Dr. Tunde Lemo, Chairman of Titan Trust Bank, has called on fintech leaders to place tax compliance and strong governance at the core of their operations as Nigeria implements sweeping reforms to unify and clarify its tax landscape.
Lemo delivered the advice during a webinar organized by the FinTech Association of Nigeria (FintechNGR) on Tuesday.
Themed “Fintech in Nigeria 2026: Navigating the New Tax Regime,” the session examined the implications of the country’s most significant tax overhaul in decades.
Lemo explained that the reforms consolidated around 70 fragmented tax laws into four key pieces of legislation: the Nigerian Tax Act, the Nigerian Tax Administration Act, the Nigerian Revenue Service Act, and the Joint Revenue Board Act.
He highlighted that the changes will significantly impact fintech companies, particularly in areas such as 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 the sale of shares,” he said.
Lemo noted other key changes: a new 4 per cent development levy replacing the previous education tax and other levies; a minimum effective tax rate of 15 per cent to curb tax avoidance; mandatory VAT compliance for expense deductions and capital allowance claims; anti-tax avoidance rules that increase liabilities for foreign subsidiaries with tax rates below 15 per cent or deemed distributable dividends; updated stamp duty provisions; and new reporting requirements with imputed tax deductions.
According to him, tax oversight and risk management must now be elevated to the level of company leadership and executive management.
“We have to establish clear tax strategies and align them with our business objectives,” Lemo said.
He stressed the need for leadership teams to regularly review tax policies, exposures, and compliance status to prevent regulatory shocks, while maintaining strong internal controls, transparent reporting, and ongoing training on emerging tax risks.
Lemo emphasized that robust governance is especially critical in emerging fintech areas such as crypto assets, peer-to-peer lending, and digital banking.
Company leaders, he said, must provide strategic direction in regulatory engagement and foster open, constructive relationships with policymakers to build trust and shape favorable regulations.
“We have to engage constructively with policymakers to help shape favorable regulations and support long-term growth,” he added.
Despite the challenges, Lemo pointed out opportunities for fintech firms, including leveraging economic development incentives, investing in tax-exempt instruments such as state bonds, and seeking VAT rulings from the Nigerian Revenue Service (with responses expected within 30 days). He also noted the option to approach the tax ombudsman in cases of disputes.
However, he flagged ongoing challenges, including ambiguity around new reporting requirements for customer transactions and potential non-deductibility of expenses tied to foreign exchange transactions conducted above official rates.
Lemo advised fintech operators to conduct detailed impact assessments, review past transactions for compliance gaps, and evaluate financial and reputational risks.
“Tax is now at the centre of our strategic actions to avoid profit depletion,” he concluded.
In his welcome address, Dr. Stanley Jacob, President of the FinTech Association of Nigeria, explained that the theme was deliberately chosen because taxation has become a dominant issue in business discussions.
He described the reforms as the most significant structural change to Nigeria’s tax system in a generation, ending the era of operating in grey areas and demanding clarity, competence, and full compliance.
Jacob noted that even senior political figures have misquoted aspects of the new regime, underscoring the urgent need for accurate understanding.
He highlighted that fintech firms, operating at the intersection of technology, financial services, and marketplaces—often across multiple jurisdictions—face exposure 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,” Jacob warned.
He stressed that early tax knowledge and planning give startups and investors a competitive edge, while late discovery of exposures during due diligence or audits can be costly.
Jacob reiterated that the association exists to bridge innovators, regulators, and policymakers, with collaboration and open dialogue key to the long-term maturity and credibility of Nigeria’s fintech ecosystem.
“In 2026, knowledge of the tax environment is foundational and very important to our business,” he said.
The webinar reflects the fintech sector’s growing recognition that navigating Nigeria’s evolving tax regime is no longer optional—it is essential for sustainability, growth, and investor confidence in one of Africa’s most dynamic digital economies.
