Regulatory Round Up for First Half of 2025

Nigeria’s regulatory environment continues to evolve at a rapid pace, with 2025 ushering in a wave of significant legal, financial, and technological reforms that are reshaping how businesses operate. From sweeping changes in data protection and capital markets to major tax restructuring and advancements in payment infrastructure, regulators are increasingly focused on strengthening oversight, improving transparency, and aligning Nigeria with global standards.

For startups and growth-stage businesses in particular, these developments are not merely regulatory updates—they represent material shifts in compliance expectations, operational frameworks, and market opportunities. Understanding these changes is therefore critical, not only to ensure compliance, but also to strategically position within an increasingly structured and technology-driven ecosystem.

This article highlights the major regulatory updates shaping Nigeria’s business landscape, unpacking their key provisions and practical implications for businesses navigating this evolving terrain.

The Major Regulatory Updates

• The Issuance of the Nigerian Data Protection - General Implementation Directive : The data protection space opened the regulatory doors for the new year, ushering in the Nigerian Data Protection Act (NDPA) General Administrative and Implementation Directive (GAID). This Directive, which had been in deliberation since 2024 was finally issued by the Nigerian Data Protection Commission (NDPC) on the 20th of March as a legal instrument to provide guidance to data processors and controllers for the implementation of the Nigerian Data Protection Act. The NDPA GAID brought several new provisions including the clarification of the categories of data subjects, creation of compliance rules for data controllers and processors deploying emerging technologies and importantly, revoking the Nigerian Data Protection Regulation.

• The Enactment of the Investments and Securities Act: It is well known that the Investments and Securities Act lies at the heart of capital market regulation in Nigeria. On March 31, 2025, President Bola Ahmed Tinubu signed the Investments and Securities Bill, 2025 into law, repealing the Investments and Securities Act, 2007 and introducing a new legal framework through the Investments and Securities Act, 2025. This landmark legislation marks a significant shift in the financial regulatory landscape, introducing several key reforms. Notably, it provides for the registration and regulation of virtual assets by the Securities and Exchange Commission, introduces a new classification of securities, and establishes the Investments and Securities Tribunal to enhance the resolution of capital market disputes. These and other major provisions reflect Nigeria’s commitment to strengthening its capital market, fostering investor confidence, and aligning with global best practices.

• The Enactment of the Tax Reform Act: Following the enactment of the Investments and Securities Act, 2025, four new tax laws were signed into law: the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Act, and the Joint Revenue Service Board Act. These laws introduced significant reforms to Nigeria’s tax framework. The Nigeria Tax Act, in particular, stands out for consolidating all existing tax laws into a single piece of legislation, an effort aimed at simplifying compliance and improving clarity. Key highlights include the exemption of certain income brackets from personal income tax, a revised exemption threshold for small companies, and the introduction of a development levy payable by Nigerian companies, excluding small companies.

• The NIBSS National Payment Stack: Nigeria Inter-Bank Settlement System (NIBSS), which is the central switch, was unveiled the National Payment Stack (NPS), a landmark infrastructure upgrade set to modernise Nigeria’s instant payment ecosystem and drive the country’s digital financial transformation. Building on the legacy of NIBSS Instant Payments (NIP) , the NPS introduces a more advanced framework designed to support Nigeria’s ambition of becoming a $1 trillion economy within the next eight years. Key features of the NPS include real-time transactions and instant settlements, and a unified rail for both bulk and single payments. It also offers improved tools for dispute resolution and reconciliation, robust KYC verification using BVN, RC Number or TIN, and introduces Request-to-Pay and Direct Debit functionalities. The system is also said to be multi-currency ready, with cross-border capabilities and a sandbox that allows partners to integrate in as little as 48 hours.

• CBN Exposure or Draft Baselines for AML Solutions: On May 20, 2025, the Central Bank of Nigeria released the Draft Baseline Standards for Automated Anti-Money Laundering Solutions via a circular to all financial institutions in Nigeria. According to the letter, the draft aims to enhance operational efficiency and ensure regulatory compliance with AML/CFT/CFF obligations across the financial sector. The proposed standards are intended to apply to core AML solution components, including sanctions list screening, Politically Exposed Persons identification, transaction monitoring and risk-based analysis, as well as Customer Due Diligence , Know Your Customer, and Know Your Customer’s Business processes. The draft further provides that the CBN will conduct periodic assessments and reviews to monitor institutional compliance. Institutions that fail to meet the baseline standards will be subject to sanctions or penalties as prescribed by the CBN.

• CAC Reviewed Service Fees : The decline in the economy as led to the increase in prices of goods and services and the regulatory bodies are not left out. Effective today, August 1, the Corporate Affairs Commission will revise its fees for its services. Expectedly, there will be an increase in the fees paid for company registration, filing of returns and other essential services provided by the commission. However, the commission has assured the public that the fees will remain modest and competing.

Conclusion

As the regulatory landscape continues to evolve, these recent developments serve as a reminder that compliance and innovation must go hand in hand. For startups, staying informed is not just about meeting legal obligations, it’s about positioning for growth in an increasingly structured environment. By keeping up with new rules and making compliance part of everyday operations, startups can grow with more clarity and confidence.

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