New Tax Laws Begin, But KPMG Warns of Gaps

Nigeria’s new tax framework moved from discussion to daily reality from January 1, 2026. That means companies are no longer preparing “in theory”.

They now have to apply the rules in real transactions, how they price goods and services, how they issue invoices and receipts, how they treat payroll items, and how they plan monthly and annual tax filings.

For many businesses, the first two to six weeks after any major tax change is the most stressful period, because internal processes and staff habits often lag behind the new requirements.

For SMEs, the change can be even sharper. Many smaller firms do not have in-house tax teams, so they depend on accountants, consultants, or informal routines. Once a law becomes active, errors can become costly quickly,especially where penalties, interest, or audit exposure may apply.

Why KPMG is raising a red flag

KPMG has warned that parts of the new tax rules appear to contain gaps and inconsistencies. The core risk is not just “confusion”.

The bigger risk is uneven interpretation. If businesses interpret a provision one way, and a regulator later interprets it another way, that can create disputes, delayed approvals, back-and-forth compliance demands, and unexpected costs. In a tight economy, even small tax uncertainty can slow down investment decisions, hiring, and expansion plans.

What businesses should do now

The most practical response is structured compliance. Businesses should review which parts of their operations are affected, update templates and workflows, and train staff who handle invoices, payroll, and reporting.

Where grey areas remain, companies should document their assumptions clearly and keep strong records. In the first quarter of a new tax regime, the winners are usually not the biggest firms, but the firms that are organised and consistent.