Organised private sector raises concerns over ‘retroactive’ application of Tax Act

The Organised Private Sector of Nigeria (OPSN), an umbrella body for organised businesses, employers, investors and taxpayers, has raised concerns over an alleged attempt by the Nigeria Revenue Service (NRS) to apply provisions of the Nigeria Tax Act, 2025 (NTA) and the Nigeria Tax Administration Act, 2025 (NTAA) to Corporate Income Tax (CIT) returns relating […]

The Organised Private Sector of Nigeria (OPSN), an umbrella body for organised businesses, employers, investors and taxpayers, has raised concerns over an alleged attempt by the Nigeria Revenue Service (NRS) to apply provisions of the Nigeria Tax Act, 2025 (NTA) and the Nigeria Tax Administration Act, 2025 (NTAA) to Corporate Income Tax (CIT) returns relating to business activities, accounting periods, contracts, transactions and financial statements executed and closed in the 2025 fiscal year.

In a public notice published in some national dailies, the OPSN said it considered it necessary to speak out because several channels of constructive engagement had been explored by its members and affected companies, as well as reputable professional firms, yet the responses received from the NRS had not addressed the central legal question.

The notice was signed by the Director-General of MAN, Segun Ajayi-Kadir; Director-General of NACCIMA, Sola Obadimu; Director-General of NECA, Adewale Oyerinde; Director-General of NASME, Eke Ubiji; and Director-General of NASSI, Engr. Ifeanyi Oputa.

The OPSN raised a key question: “Can a new tax law, which commenced on 1 January 2026, be applied backwards to income earned, transactions concluded and accounting periods closed before that commencement date?”

Daily Trust reports that on 26 June 2025, President Bola Tinubu signed the Tax Reform Acts into law. Subsequent communications from the Presidency confirmed that the new tax laws scheduled to commence on 1 January 2026 would proceed as planned. The OPSN noted that the NTA and NTAA are therefore designed to operate prospectively, not retrospectively.

The OPSN said it does not dispute the Year of Assessment (YOA) framework but argued that while it regulates the timing of assessment, it cannot be used to apply new substantive law to income earned before its commencement.

It stressed that a tax authority must administer laws as enacted, adding that unless a statute clearly provides for retroactive application, it cannot impose liabilities or penalties on prior transactions.

The group further warned that the NRS position conflicts with the commencement framework of the new laws and undermines legal certainty, legitimate expectations and the rule of law.

On the way forward, the OPSN called on the NRS to withdraw or suspend any administrative measures applying the NTA/NTAA to 2025 accounting periods and restore the previous CIT framework under CITA.

It also urged the issuance of a public circular confirming that CIT returns for periods ending on or before 31 December 2025 should be computed under existing laws.

The group further called on the Presidency and relevant ministries and agencies to intervene to ensure legal certainty and smooth tax reform implementation.

Efforts to reach the Special Adviser on Media to the NRS Chairman, Dare Adekanbi, were unsuccessful as calls and messages were not returned.