Tax and regulatory
The rules that apply to wealth held by Nigerian families, and the framework WealthHat operates within.
Nigeria’s tax system was rewritten with effect from 1 January 2026. Four Acts signed on 26 June 2025, the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act, replaced the previous framework, consolidating separate statutes into a single code and renaming the Federal Inland Revenue Service as the Nigeria Revenue Service. Any figure a family remembers from before that date should be checked rather than relied on.
Residence now determines the size of the net
Under the current framework a Nigerian tax resident is liable on worldwide income, while a non-resident is liable on Nigerian-sourced income. Residence is determined by domicile, habitual abode, family and economic ties, and physical presence, with a 183-day test among the criteria.
The practical consequence is that residence has become the single most consequential planning fact for a family with income abroad. It can change as a result of a move made for family reasons, from a date already past by the time anyone examines it, and it should be established deliberately before a move rather than reconstructed afterwards, in both countries rather than one.
Capital gains are now part of the income calculation for individuals
The long-standing flat-rate treatment of capital gains for individuals has been replaced by integration into the personal income tax framework, so gains are assessed progressively alongside other income. Company gains are treated separately and at the corporate rate. Specific exemptions apply to defined categories of personal asset and to genuine gifts.
Two planning points survive any change of rate. Keep records of acquisition cost and improvement expenditure, because a gain cannot be computed correctly without them. And establish the position before a disposal rather than at filing, particularly where the asset is held offshore or by a non-resident, since the question of which country holds the taxing right is settled by treaty rather than by preference.
Tax paid at source is still tax, and the evidence matters
Withholding tax is deducted by the party making a payment and remitted on the recipient’s behalf. Depending on the payment and the recipient it may be the final tax or a credit against a larger liability. Investment income therefore arrives net, and foreign investments may suffer withholding in the source country before Nigerian treatment is considered. Treaty relief on that foreign deduction usually requires documentation obtained in advance, and a credit that cannot be evidenced will not be allowed.
Nigeria: the licence WealthHat holds, and what it permits
WealthHat Advisory Limited is licensed by the Securities and Exchange Commission of Nigeria as a Corporate Investment Advisor, under the framework set by the Investments and Securities Act 2025, which replaced the 2007 Act in March 2025. That licence permits the firm to advise on investments, construct portfolios, recommend strategy, and rebalance with client approval. It does not permit discretionary management of client assets, which is why every investment decision is presented and approved before it is implemented.