Warning: Top 5 Isses Nigeria Will Face in 2026 and How to Prepare Ahead

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2026 is not just another year. It might be one of the toughest yet — for individuals, entrepreneurs, and small businesses. But if you see what’s coming and prepare ahead, you won’t just survive — you could come out stronger. Read on.

1. Major Tax Overhaul — Confusion & Compliance Risk

What’s happening:

  • The Nigeria Tax Act 2025 consolidates multiple tax laws (CIT, VAT, CGT, etc.) into a unified system starting Jan 1, 2026. (Tax News)
  • New thresholds: small businesses (turnover under ₦100 million & assets under ₦250 million) may be exempt; bigger entities face revised rates, new levies (e.g. 4% Development Levy), stricter VAT/invoicing rules, mandatory digital record-keeping. (Baker Tilly Nigeria)
  • Stricter compliance and enforcement expected given establishment of Nigeria Revenue Service (NRS) replacing old tax agency. (The Guardian Nigeria)

Why it’s bad:

  • Many small business owners, freelancers — especially informal — may be unaware or ill-equipped.
  • Risk of fines, penalties, unexpected tax bills.
  • Informal businesses may struggle to comply (e.g. digital invoicing, record-keeping).

How to prepare / Opportunity:

  • Start now: if you run a small business, register for a business identity, get proper records, digitize bookkeeping (even in Excel).
  • Learn the new law’s basics or hire someone to help — it’s an opportunity for consultants, accountants, small-biz advisers.
  • Build your business under the “small business exemption” threshold deliberately, if feasible.

Lesson from abroad:
Countries that reformed tax systems successfully first ran public-education campaigns, provided simplified tax-filing tools for small businesses, and offered tax-incentives for early compliance. Nigeria’s reforms include periods of sensitization — take advantage of that window. (The Nation Newspaper)

2. Inflation & Cost of Living Spike

Why likely:

  • Fiscal pressure on government leads to reduced subsidies, higher indirect taxes (VAT, levies), pass-through inflation.
  • Global economic instability, currency fluctuations — these hit Nigeria hard.

How to prepare / Protect yourself:

  • Diversify income streams (don’t rely on salary alone).
  • Build savings or emergency fund (3–6 months of living expenses).
  • Learn basic personal budgeting, track expenses, avoid unnecessary debt.

3. Pressure on Small Businesses & SMEs

What to expect:

  • Cost of inputs will rise (raw materials, transport, utilities) — squeezing margins.
  • Some small shops or informal traders may be forced to shut down if they can’t comply with tax changes or manage increased costs.

How to prepare / Adapt:

  • Shift towards lean operations: minimize overhead, reduce waste, use digital tools for operations.
  • Consider pivoting — e.g. from physical shop to online / hybrid model, reduce inventory, use drop-shipping, offer services rather than goods.
  • Build value-added services (consulting, digital marketing) rather than simply selling goods.


4. Increased Competition as More People Try “Side Hustles”

Why:

  • Many Nigerians will turn to side hustles / entrepreneurship to escape economic pressure.
  • The influx will raise competition in digital services, freelancing, small business markets.

How to survive / stand out:

  • Focus on specialization: niche down instead of general freelancing (e.g. bookkeeping for SMEs, tax compliance consulting, digital marketing for a particular sector).
  • Deliver high quality + consistency.
  • Build personal brand, reputation, reliability — these will matter more than “everyone offering the same services.”

5. Digital Infrastructure & Payment/Banking Risks — But Also Opportunity

What to expect:

  • Government pushing formalization, digital tax systems, invoicing — which may push more businesses online or to adopt digital payments. (Baker Tilly Nigeria)
  • But digital infrastructure may lag (internet access, costs, reliability), and many people may still struggle with transition.

How to prepare & leverage:

  • Learn basic digital tools — bookkeeping software, invoicing templates, cloud storage.
  • For entrepreneurs: build services around helping others transition (digital bookkeeping, invoicing, online store setup, remote customer support).
  • Use digital payment platforms, but also maintain flexibility for cash-based clients (many Nigerians still prefer cash).

2026 may bring turbulence — tax changes, inflation, regulatory pressure, economic hardship.

But those who see ahead, adapt early, work smart, and build value — not hype — will thrive.

If you treat 2026 as an opportunity disguised as challenge, you can come out ahead.

Which of these issues do you think will hit you the hardest — and what will you do differently to prepare before 2026? Share in the comments so we can build solutions together.

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