PwC has advised companies to update their payroll systems to align with the new tax policy and rates following recent tax reforms. This was highlighted by Kenneth Erikume, Partner in the Tax Reporting & Strategy division of PwC, during his presentation at the FirstBank Nigeria Economic Outlook 2026 event in Lagos.

Erikume emphasized the importance of ensuring that businesses are working with the final, approved version of the tax law, as using outdated or incorrect versions could lead to severe penalties from tax authorities. He suggested that companies also consider automating their tax processes to minimize errors and avoid potential sanctions.

He also spoke on the theme: “The Great Calibration: Mastering Resilience in an Era of Asynchronous Growth,” a timely subject as businesses face increasing challenges due to economic shifts.

Key Takeaways from the Economic Outlook

1. Macroeconomic Stabilization:
   • The keynote speaker, Yemi Kale, Group Chief Economist and MD of Afrexim Bank, noted that Nigeria is witnessing signs of macroeconomic stabilization, with falling inflation numbers, gradual monetary easing, and improved external reserves being key indicators. He also mentioned managed FX flexibility as a positive factor.
   • However, Kale cautioned that structural challenges remain, such as infrastructure gaps, energy constraints, skills mismatch, and security and governance risks.
2. Recommendations for Economic Resilience:
   • Kale recommended that Nigeria’s economic managers find ways to unlock long-term domestic capital to translate growth into job creation.
   • He further noted that naira devaluation is likely to persist, with it occurring every five to six years. As such, companies should hedge against this by diversifying their market reach.
3. Building Resilient Cashflows:
   • Ayokunle Ojo, Head of Treasury Sales & Derivatives Marketing at FirstBank, stressed the importance of companies building strong cashflows to ensure resilience amidst economic challenges. He also discussed the need for companies to navigate uncertainty, particularly in today’s energy sector.
4. Focus on Core Competencies:
   • Niyi Yusuf, Managing Partner at Verrak, urged companies to focus on their core competencies and maintain high service standards to sustain market leadership in a competitive environment.
5. Investment Climate:
   • Laura Fisayo-Kolawole, Head of Equities and Alternative Solutions at First Asset Management, pointed out that the Nigerian economy is currently benefiting from disinflation, which makes it a profitable environment for investors.
6. Resilience in Nigeria’s Economy:
   • Olusegun Alebiosu, CEO of FirstBank, highlighted the theme of the event, “The Great Recalibration: Mastering Resilience in an Era of Asynchronous Growth,” underscoring that while global growth is uneven, Nigeria’s economy continues to demonstrate resilience. Despite challenges like currency adjustments, inflation, and global uncertainty, Nigeria is seeing signs of innovation, enterprise, and reform.
   • Alebiosu emphasized that resilience is at the core of FirstBank’s legacy, with the institution supporting businesses through economic transitions and positioning itself as a stable partner for Nigeria’s next phase of growth.

Conclusion: Navigating the Changing Landscape

As Nigeria grapples with global economic shifts, businesses are urged to stay proactive in adapting to new tax regulations, diversifying risk, and focusing on core strengths. The PwC tax advisory and other economic experts at the event provided invaluable insights into ensuring resilience in a period of uncertainty. The resilience shown by both Nigerian businesses and financial institutions like FirstBank serves as a beacon for others looking to navigate these challenging times.