Lagos: Dr Tunde Lemo, Chairman of Titan Trust Bank, has urged fintech leaders to prioritize tax compliance and governance as Nigeria rolls out major reforms aimed at clarifying and unifying the tax landscape. Lemo made this call during a webinar organized by the FinTech Association of Nigeria (FintechNGR).
According to News Agency of Nigeria, the theme of the webinar was ‘Fintech in Nigeria 2026: Navigating the New Tax Regime.’ Lemo outlined that the new tax law consolidates approximately 70 fragmented tax legislations into four major laws to enhance clarity and efficiency. These include the Nigerian Tax Act, the Nigerian Tax Administration Act, the Nigerian Revenue Services Act, and the Joint Revenue Board Act. He explained that these reforms would significantly impact fintech companies, particularly regarding capital gains tax.
Lemo revealed a revised tax rate of 30% for companies on chargeable income, along with a revised exemption threshold for the sale of shares. He noted that a new development levy of 4% has replaced education tax and other previous levies. To combat tax avoidance, a minimum effective tax rate of 15% has also been introduced. VAT compliance has become mandatory for expense deductions and capital allowance claims.
He further highlighted that anti-tax avoidance rules would increase tax liabilities where a foreign subsidiary’s tax rate is below 15% or where dividends are deemed distributable. New reporting requirements, updated stamp duties provisions, and imputed tax deductions are part of the reforms. Lemo stressed that tax oversight and risk management should now be a concern for company leadership and executive management.
In his welcome address, Dr Stanley Jacob, President of the FinTech Association of Nigeria, emphasized the importance of the webinar’s theme, noting that taxation now dominates business discussions. He pointed out that Nigeria’s tax landscape is undergoing its most significant structural reform in a generation, urging fintech firms to confront the challenges head-on.
Jacob explained that fintech companies operate at the intersection of technology, financial services, and marketplaces, exposing them to VAT on digital services, cybersecurity levies, withholding taxes, and transfer pricing rules. He warned that getting it wrong could result in significant risks for the ecosystem. Jacob concluded by stressing the importance of collaboration and open dialogue to ensure the maturity and credibility of Nigeria’s fintech ecosystem.