Stakeholders Gather As AUST hosts Workshop on Nigeria’s Tax Reforms
The African University of Science and Technology (AUST), Abuja, has convened key stakeholders, professionals, and partners to enhance understanding of Nigeria’s ongoing tax reforms and their implications for businesses, individuals, and research institutions.
Speaking on behalf of the President of AUST, Prof. Azikiwe Peter Onwualu, the Dean of the Faculty of Engineering, Dr. Vitalis Anye, formally welcomed members of the committee, invited guests, and participants to the workshop. He expressed appreciation for their presence and commended their commitment to learning and constructive engagement on issues critical to national economic development.
Also welcoming participants, the Bursar of AUST, Mr. Ben Okonkwo, provided an overview of the workshop’s objectives and structure. He emphasized the importance of the engagement in supporting stakeholders to navigate Nigeria’s evolving tax landscape before introducing the guest speaker, Dr. Kennedy Iwundu.
The workshop featured an in-depth presentation by Dr. Kennedy Iwundu, who offered expert insights into recent reforms in Nigeria’s tax framework, including the signing of the Nigerian Tax Act and the Nigerian Tax Administration Act. He explained that the reforms consolidate multiple tax laws into a streamlined framework aimed at simplifying tax compliance, promoting economic growth, and improving Nigeria’s overall business environment. The new tax laws are expected to take effect next year.
According to Dr. Iwundu, the reforms adopt a progressive tax approach, reducing the tax burden on low-income earners while increasing contributions from high-net-worth individuals. He highlighted key changes such as the revised small business turnover threshold, now set at ₦100 million, which exempts qualifying companies from company income tax, provided their total assets do not exceed ₦250 million. He further noted the removal of minimum tax requirements for companies declaring losses, while multinational companies and firms with a turnover of ₦50 billion and above will be subject to a minimum effective tax rate of 15 per cent. Professional service providers are excluded from the small business category under the new law.
The discussions also addressed research and development (R&D) incentives, with companies now permitted to deduct five per cent of their turnover for R&D expenditure, replacing the previous ten per cent profit-based limit. Participants were encouraged to support research institutions, including AUST, through eligible R&D contributions. In addition, the development levy was retained due to its critical role in funding education and job creation, with exemptions granted to small companies and non-resident entities.
Dr. Iwundu further explained the new rent relief provisions, which grant tenants a 20 per cent relief on rent paid, subject to a minimum eligibility threshold of ₦700,000. He noted that the law does not extend similar benefits to landlords and removes the former consolidated allowance. He also stated that the first ₦800,000 of income is tax-exempt, alongside reliefs for pension contributions, health insurance, and other statutory deductions.
The workshop also featured presentations by Mr. Mustapha Adegbenga Hammed, Head of Investment, and Ms. Cynthia Musa of the Nigerian University Pension Management Company Limited (NUPEMCO), as well as representatives from Goldenbridge Asset Management and Mainstream Global Insurance Brokers. These sessions provided participants with broader perspectives on pension administration, insurance, investment planning, and compliance under the new tax regime.
The event was brought to a close by Dr. Bosco Okolo-Obi, who delivered the closing remarks and expressed appreciation to all participants, facilitators, and partners for their active participation and support.