DANGCEM in 2024 as well.

Good morning y'all. Please can we discuss how one can keep one's trading records for the purpose of tax filings. It will help if there are templates you could share.

Good that Oando is gaining again. Maybe some familiar voices will return to NSEMPA.

PZ is for the contrarians. Everyone says the Q2 results were disappointing yet its is gaining 10%.

KarlTom:
PZ

Yes you did. Sorry I didn't see that. Well here's a video I saw recently on dividend paying stocks. I am sure you can find one on growth stocks.



https://www.youtube.com/watch?v=E19IHHEoako?si=Akgbb_9gWMQUgbL3

ManAdii:
I stated my goal already

You need to define your objective first . Why are you doing what you are doing?

ManAdii:
The below is currently my portfolio on bamboo. I started investing last year just buying random stocks and all...

Experts in the house, I need insights; I want to optimize and trim down the portfolio to like 15. I know I am not really getting things right as I just buy stocks randomly. Gurus, which ones should I let go and which one not here should I add?

My goal is dividends and growth for long term.

1. Zenith Bank
2. GTCO (Guaranty Trust Holding Company)
3. Access Holdings
4. United Bank for Africa (UBA)
5. Fidelity Bank
6. Sterling Bank
7. Jaiz Bank
8. United Capital (UCAP)
9. AIICO Insurance
10. Unilever Nigeria
11. Cadbury Nigeria
12. Presco
13. Okomu Oil
14. Champion Breweries
15. Ellah Lakes
16. Oando
17. Aradel Holdings
18. Lafarge Africa (WAPCO)
19. UPDC REIT
20. Nigeria Infrastructure Debt Fund (NIDF)
21. Japaul Gold
22. Chams

I guess you have to start somewhere.

nosa2:
N1b is less than $1m oh

Atiku can't run for VP again having run for, and held the VP office twice.

awesomeJ:
No nah. I only say things I mean.

It's just a simple maths I saw.

If Atiku could possibly agree to vice Obi, then he would win the north for him.

Such a development would rekindle the obedient movement so strongly, even Tinubu might become scared.

But if it's reversed (Obi runs as vice) then it'll just be like 2019 imo


I believe you heard the news that they're now both in ADC. Obi left LP today.

I'm not one to play unnecessary games. Nothing like wanting to hear your mouth.

It is only Alhaji that I believe fits your point. But since he is the richest person we could say that's the way the rich should behave.

HesInMe:
Lol. The rich don't care about the stupid ethnicity and religion they use to divide and conquer the poor. Only cold hold $$$ matters.

An unusual South to North switch

emmanuelewumi:
Meet the new owners of Geregu.


Hopefully Otedola should be able to give new jobs at First Bank to the directors that resigned with him

Chai! Imagine holding Geregu now and you really want to sell.

Looks like GTCO is firing it's engines.

nosa2:
I agree but I don't think we are looking at the same name. I'll post after I finish buying today

FBNHCO is different from Geregu though. The former is in a strongly regulated sector that contains many competing pears. For example, you can't pump FBNHCO to N200 while GTCO is below N100.

pluto09:
Anyone that has FBNHCO should hold it tight for now. Ote can pump anything!

It is probably already priced in. Remember that he bought Firstholdco recently at around N31. He might fund the remaining capitalization requirements of the bank though.

pluto09:
Anyone that has FBNHCO should hold it tight for now. Ote can pump anything!

I de salute Oga Nosa. Vitafoam hasn't even moved up before it starts coming down. Probably their March 2026 payment date is the problem.

nosa2:
Be patient. Gravity is coming for this stock

A friend of mine told me that at a point needed a N1m for a return ticket from Ilorin to Abuja. We are track for what the Air Peace bos was saying.

unite4real:
I agree

But the N1 Million for domestic flights statement is reckless

But if, as he said, out of a ticket of N350k the airline only gets N81k there is definitely a big problem.

unite4real:
The major tax component from the article is the return of the 7.5% vat.

How will this take airfare to N1 Million if not that he wants to cause an economic scare.
The NCAA has refuted the 5% tariff and the issue of bank interest rate has always been there.