Trusted Advisors in Audit, Tax & Financial Management

The 2025 Tax Administration Act consolidates tax administration rules, clarifies compliance obligations, and strengthens enforcement mechanisms by the Nigeria Revenue Service (NRS). It affects all taxpayers — individuals, companies, and NGOs — by standardizing audit procedures, documentation requirements, and dispute resolution processes. Organizations should review their tax documentation, reporting systems, and internal controls to align with the new provisions.

Yes, but it depends on the nature of their activities and legal status. NGOs that are registered and operational in Nigeria may have specific exemptions under approved tax laws, especially where funds are used for public good. However, unrelated business income, trading income, or funds not covered under approved exemptions can be taxable. NGOs should consult legal and tax specialists to determine their tax liability and fulfill compliance requirements.

Sector.

To register for a TIN, organizations must visit the NRS portal or designated tax offices, submit required corporate documentation (CAC registration, statutory forms), and provide identification for key officers. Once issued, the TIN should be validated through the NRS platform to ensure correctness before filing returns. BTF can assist with the registration and validation process to prevent errors that could delay compliance.

Donors typically require robust financial controls, transparent audit trails, periodic financial reporting, and evidence of fund utilization aligned with agreed objectives. Reporting often includes audited financial statements, budget variance analyses, cash flow reports, and compliance certificates. Strong internal controls, documented procedures, and regular internal reviews help meet donor expectations and reduce audit findings.

Common audit triggers include inconsistent tax filings, large tax refunds, suspicious deductions, cash-intensive businesses, or discrepancies in financial statements. To prepare, organizations should maintain accurate books, perform periodic internal reviews, produce supporting documentation for all claims, and ensure timely filing and payment. Having a compliance-ready financial system reduces risk and strengthens the audit position.