Fiscal & Tax

Finance Act 2023

Last major Finance Act under Buhari — raised the tertiary education tax to 3%, expanded digital tax to non-resident companies, and introduced the controversial 0.5% cybersecurity levy.

Signed
2023-05-28
Status
Partly superseded

1 Background

The Finance Act 2023 was the last fiscal patch before the 2025 reform overhaul. It raised the tertiary education tax to 3% of assessable profits, expanded VAT/CIT obligations to non-resident digital service providers, and (controversially) introduced a 0.5% cybersecurity levy on certain electronic transactions. Most of its substantive provisions have now been folded into the Nigeria Tax Act 2025 or repealed.

2 Key provisions (4)

01
Tertiary education tax raised from 2.5% to 3% (now superseded by 4% Dev Levy under NTA 2025)
02
Non-resident digital service tax framework formalised
03
0.5% cybersecurity levy (suspended in 2024 after public outcry)
04
Capital allowance regime adjustments

3 What changed in practice

Many provisions superseded by Nigeria Tax Act 2025
Cybersecurity levy was politically too hot — implementation suspended

4 Who it affects

CompaniesDigital service providers

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