Event Summary
The Nigeria Tax Act and the Nigeria Tax Administration Act (NTAA), coming into force in January 2026, introduce significant new administrative, fiscal, and legal obligations for nonprofit organisations, as outlined in detailed civil society analysis published in November 2025. While nonprofits remain exempt from income tax on mission-related revenue, the NTAA shifts the compliance regime toward mandatory annual filing for all entities, strict record-keeping, expanded VAT obligations, and far-reaching enforcement powers.
Key new burdens include compulsory self-assessment returns (Sec. 11), penalties for non-registration (Sec. 100), “deemed profit” assessment risks when records are considered insufficient (Sec. 38), 7.5% VAT reverse charge on digital imports, and criminal liability for trustees for administrative offenses (Sec. 126).
CSOs warn that these requirements disproportionately affect small and community-based organisations, risk driving many into informal status, and may enable selective enforcement (“lawfare”) against advocacy actors. The measures represent a substantial deterioration in the enabling environment, particularly concerning access to resources, freedom of association, and the right to operate without undue interference.