Formalise Now, Pay Later: Oyedele’s Pitch to Nigerian Entrepreneurs
The Big Picture: Nigeria’s tax overhaul isn’t just about plugging revenue gaps, it’s a bid to reward compliance and drag the informal economy into the sunlight. At this week’s WIMBIZ conference, reform czar Taiwo Oyedele laid out why small businesses should register today and worry about corporate tax tomorrow, calling the reforms “people-centric” (Punch) in Nigeria’s New People-First Tax Era.
The Details:
• Companies pulling in ₦100 million or less in annual turnover will face a 0% corporate tax rate.
• The Corporate Affairs Commission will pick up the tab to register 250,000 SMEs free of charge.
• From 1 January 2026, essentials like bottled water, food, education and medicines become VAT-free, easing pressure on household budgets (Ripples Nigeria).
Why It Matters: Nigeria’s informal sector accounts for more than half of GDP. Oyedele argues the carrot, zero tax for start-ups, works better than the stick: “You can’t knock on the door and say, ‘Tax me.’ Let’s first build a business that can pay,” he told attendees. Tax professionals say the move could broaden the base without squeezing struggling enterprises.
The Reaction: Entrepreneurs at WIMBIZ welcomed the relief but peppered officials about paperwork bottlenecks. Meanwhile, larger companies are eyeing the promised input-VAT credits and unified filing rules coming under the new Tax Administration Act.
Around the Tax World
• One Rulebook to Rule Them All: The Nigeria Tax Administration Act 2025 now mandates a single Taxpayer ID for every individual, business, and even government MDAs, creating a seamless audit trail (Guardian).
• FIRS Roadshow Incoming: The tax agency will officially unveil the four Reform Acts on 10 November during a stakeholder session dubbed “Impact of the New Tax Laws” (The Nation).
• Watchdog on Duty: A newly created Office of the Tax Ombud promises to curb harassment and offer redress, especially for women-owned businesses battered by multiple levies (New Telegraph).
Tax Stat of the Day
Prime Number: 250,000
That’s how many SMEs the Corporate Affairs Commission will register for free under the reform plan, removing one of the biggest barriers to going legit (Punch).
Looking Ahead
All eyes turn to Monday’s FIRS unveiling, where officials will spell out the nitty-gritty, think filing deadlines, digital platforms, and enforcement timelines. Expect guidance notes to drop soon after.