By Funmilola Gboteku
Dr Tunde Lemo, Chairman, Titan Trust Bank, has urged fintech leaders to prioritise tax compliance and governance as Nigeria rolls out major reforms aimed at clarifying and unifying the tax landscape.
Lemo said this during a webinar organised by FinTech Association of Nigeria (FintechNGR) on Tuesday.
The theme of the webinar was ‘Fintech in Nigeria 2026: Navigating the New Tax Regime’.
Lemo said the new tax law condensed about 70 fragmented tax legislations into four major laws to promote clarity and efficiency.
He listed them as the Nigerian Tax Act, the Nigerian Tax Administration Act, the Nigerian Revenue Services Act and the Joint Revenue Board Act.
He explained that the reforms would significantly affect fintech companies, especially in the area of capital gains tax.
“We are now seeing a revised tax rate of 30 per cent for companies on chargeable income and a revised exemption threshold for sale of shares,” he said.
He noted that a new development levy of four per cent replaced education tax and other previous levies.
The bank chairman added that to prevent tax avoidance, a minimum effective tax rate of 15 per cent was introduced.
He highlighted that Value Added Tax (VAT) compliance became mandatory for expense deductions and capital allowance claims.
Lemo said anti-tax avoidance rules would increase tax liabilities where a foreign subsidiary’s tax rate was below 15 per cent or where dividends are deemed distributable.
He explained that new reporting requirements, updated stamp duties provisions and imputed tax deductions formed part of the reforms.
According to him, tax oversight and risk management should now concern company leadership and executive management.
“We have to establish clear tax strategies and align them with our business objectives,” the chairman said.
He noted that leadership teams needed to regularly review tax policies, exposures and compliance status to avoid regulatory shocks.
He explained that strong internal controls, transparent reporting and continuous training on emerging tax risks were critical.
Lemo highlighted that sound governance was particularly important in emerging areas such as crypto assets, peer-to-peer lending and digital banking.
He said company leadership had to provide direction in regulatory engagement and maintain open relationships with policymakers to build trust.
“We have to engage constructively with policymakers to help shape favourable regulations and support long-term growth,” Lemo noted.
He noted that the reforms also presented opportunities for fintech firms.
The chairman explained that companies could leverage economic development incentives, invest in tax-exempt instruments such as state bonds and apply for VAT rulings from the Nigerian Revenue Service, which was expected to respond within 30 days.
He added that fintech firms could approach the tax ombudsman in cases of disputes with tax authorities.
However, he highlighted challenges in the foreign exchange area, especially where transactions conducted above official rates might not be tax deductible.
Lemo noted that there was ambiguity around new reporting requirements, particularly on the nature of customer transactions to be reported.
He advised fintech operators to conduct detailed impact assessments, review past transactions for compliance gaps and assess financial and reputational risks.
“Tax is now at the centre of our strategic actions to avoid profit depletion,” he said.
In his welcome address, President of the FinTech Association of Nigeria, Dr Stanley Jacob, said the theme of the webinar was carefully chosen because taxation dominated business discussions.
He noted that Nigeria’s tax landscape was undergoing its most significant structural reform in a generation.
“We are confronting a subject that historically made many founders and innovators deeply uncomfortable, and that theme is taxation,” he said.
Jacob explained that the era of operating in grey areas was ending, as the new regime demanded clarity, competence and compliance.
He noted that even top political leaders misquoted aspects of the reforms, which showed the need for proper understanding.
Jacob highlighted that fintech firms operated at the intersection of technology, financial services and marketplaces, often across multiple jurisdictions.
He explained that this exposed them to VAT on digital services, cybersecurity levies, withholding taxes and transfer pricing rules.
“If we get it wrong, it is not just a regulatory inconvenience. It is a risk that could wipe out key players and even an entire ecosystem,” he said.
Jacob said tax knowledge gave startups and investors a competitive advantage.
He noted that fintechs that built tax-efficient structures from the beginning and factored tax planning into their fundraising models would be stronger.
He warned that discovering tax exposure during due diligence or regulatory audits could come at a heavy cost.
Jacob explained that the association was established to serve as a bridge between innovators, regulators and policymakers.
He noted that collaboration and open dialogue would determine the maturity and long-term credibility of Nigeria’s fintech ecosystem.
“In 2026, knowledge of the tax environment is foundational and very important to our business,” he said. (NAN)(www.nannews.ng)
Edited by Christiana Fadare
