Nigeria’s corporate tax environment is drawing renewed scrutiny as analysts warn that the prevailing 30% company income tax may weigh on the country’s ability to compete for global capital.
Market observers note that the current tax structure places Nigeria above many emerging-market peers, raising questions about its attractiveness to multinational firms evaluating African investment destinations.
They argue that while domestic reforms have improved transparency and regulatory oversight, the corporate tax burden remains a critical factor influencing long-term investment decisions.
Industry experts say foreign investors are increasingly sensitive to jurisdictions with higher operating costs, particularly those driven by taxation. With several economies offering lower corporate tax rates to attract new businesses, Nigeria’s position could limit the inflow of fresh capital unless broader incentives offset the higher mandatory levy.
Economists also highlight the rising importance of FDI in supporting Nigeria’s growth objectives, especially at a time when infrastructure development, manufacturing capacity, and technology adoption require significant external funding.
A competitive tax regime, they argue, is essential to aligning investment conditions with the country’s medium-term economic ambitions.
Despite the concerns, analysts acknowledge that Nigeria continues to offer a large consumer market and expanding private-sector opportunities.
However, they caution that the high tax rate may compel some prospective investors to prioritise other African markets with more favourable fiscal terms.
Policy watchers expect the ongoing debate to intensify as the government seeks to boost investment inflows and strengthen the non-oil economy.
Many believe a review of the current tax framework could become part of wider discussions aimed at enhancing Nigeria’s competitiveness in the global investment landscape.