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If you run a business in Nigeria, you need to know how new and upcoming regulatory changes will affect it. Specifically, you’ll want to know how to respond to them, so you remain on the right side of the law while avoiding adverse effects on your enterprise. This article covers some new and important business rules and guidelines, and steps you can take in the wake of their introduction.
The Nigeria Data Protection Act
In 2023, the Nigeria Data Protection Act was passed into law. This piece of regulation is intended to strengthen and clarify the Nigeria Data Protection Regulation, which was adopted four years earlier. The general aim of the act, as was the case with the preceding NDPR, is to safeguard the data of Nigerian citizens from exploitation by data processors or other relevant actors. A consequence of this law is that there are restrictions on what businesses can do with their customers’ data.What Businesses Should Do
Your business should conduct an internal audit of data handling practices and ensure compliance with the NDPA and NDPR.The Nigerian Communications Commission (NCC) Tariff Simplification Rules
In July 2024, the NCC introduced the Guidance on the Simplification of Tariffs in the Nigerian Communications Sector, which set out new rules for the simplification of telecommunications tariffs. The guidelines are designed to benefit consumers—whether they are individuals or businesses –who have to pay fees for telecom services rendered to them by Mobile Network Operators (MNOs).What Businesses Should Do
Visit the website of your MNO for updates on tariff plans and other relevant information. You can expect to be notified of changes to tariff plans about 30 days before they come into effect, in line with the new rules.Sign up for the Connect Nigeria daily newsletter
Withholding Tax Reforms
A new withholding tax regime, approved in July 2024, is set to be implemented starting in 2025. The regulation stipulates rate reductions and exemption from withholding tax for SMEs that have an annual turnover not exceeding ₦25 million. It also details reduced rates for businesses with low margins, exemptions for manufacturers and producers, and measures to prevent tax evasion and avoidance.What Businesses Should Do
Ascertain your eligibility for exemption from withholding tax under the new rules, and determine how other revisions apply to your business. Implement changes to your tax filing policy accordingly.Electronic Waste Management
Back in 2023, new regulations concerning electronic waste came into effect in Nigeria. The National Environmental (Electrical and Electronic Sector) Regulations, as they are called, make producers of electronic devices and equipment accountable for the end of life of their products. Companies are encouraged to reduce waste, recycle materials, and use eco-friendly disposal processes.What Businesses Should Do
If you are active in the electronics sector, you will need to review your product lifecycle management plan and avoid practices that pollute the environment.Disclosure of Foreign Currency Holdings
The Central Bank of Nigeria (CBN) recently launched the Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme. This initiative provides a 9-month window for concerns that possess undisclosed dollar holdings to report and formalize them. Concerns affected are allowed to deposit their holdings in a domiciliary account.What Businesses Should Do
If you have undisclosed foreign currency holdings, you are advised to deposit them in a domiciliary account at a registered bank.Minimum Wage and Compensation
In 2024, the federal government increased Nigeria’s minimum wage from ₦30,000 to ₦70,000. Organizations in the private and public sectors are now required to ensure that compensation packages reflect the new baseline.What Businesses Should Do
Review and adjust compensation packages to ensure that they are in line with the new minimum wage.Register to attend the CN Business Mixer
Final Words
The changes in business regulations in 2025 will have far-reaching consequences for individual businesses and the Nigerian economy as a whole. It’s important that you are prepared for them. Examine the laws and guidelines that apply to your business, and make sure to comply with them in ways that don’t negatively impact your operations.Got a suggestion? Contact us: editor@connectnigeria.com