Below is a substantially reworked English version that preserves factual accuracy while reshaping structure, narrative flow, and emphasis. It is suitable for international business media, policy audiences, or urban innovation analysis.

From Challenger to Contender: How Busan Entered the Global Smart City Top Tier

As Nigeria’s new tax regime takes effect in January 2026, public debate has largely focused on headline changes. Less discussed, however, are a series of incentives that could materially benefit households, accelerate capital market development, and improve Nigeria's investment attractiveness.

According to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, the reforms introduce one of the most investor-friendly tax frameworks in the region. “All investors are tax exempt—99 percent unconditionally, 1 percent conditionally,” he said, emphasising the reforms’ role in unlocking capital market growth. He also noted that Nigeria will have lower major tax rates than Kenya, Ghana, and South Africa under the new regime.

Capital Markets: Structural Tailwinds

A core feature of the reform is the overhaul of Capital Gains Tax (CGT). Retail investors, pension funds, REITs, reinvestments, securities lending, corporate reorganisations, and mergers and acquisitions will all benefit from CGT exemptions. The framework also allows deductions for capital losses and transaction costs, removes withholding tax on bonus shares, and levels the playing field between listed and unlisted entities, including those operating in free zones.

Additional measures include stamp duty exemptions on stock and share transfers, tax exemption for state government bonds, and treating withholding tax as a final tax for foreign investors’ dividends and interest income, alongside removing the Tax Identification Number (TIN) requirement for foreign investors to ease entry.

Lower Costs, Fewer Taxes, Clearer Rules

For businesses, the reforms reduce friction and uncertainty. Minimum tax on turnover or capital is eliminated, while the Companies Income Tax rate is set to fall from 30 percent to 25 percent. Input VAT credits will apply to assets and overheads, improving cash flow.

The reform also consolidates over 60 taxes and levies into fewer than 10, harmonising earmarked levies such as TET, NITDA, and NASENI. A newly introduced Tax Ombud will act as an independent arbiter, offering protection against arbitrary assessments and strengthening taxpayer confidence.

Household Relief and Inclusion

Households are explicitly included in the reform design. Measures include income tax exemptions for low earners, reduced rates for the middle class, VAT zero-rating and exemptions, fuel tax suspensions, and targeted reliefs such as transport subsidies and food import tax waivers. The framework also supports small businesses, startups, remote work, and investment income through simplified regimes and targeted tax breaks.

President Bola Tinubu has framed the reform as base-broadening rather than burden-raising, noting that Nigeria's tax-to-GDP ratio has already risen to 13.5 percent, with further gains expected once the law takes effect.