Introduction The long-anticipated regulatory change occurred on March 28, 2024. While the new minimum capital requirements for Nigerian banks were expected, the exclusion of a significant portion of a bank’s shareholders’ funds was surprising. On that day, the Central Bank of Nigeria (CBN) issued a circular titled “Review of Minimum Capital Requirements for Commercial, Merchant, […]

Introduction Prior to January 2020, when Nigeria’s first Finance Act was enacted, the country’s tax laws had remained static for many years, resulting in long-standing tax positions adopted by non-resident companies (NRCs) on their Nigerian tax matters. However, this scenario has evolved significantly as the Federal Government has employed annual Finance Acts as a fiscal

Introduction Economists often speak of opportunity cost—the benefit forgone when an alternative is chosen. In the context of taxes, the opportunity cost could be other expenses that might have been covered with the money paid in taxes or additional dividends enjoyed by shareholders. This raises an important question: Why should individuals or companies willingly pay

Introduction Leo Okafor once said, “The day you execute an estate planning instrument is the day you sow a seed from which the future and comfort of your loved ones begin to grow and their future become assured. The sooner you plant the seed, the sooner shall the tree grow.” This profound statement underscores the

Introduction Nigerian families often face financial strains due to unfavorable economic conditions such as high inflation, unemployment, and fluctuating exchange rates. In this dynamic economic environment, it is crucial for families to develop strategies to endure financial uncertainties and navigate through challenging times. This article explores essential strategies that Nigerian families can employ to enhance

Introduction Mergers and acquisitions (M&A) are strategic business activities with significant legal implications. In Nigeria, the dynamic business environment necessitates a comprehensive understanding of the legal framework governing M&A activities. This article explores the key legal implications of M&A in Nigeria, covering regulatory approvals, antitrust considerations, tax implications, employee rights, and the role of the

Introduction On December 22, 2023, the Central Bank of Nigeria (CBN) took a major regulatory step by introducing new guidelines specifically addressing the operation of bank accounts for entities involved in virtual assets. This move signifies a shift in the regulatory landscape, as Nigerian regulators have historically been cautious about exerting control over digital assets,

Introduction On May 8, 2024, the Corporate Affairs Commission (CAC), led by Registrar-General Hussaini Magaji (SAN), announced a new mandate requiring all Point Of Sales (POS) business operators in Nigeria to register with the CAC. This directive aligns with the Central Bank of Nigeria (CBN) Guidelines for Agent Banking, 2013, and Section 863(1) of the

Mergers and acquisitions (M&A) represent some of the most significant corporate transactions a business can undertake. Central to this process is due diligence, an indispensable component that ensures a successful and equitable deal. Due diligence involves a comprehensive audit or investigation of a potential investment to verify facts that may influence a buyer’s decision to

Introduction The business landscape in Nigeria has undergone a significant transformation with the introduction of the Companies and Allied Matters Act (CAMA) 2020. One of the changes is the provision that allows a single individual to register a limited liability company, making it easier for sole proprietors and startups to incorporate their businesses without the