Tax laws: Business leaders push for fair implementation,

By Merit Ibe

Worried about the peculiarities of the Nigerian business landscape and the possibility of arbitrary enforcement and systemic graft, business leaders have urged the federal government to implement the new tax laws with fairness and transparency.

They also pushed for aggressive tackling of corruption, saying it is essential to restoring investor confidence and driving sustainable economic growth.

The business leaders, who aggregated their position through the organised private sector (OPS), emphasised the need for a close coordination across federal, state, and local governments, saying that passing legislation was only the first step.

The sector noted that an analysis of the new tax laws recently signed by President Bola Tinubu, showed that the laws portend good for manufacturers, businesses and the economy at large, and so could be a major game changer in Nigeria’s business environment if the framework is executed as designed.

OPS opined that the intent and the implementation of the laws must be in alignment for a productive outcome, calling on government to deal with the issue of corruption, which is a major bane of tax system in Nigeria, demanding a greater tax transparency from government, which is essential for building and maintaining public trust and confidence in the economy.

To the sector, enhanced accountability and fairness stand out as pivotal elements in fostering trust and cooperation.

The Lagos Chamber of Commerce and Industry (LCCI), applauded the new tax laws, which will significantly improve Nigeria’s trade competitiveness.

“With the introduction of a unified filing system and streamlining state and federal tax processes, businesses could see compliance time fall by up to 40 per cent, effectively reducing transaction costs and supporting Nigeria’s export competitiveness under the African Continental Free Trade Area (AfCFTA). A better streamlined tax system is a factor in attracting foreign direct investment (FDI).”

It however noted that tax compliance is another area where the reforms are poised to deliver tangible gains, as Nigeria’s tax-to-GDP ratio, currently at 7.9 per cent, is among the lowest in sub-Saharan Africa and could be increased with the reform.

For better compliance and implementation, the chamber recommended the establishment of a single taxpayer ID, risk-based audit protocols, time-bound refund mechanisms, and taxpayer protection instruments such as the Office of the Tax Ombudsman, which should broaden the tax base while reducing the informal sector’s dominance.

“With full implementation, the LCCI projects an increase in non-oil tax revenues by N3.2 trillion over the next two years, pushing the tax-to-GDP ratio towards 12 per cent by 2027.”

The chamber further called for the immediate rollout of a public-facing implementation roadmap, beginning with pilot e-tax systems in high-volume states such as Lagos, Rivers, and Kano.

Acknowledging the work done by the Presidential Fiscal Policy and Tax Reforms Committee in drafting and presenting the new tax bills on different platforms, which created well-deserved publicity and awareness, the chamber noted that a robust and aggressive engagement with relevant stakeholders is a template required for critical conversations regarding the nation’s economy and political cohesion.

“The next six months before the full implementation in January 2026 should provide sufficient space for pilot phases and ensure all gears are engaged for optimal performance.”

In his input, President, Calabar Chamber of Commerce and Industry (CALCCIMA), David Etim, commended the laws but added that implementation, as historically seen in Nigeria, could be a challenge and could completely overturn the intent of the government.

He urged the government to see to the implementation process and tackle the issue of corruption.

“Subject to a critical review, the potential for these tax laws is enormous. Both the intent and the implementation must be in alignment. It’s looking very positive, but the taste of the pudding is in the eating.”

Etim advised that the government should tackle the issue of corruption in Nigeria, noting that the tax law itself is designed to address those things and, if done properly, it’s a major game changer.

“The tax bracket issues, the reduction in the expansion of the tax net by voluntary compliance and penalizing tax delinquency, are in the right direction. But the issue is in the implementation.

The mindset of those to implement should not be to undermine it. If the government as an institution is able to midwife the process, and all beneficiaries of a dysfunctional system are able to be contained so that the system can become functional—so that the greater population of Nigerians can benefit from the system in which they are operating, as opposed to having a dysfunctional system—it will be a win for the economy.

Once we can fix that distortion in our nation’s socio-political life, economic life, then Nigeria will be heaven on earth.

“I believe the intent of this government is for the good of all because the battle they have fought to get these tax reforms through is significant.”

For Daniel Dickson-Okezie, an SMEs expert and a member of the LCCI, the new tax laws portend good tidings for manufacturers, businesses, and the economy at large, but will be successful if there is transparent enforcement and public trust.

He urged the government to deal with the issue of corruption because it’s a major bane of Nigeria’s tax system.

“These reforms mark a significant step towards a better and efficient tax system, which will focus on supporting vulnerable groups while at the same time supporting economic growth.

As we celebrate these reforms, we need to also look at the issue of how successful these reforms will be.

Principally, these reforms, or the new tax laws, will be successful if there is transparent enforcement and public trust.

The new tax laws are very beneficial to SMEs and the manufacturing sector. As a matter of fact, it is good for the ease of doing business because it has reduced financial burden, and it provides relief for low-income households and small businesses while ensuring that high-income earners and luxury consumers pay more.

The area of concern which we should look at is the issue of enforcement. How will this be done? It is fundamental.

In Nigeria, there are so many laws, but the problem is the will to enforce them and do the right thing. We believe that this will work out because it has replaced the old tax system that was outdated and inefficient and disproportionately harsh on the low-income group.

We expect a better tax-to-GDP ratio, better things for the SMEs and the manufacturing sector, if these laws are enforced the way they should.

We hope the government deals with the issue of corruption because it’s a major bane of our tax system in Nigeria. The tax system and the officials are highly corrupt, and this is known to all business owners. The organized and unorganised private sectors welcome the new laws. It’s for the good of all and a step in the right direction.”