On January 1, 2026, Nigeria’s new tax reform laws officially take effect.
These aren’t small changes.
They’re complete changes to how taxes work, who pays what, and what records you must keep.
Here’s what many founders don’t know: under the new laws, if your business makes more than N50 million a year or owns fixed assets worth more than N250 million, you’ll face stricter tax requirements. You’ll need to file detailed financial reports, you’ll need proper records of every transaction, and you’ll need to use government-approved e-invoicing systems for VAT.
The new reforms bring a 4% Development Levy on business profits, mandatory e-invoicing for all VAT-registered businesses, and Capital Gains Tax that has jumped to 30%, three times what it used to be. The government can now demand to see detailed transaction histories and even the smallest businesses need to prove that their turnover is under N50 million with proper documentation to qualify for exemptions.
That’s why SDC and BrandDrive just announced a five-year partnership that will equip over 20,000 African businesses with the financial tools and knowledge they need before these reforms hit.
This isn’t about giving people free software and calling it a day. It’s about making sure African business owners understand their numbers before the government starts asking serious questions. Starting immediately, every founder who joins SDC’s programs/innovation drive, including SDC Startup School, SDC Launchpad, SDC Startup Stories etc, will get access to BrandDrive’s financial management platform built directly into their learning experience.
Participating companies/businesses get an annual discount on BrandDrive premium tools, giving you access to the same financial dashboards that big companies use at a price small businesses can afford. You’ll receive hands-on guidance on what the 2025 Tax Reform Acts mean for your specific business and how to stay compliant.
BrandDrive’s app also provides real-time financial tracking and reporting so you always know how much money is coming in, going out, and what you owe in taxes before it becomes a problem. You’ll also get direct support from BrandDrive’s team and financial tips at your fingertips.
The businesses that will thrive in 2026 aren’t necessarily the ones with the best products. They’ll be the ones whose financial records are clean, whose tax filings are accurate, and who can show exactly where every naira came from and went to. This partnership between SDC and BrandDrive is about making sure African founders don’t just survive the new tax era. It’s about helping them use these reforms as an opportunity to build stronger, more credible businesses that investors take seriously.
Applications are now open for all innovation drives of SDC with full BrandDrive integration. Apply now at https://www.sdcstartupschool.com/innovations
https://www.sdcstartupschool.com/partnerships/sdc-and-branddrive.
