Ejike Nwafor, an investment and regulatory counsel, outlines the shifting landscape for investors and fintechs in Nigeria as the nation targets a US$1trillion economy.
According to Nwafor, the investment conversation in 2026 has fundamentally changed: the question is no longer whether Nigeria is reform-minded, but whether investors are prepared for a system that has moved decisively from “policy reform to regulatory enforcement”.
Between 2022 and 2025, Nigeria enacted consequential economic legislation, including the Nigeria Startup Act, the Electricity Act, and the Investments and Securities Act (ISA) 2025. Nwafor argues that these are no longer just aspirational frameworks; they are being actively enforced, creating a business environment best described as “digital, identity-driven, and compliance-intensive”.
The rise of the ‘Single Identifier’
One of the most transformative reforms cited is the move toward identity harmonisation. The Corporate Affairs Commission (CAC), revenue authorities, and financial institutions now operate an integrated system where a company’s RC number doubles as its Tax Identification Number (TIN). Furthermore, directors and beneficial owners must be linked via their National Identification Number (NIN).
“Nigeria has made it much easier to register a business — and much harder to hide one,” Nwafor notes. While this reduces identity abuse, it raises the stakes for compliance, as errors in one database now cascade across the entire regulatory ecosystem.
Tech and startup obligations
For the technology sector, the ecosystem is anchored on startup labelling, data protection, and financial regulation. While qualifying startups can access incentives under the Nigeria Startup Act, they must strictly comply with the Nigeria Data Protection Act and SEC fintech licensing where applicable. Additionally, foreign technology agreements must be registered with NOTAP to ensure lawful FX repatriation.
Despite digital progress, structural bottlenecks remain. Nwafor highlights Fiscal Tightening as a key challenge, noting that Capital Gains Tax for companies now effectively aligns with corporate income tax at up to 30 per cent, fundamentally altering exit strategies.
Furthermore, the Land Use Act and sub-national multi-taxation continue to present obstacles, with state and local governments often imposing overlapping levies despite federal harmonisation efforts.
Nwafor concludes that the era of regulatory arbitrage is closing. “The golden rule for investors in 2026 is simple: Align your NIN, RC number, tax records, and beneficial ownership disclosures before your first dollar enters the system”