Media and advertising professionals in Nigeria view the country’s new tax reforms with cautious optimism. They see the changes as a catalyst for business formalization, competitive advantage, and improved foreign investment in the integrated marketing communications sector.

Industry leaders spoke at the Media Independent Practitioner Association of Nigeria (MIPAN) 2026 Business Outlook Session at the Radisson Blu Hotel, Ikeja, Lagos. They stressed that while the reforms present compliance challenges, they offer significant opportunities for structured growth and professionalism.

Understanding Agency-Specific Implications

Brenda Nwagu, Vice President of MIPAN, highlighted crucial details affecting agency businesses. “We have a lot of eye openers,” she said. “There was much information about the changes in capital gains tax, including its removal as the case may be, and the thresholds for company income tax. This is very important.”

Nwagu quoted the keynote speaker: “The tax man said, ‘We don’t want to be taxing poverty; we want to tax prosperity.’ So, we aim to reach that N100 million threshold, and we don’t mind paying taxes when we make that kind of money.”

The Intermediary Challenge

Nwagu emphasized that agencies operating as intermediaries need proper documentation. “We are an agency business, so we must be particularly intentional about how we document.” Agencies act as a middleman, working between advertisers and broadcasters (digital or otherwise). “You have to clearly understand that money passes through you to pay a third party. This distinction is clear on what should be taxable. This will definitely reduce the tax impact on our industry generally.”

She projected optimism about foreign investment. “If the government properly implements this in the spirit intended, it should translate to an improvement in foreign direct investment into Nigeria. Right now, we still hear stories of people leaving, and we have fewer companies here, but we may see some positive signs next year.”

Preparing for 2026

Nwagu cautioned about timelines. “I think 2026 is a time for preparation, not necessarily for reaping. It will take a little while for the numbers to translate to on-ground reality. Agencies must build systems, build capacity, and clearly understand how these reforms impact their company.”

Building Institutions, Not Just Businesses

Nwagu passionately called for institutional thinking. “The problem we have in Nigeria generally is that we don’t formalize our business as we should. Many of us build for today and not for the future. We build small companies or one-man businesses just to make a profit today.”

She advised: “You need to build your capital, build the business, invest your profits, and create a company that can stand next to foreign or global companies in the future.”

Embracing Compliant Structures

Eki Adzufeh, Executive Secretary of MIPAN, stressed the importance of embracing the reforms. “The tax reform has come to stay. Everyone must become aware of the coming tax reform; it is for our own good. The reform will make us structured and help us conduct our businesses properly.”

Adzufeh highlighted benefits for small businesses and individuals. “The keynote speaker said the reform will help individuals and small businesses because you only pay tax after reaching a certain threshold. Before now, anything you did, they made you pay. The reform has reduced these things. We need to embrace it because it is the way forward.”

Competitive Advantage Through Compliance

Soji Adeyemi, CEO of Brandyard, emphasized that compliance creates competitive advantages. “Every organization, agency, and individual in Nigeria’s marketing companies knows our KPI is connecting brands and consumers. We also work with data, understanding consumers, trends, and things that shape our target audience’s behavior.”

Adeyemi noted the current business perception: “With the tax reform, many national and multinational businesses, both present and absent, perceive that the country is not well regulated and the people they work with are not compliant. We must understand how this shapes the perception of the marketing communications industry.”

He concluded: “As a business, I will ensure our business is tax compliant and our documentation is intact. This will ensure we can compete with other businesses who are bigger or more dominant in capacity.”

Henry Ononiwu, Chief Marketing Officer for PHD Media, found clarity from the discussions. “The tax laws now apply clearer to you as individuals and as companies, especially where I see that it benefits small and medium scale enterprises. I think that’s a great thing.”

He emphasized innovation and structure. “This is the best time to put that structure in place. This is also the best time for innovation and creativity. I am not talking about elaborate items or big innovations; I mean being innovative in how you conduct your business. Segment your market, target your audience, and drive revenue for your business.”

Ononiwu also highlighted an opportunity for industry clarity. “This session offered a potential opportunity to create that understanding of what we actually do. Now, we have conversations about hosting another conference where FIRS and we, as media agencies, can come together. We can truly discuss how we structure agencies so that the billings and taxes apply in the right proportion to the right verticals.”

Clarity, Education, and Efficiency

Ijeoma Okafor, head of buying and investment at All Season Media, appreciated the educational value. “The program regarding tax reform was electric and very educative. It gave us an advantage in understanding the reform. People just need to understand what it is. With everything clarified, 2026 seems and looks bright. It shows that the government has good intentions for everybody, and they have cleared up the aspect of double taxing for us.”

Temitope Dania, Founder of Daniamite Communications, acknowledged that documentation is often a challenge, especially for SMEs. “But when it comes to auditing, proper documentation makes things easier. You don’t manually explain things to auditors and try to justify business expenses versus income received.”

Dania concluded: “With this new tax reform, we will have to improve our systems, structures, and processes. This automatically means businesses will become more efficient financially. We must understand the policies to align with the new reforms. A lot of necessary training and enlightenment will happen. That will naturally translate back to the business systems and structures. The finance teams will be more aware and educated, and I think that makes the auditing process much more seamless.

“This is especially important because we work with many multinationals and big companies. Half of the time, they want to audit our systems, but we face challenges because we are not properly structured. With this new tax reform, I think that process becomes easier and simpler. I foresee a lot more integration and more businesses structuring better, which I think is a positive thing for the industry.”

As Nigeria’s marketing communications industry prepares for 2026, the consensus is clear: tax reform, while demanding, presents an opportunity to professionalize operations, attract foreign investment, and build institutions capable of competing globally.

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