New Tax Laws: Private Sector Operators Laud Federal Government’s Efforts

The Lagos Chamber of Commerce and Industry (LCCI) and the Centre for the Promotion of Private Enterprise (CPPE) have praised the federal government for enacting four newly signed tax laws, endorsed by President Bola Ahmed Tinubu on Thursday.

The Lagos Chamber of Commerce and Industry (LCCI) and the Centre for the Promotion of Private Enterprise (CPPE) have applauded the federal government for signing into law four transformative tax bills, describing them as major reforms that will strengthen the private sector, enhance trade, and boost government revenue.

Dr. Chinyere Almona, Director General of LCCI, stated that the new laws are expected to generate an additional ₦3.2 trillion in non-oil tax revenue over the next two years and raise Nigeria’s tax-to-GDP ratio to 12% by 2027.

The newly signed legislations—the Nigeria Tax Bill (Ease of Doing Business), the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill—followed extensive stakeholder consultations and represent a significant leap toward a more transparent, efficient, and growth-focused fiscal system.

Almona highlighted that the reforms would impact four key economic areas: inflation, trade competitiveness, tax compliance, and investor confidence. She noted that simplifying Nigeria’s complex tax regime and introducing digital and institutional upgrades would empower the private sector to grow and compete more effectively.

The LCCI projected a two-fold impact on inflation: initially, businesses adjusting to the broader tax base may cause a marginal rise in core inflation—estimated between 40 and 60 basis points—but medium-term efficiency gains and reduced reliance on monetary financing should help stabilize prices. The government, according to LCCI, expects headline inflation to decline to 15% by end-2026, down from 27.6% in May 2025. Exempting essential goods and services from VAT is also expected to ease the financial burden on Nigerians.

On trade, the chamber noted that a streamlined tax filing system and harmonized federal and state tax procedures could reduce compliance time by up to 40%, lowering transaction costs and supporting Nigeria’s competitiveness under the African Continental Free Trade Area (AfCFTA). These reforms are also likely to attract more foreign direct investment.

Improved tax compliance is another anticipated outcome. The establishment of a single taxpayer ID, risk-based audit systems, time-bound refund mechanisms, and the creation of a Tax Ombudsman are expected to expand the tax base and reduce informality in the economy.

Almona added that from an investment perspective, the reforms offer predictability and transparency—key factors for both domestic and foreign investors. With Nigeria’s FDI standing at only $29.83 million in Q4 2024, these reforms signal fiscal responsibility and reliability. She also highlighted the expected independence of the new Nigerian Revenue Service (NRS), backed by performance tracking and institutional safeguards, as a credibility booster.

However, the LCCI emphasized that successful implementation would require strong collaboration across all tiers of government and input from the private sector. It urged the government to immediately launch a public-facing implementation plan, starting with pilot e-tax systems in high-activity states like Lagos, Rivers, and Kano, to ensure readiness ahead of full implementation in January 2026.

CPPE’s Founder and CEO, Dr. Muda Yusuf, also praised the reforms, describing them as a bold step in restructuring the nation’s tax administration. He listed several benefits, including the repeal of outdated tax laws, improved tax management through technology, consolidation of multiple taxes, and enhanced revenue generation.

He noted that better fiscal outcomes would enable the government to fund infrastructure, improve economic productivity, reduce the fiscal deficit, and promote macroeconomic stability. He also highlighted expanded concessions for small businesses and low-income earners.

Nonetheless, Yusuf cautioned that no reform is flawless and urged the government to be flexible in adjusting the laws if necessary, without undermining the essence of the reforms. “Reform is a journey, not a destination,” he said, calling for an inclusive and well-structured implementation process over the six-month transition period to avoid disruptions to fiscal operations.