blogs

Even Small Businesses Need An Accounting Software

Why Your Business Needs An Accounting Software Research has shown that over 98 percent of Nigeria’s Micro and small scale businesses do not have formal or what we may call a standard book-keeping culture. While most of ... Read More

Solving Your Business Risks

    Businesses face a myriad of challenges that leave them vulnerable to many forms of risk, including regulatory, reputational and litigation, among others. Evolving legal and ethical obligations pose constant challenges to a business and often in-house counsel are on the front ... Read More

Demystifying the International Financial Reporting Standards.

IFRS Immersion Course For Accountants, Auditors & Finance Personnel This 3-Day IFRS immersion training has been designed to teach in-depth knowledge about IFRS with practical application examples.The training sessions will be led by subject-matter professionals with deep IFRS and Nigeria Statement of Accounting Standards experience. Attendance at this programme will provide the participants opportunity to discuss practical issues on application of IFRS and to ensure effective compliance with IFRS. Certificates will be awarded to all ... Read More

PML ADVISORY PARTNERS WITH E-TRENDS TECHNOLOGY INDIA

   Indian based accounting solution company, E-trends Technologies India has  signed a partnership deal with PML  advisory limited to provide solution to the  mounting challenges  of managing , controlling and reporting internal  audit  system that are confronting emerging and ... Read More

Your SME Needs a Financial Plan

    A financial plan is a forecast of future performance for a business, usually prepared using spreadsheet software. Small businesses can benefit greatly from taking the time to do a financial plan at least annually. The plan helps a small ... Read More

Seven Steps To An Effective Risk Based Audit

  An important in the internal auditor's toolbox, risk-based auditing effectively serves the three primary roles of internal auditing — to provide feedback on the adequacy of internal control, to provide a source of information for monitoring risk, and to provide identification and communication ... Read More

Your Company Needs A Better Risk Management Approach

  The world has learned the hard way over the past year that most companies have done a bad job of managing risk. And not only banks and investment firms. Accenture’s Global Risk Management Study  found that executives at business enterprises across a wide range of industries believe overwhelmingly that they ... Read More

External Auditors: An Ally or Opponent?

  External Auditors: An Ally or Opponent? Unfortunately, the finance departments of many companies mistakenly believe that having an external audit annually is part of their internal control structure they can rely on to ensure their financial statements are accurate and their internal controls are sound.   While the objective of an external audit ... Read More

What are the benefits of having professional financial advice?

Professional financial advisors have years of training, tools, and experience working with many different clients and situations. Because of their broad experience, professional advisors can quickly assess your needs and offer advice that reflects the best practices of the financial industry and is appropriate for your particular needs. In addition, and ... Read More

NEWS: “IFRS will promote corporate governance” – FRC

The Financial Reporting Council of Nigeria (FRCN) has said the convergence to the International Financial Reporting Standards (IFRS) by Nigeria will promote corporate governance in the country. This, according to the Council, will also enhance foreign direct investments and national economic growth. Chairman, Governing Board of the FRCN, Mrs. Maryam Ladi Ibrahim ... Read More

Even Small Businesses Need An Accounting Software

The Nigeria Tax Act (NTA) 2025 and the Nigeria Tax Administration Act (NTAA) 2025 have introduced a unified framework that fundamentally changes how taxes are managed and distributed. These reforms prioritize digital transparency and a clearer "Social Contract" between the government and taxpayer
General Provisions (The Legal Foundation)

  1. The General Provisions act as the "constitution" of the new tax era, simplifying the rules and repealing over a dozen legacy laws (like CITA, PITA, and VAT Act) to create one unified code.
    Taxpayer Identification Number (Tax ID): Your NIN (for individuals) or RC Number (for businesses) is now your official Tax ID. You cannot operate any financial account (bank, insurance, or stockbroking) without a verified Tax ID.
    Wholly & Exclusively: Section 20 of the NTA removes the subjective "necessarily" and "reasonably" requirements for business deductions. If an expense was incurred wholly and exclusively for the business, it is deductible.
    Small Company Shield: Companies with an annual turnover of ₦50 million or less are officially subject to a 0% Company Income Tax (CIT) rate.
    Individual Relief: The first ₦800,000 of annual income is now fully tax-exempt for every resident individual.
  2. Advance Tax Ruling (Certainty for Businesses)
    For the first time, Nigeria has a formal statutory mechanism for Advance Rulings, allowing taxpayers to get a binding opinion from the Nigeria Revenue Service (NRS) before entering a transaction.
    21-Day Response: Once you apply, the NRS is required to issue a ruling within 21 days or provide a written reason why it cannot.
    Binding Nature: A ruling is binding on the NRS for the specific taxpayer and transaction it covers, as long as the facts provided were accurate.
    Validity: The ruling becomes void if the underlying law is changed by the National Assembly or if a court changes the legal interpretation of that law.
    Purpose: This eliminates the "fear of the unknown" for complex mergers, acquisitions, or international investments.
  3. VAT Sharing: The New Formula
    One of the most significant changes for 2026 is the redistribution of Value Added Tax revenue to strengthen states and local governments.
    Level of Government / Old Formula New Formula (2026)
    Federal Government 15% 10%
    State Governments 50% 55% Local Governments 35% 35%
    The FCT Inclusion: The Federal Capital Territory (Abuja) receives its VAT allocation directly from the states' 55% share, rather than being tucked under the Federal Government’s portion.
    Lagos Dominance: In the first full month of the new formula (January 2026), Lagos generated over 50% of the national VAT pool , highlighting the shift toward rewarding states that generate high commercial activity.
  4. General & Administrative Provisions (NTAA)
    The NTAA 2025 provides the "operational manual" for how taxes are collected and enforced.
    Electronic Fiscal System (EFS): All taxable businesses are required to use the EFS to record and report sales in real-time. This reduces human interference and automated "best of judgment" assessments.
    National Single Window Portal: The NRS now manages a unified digital platform for all import/export transactions, harmonizing fee payments and data sharing between Customs and Tax authorities.
    The 90-Day Refund Rule: Tax refunds must be processed within 90 days (or 30 days for VAT). If the NRS is late, they must pay you interest at the prevailing CBN rate .
    Enforcement Powers: The NRS has exclusive authority to distrain (seize) assets of defaulting taxpayers. While they can seize movable goods immediately, seizing land or buildings still requires a court order.
https://youtu.be/x-lS3GQANFI

JOIN OUR FREE NEWSLETTER