Lekan Yusuf, Ibadan
IDA hosts policy, tax and SME experts to demystify 2026 tax reforms, urge early preparation
The Ibadan Digital Academy (IDA) at the weekend hosted a high-level national webinar titled “Demystifying the New Tax Act: What Every SME Owner Needs to Know Before 2026,” bringing together tax scholars, policy specialists, and SME development advocates to explain Nigeria’s overhauled tax laws and what they mean for small and medium enterprises.
The session opened with welcome remarks from Engr. Peter Ojo, CEO and Co-Founder of IDA, who said the Academy organised the event after discovering widespread confusion among business owners about the new tax framework scheduled to take effect in January 2026.
> “The business environment in Nigeria is evolving, and recent tax reforms have created a lot of questions for SMEs. Our goal is to ensure entrepreneurs are not left confused, vulnerable, or unprepared,” he said.
He expressed appreciation to Lead City University, SMEDAN, and the panel of speakers for supporting the Academy’s mission to strengthen SME capacity nationwide.
Reforms Not Meant to Punish Businesses — Experts
Delivering the keynote address, Prof. Kabiru Adeyemo, Vice-Chancellor of Lead City University, emphasized that the updated laws do not introduce new taxes but streamline existing ones to make compliance easier and fairer.
> “The new tax regime provides both obligations and opportunities,” he explained. “Compliance is not just a legal requirement; it is a survival strategy for SMEs.”
Key Provisions SMEs Must Understand
Taxation expert Prof. Godwin Emmanuel Oyedokun delivered a technical breakdown of the consolidated Tax Acts, highlighting major changes that reduce the stress of compliance for small businesses. Key provisions include:
Zero Company Income Tax for businesses earning below ₦100 million annually
Expanded VAT exemptions on essential items
Capital Gains Tax reliefs for small enterprises
Revised Personal Income Tax rates, including tax-free earnings up to ₦800,000
Establishment of the Nigerian Revenue Service (NRS) to unify tax administration
Prof. Oyedokun urged SMEs to immediately begin upgrading their accounting systems and adopting digital compliance tools to avoid penalties.
Compliance Steps Before 2026
In the second presentation, UK-based consultant Mr. Osho Ademola Joel outlined practical actions SMEs should take as the implementation date approaches, including migrating to digital bookkeeping, organizing proper documentation, accessing low-interest financing, and leveraging pensions, housing funds, and insurance.
He advised entrepreneurs to seek professional support rather than wait until they face enforcement.
SMEDAN Reaffirms Support for SME Community
Ms. Ojogbede Mabel, Oyo State Manager of SMEDAN, said the agency is actively working with partners to help businesses transition smoothly into the new regime through advisory services, training, and awareness programmes.
Digital Literacy is Now an Economic Imperative — IDA CEO
Later in an interview, Engr. Ojo highlighted the growing relationship between digital literacy and national development, noting that government has now made digital technology a compulsory subject in primary and secondary schools.
He commended initiatives by the Ministry of Communications to expand fibre-optic access across all 774 local government areas, describing the move as essential to preparing Nigerians for a digital economy.
He also hinted that IDA’s next national webinar will focus on the new school curriculum, including robotics, coding, and AI.
Call for Collaboration with Government
Responding to questions, Engr. Ojo said IDA intends to work more closely with government agencies to sensitise the public about the New Tax Act, noting that many citizens mistakenly perceive the reforms as punitive.
> “One of the key takeaways today is that the new tax law is pro-business, not anti-business,” he said. “We plan to take this sensitisation to the grassroots.”
A Timely National Conversation
Closing the event, Mr. Tunji Ogunseinde, Chief Business Development Officer at IDA, praised all speakers and participants, describing the webinar as a crucial step in helping SMEs understand policy and prepare strategically ahead of the 2026 deadline.
The programme ended with an interactive Q&A session where attendees sought guidance on documentation, tax reliefs, and compliance expectations.
IDA reaffirmed its commitment to driving capacity building, digital literacy, and policy awareness among Nigerian entrepreneurs.
