New Tax Act Tightens Intra-group Financing for Businesses, Advisory Firm Warns

Nigerian companies now face a significantly higher bar for structuring and justifying financing arrangements with related entities, as the Nigeria Tax Act 2025 hands tax authorities stronger powers to scrutinise intra-group transactions, tax advisory firm Kreston Pedabo has warned.
In its September 2026 Monthly Newsletter, titled Impact of the Nigeria Tax Act 2025 on Related Party Financing, Pedabo said the Act — signed on 26 June 2025 and effective from 1 January 2026 — marks a major departure from the previous tax framework, widening the range of financing arrangements that can now be examined, including shareholder loans, parent-subsidiary financing, affiliate lending, guarantees and...