The Organised Private Sector of Nigeria (OPSN) has strongly opposed the retroactive application of provisions of the Nigeria Tax Act 2025 to corporate income tax periods that ended before the law came into effect, warning that such a move could undermine investor confidence and create significant disruptions for businesses.
In a public notice issued on June 5, 2026, OPSN described the reported attempt by the Nigeria Revenue Service (NRS) to apply aspects of the new tax regime to accounting periods ending on or before December 31, 2025, as unlawful, unfair, and contrary to established principles of tax administration.
Businesses Raise Concerns Over Tax Certainty
According to OPSN, many companies had already finalized their 2025 financial statements, filed tax returns, completed audits, and concluded commercial transactions under the legal and regulatory framework that existed before the Nigeria Tax Act 2025 came into force.
The private sector body argued that applying new tax provisions retrospectively would violate fundamental principles of tax law, including legitimate expectation, legal certainty, and the doctrine against retroactive taxation.
The group warned that such actions could expose businesses to unexpected tax liabilities, increase compliance costs, trigger disputes during tax audits, and create uncertainty for investors operating in Nigeria.
Call for Immediate Reversal
OPSN urged the NRS to immediately withdraw any assessments or directives seeking to apply the new tax law to previously closed accounting periods.
The organization also called for the restoration of the 2025 fiscal year to the tax framework that was in force during that period and requested an official public circular confirming that corporate income tax returns filed in 2026 for 2025 accounting periods would be assessed under the previous tax regime.
In addition, the group demanded the suspension of any penalties, sanctions, or enforcement actions arising from the disputed interpretation of the law until the matter is resolved.
Support for Reform, But Not Retrospective Enforcement
While reiterating its support for ongoing tax reforms aimed at improving revenue generation and simplifying tax administration, OPSN stressed that reforms must be implemented in a manner consistent with the rule of law and international best practices.
The organization noted that businesses had made investment decisions, entered into contracts, prepared financial projections, and obtained audit opinions based on the tax rules that were applicable during the 2025 financial year.
According to OPSN, retrospective application of the new law risks eroding confidence in Nigeria’s business environment at a time when the country is seeking to attract domestic and foreign investment.
The statement was endorsed by key leaders representing major private sector associations, including Segun Ajayi-Kadir of the Manufacturers Association of Nigeria (MAN), Sola Obadimu of the Nigerian Association of Chambers of Commerce Industry Mines and Agriculture (NACCIMA), Adewale Oyerinde of the Nigeria Employers’ Consultative Association (NECA), and Rhoda Ogun of the Nigerian Association of Small and Medium Enterprises.
The development sets the stage for a potential dispute between tax authorities and the organized private sector over the interpretation and implementation of one of Nigeria’s most significant tax reforms in recent years.
