Nigeria’s tax reforms are reshaping investment decisions as the 2025 Nigeria Tax Act (NTA) abolishes the long-standing initial allowance on capital expenditure, removing the upfront tax relief companies typically enjoyed in their first year of major investment.
For new investors, especially those entering capital-intensive sectors, the change means higher early-stage tax liabilities and tighter cash flow at the point of entry.
“This reform does not exactly eliminate capital allowances in practice; what it removes is the lump-sum benefit i
