Following the assent of the brand new tax legislation by President Bola Tinubu earlier within the week, specialists anticipate it to resolve earlier tax challenges whereas enhancing Ease of Doing Enterprise within the nation.
The Lagos Chamber of Commerce and Business (LCCI) has projected a rise in non-oil tax revenues by N3.2 trillion over the following two years, pushing the tax-to-GDP ratio towards 12 per cent by 2027.
On his half, the speedy previous president of the Chartered Institute of Taxation of Nigeria (CITN) Adeshina Adedayo described the signing as a welcome improvement that might enhance the benefit of doing enterprise within the nation.
“The payments that had been signed into legislation are a welcome improvement and it’ll assist companies to navigate the challenges of tax with readability, therefore, it’s a welcome improvement. This shall be a optimistic enhance to the benefit of doing enterprise.”
Furthermore, the pinnacle of Monetary Establishments Scores at Augusto&Co, Ayokunle Olubunmi stated, with the signing of the TX payments into legislation, modifications are anticipated throughout the fiscal system to permit for full implementation of the reforms.
Noting that the president now has the authorized backing for the proposed modifications within the fiscal system, significantly tax technology and administration, he added that, “whereas some modifications within the fiscal system is predicted within the subsequent few months, the complete affect of the proposed modifications could be within the medium time period given the structural reforms wanted for the complete implementation.”
Equally, the director/CEO of Centre for the Promotion of Non-public Enterprise (CPPE), Dr. Muda Yusuf, highlighted that it’s a important step ahead.
He believes this laws will successfully deal with many challenges confronted in tax administration, significantly points like a number of taxation, outdated tax legal guidelines, and total effectivity.
“With the incorporation of extra expertise, we are able to anticipate a rise in income technology, which is promising. Whereas this improvement is encouraging, it is very important recognise that reform is an ongoing course of. Because the implementation unfolds, there could also be areas that require changes to reinforce its effectiveness,” Yusuf defined.
He added that “total, this new tax legislation represents a constructive development for the personal sector, producers, and the broader neighborhood. It units the inspiration for continued enchancment in our tax system.”
In the meantime, LCCI has recommended President Bola Tinubu’s authorities for signing 4 landmark tax reform payments into legislation, anticipated to considerably enhance Nigeria’s commerce competitiveness.
It added that, “the brand new tax legal guidelines will simplify tax compliance, scale back transaction prices, and assist Nigeria’s export competitiveness below the African Continental Free Commerce Space (AfCFTA). With a unified submitting system and streamlined state and federal tax processes, companies can anticipate compliance time to fall by as much as 40 per cent.”
The director-general of LCCI, Dr. Chinyere Almona, acknowledged that, “from a macroeconomic perspective, the reforms are anticipated to affect 4 main areas: inflation, commerce competitiveness, tax compliance, and investor confidence. Unifying Nigeria’s complicated and fragmented tax legal guidelines and the digital and institutional upgrades within the payments give the personal sector a greater platform to develop and compete.”
Almona famous that, “the potential affect of inflation is twofold. Within the brief time period, as companies re-price, the broader tax internet and preliminary compliance changes might set off a slight improve in core inflation, estimated between 40–60 foundation factors.
“Nonetheless, within the medium time period, the discount of tax inefficiencies and a shift from financial financing to sustainable income ought to assist ease worth pressures. The federal government’s fiscal projections anticipate headline inflation falling to fifteen per cent by end-2026, in comparison with 27.6 per cent in Might 2025. With important items and companies now exempt from VAT, we anticipate this transfer to ease the price of residing for tens of millions of Nigerians.”
She additionally stated tax compliance is one other space the place the reforms are poised to ship tangible good points, saying that Nigeria’s tax-to-GDP ratio, at the moment at 7.9 per cent, is among the many lowest in sub-Saharan Africa.
She defined that, “from an funding standpoint, the reforms provide the predictability and transparency that home and international traders search. Nigeria’s international direct funding (FDI) stood at a modest $29.83 million in This fall 2024, highlighting the urgency for reform.”
Almona added that, “we acknowledge that passing laws is simply step one. Profitable execution would require shut coordination throughout federal, state, and native governments and sturdy monitoring and suggestions from the personal sector.
“We urge the speedy rollout of a public-facing implementation roadmap, starting with pilot e-tax methods in high-volume states akin to Lagos, Rivers, and Kano.”
LCCI referred to as for sturdy and aggressive engagement with related stakeholders, saying, it’s a template required for crucial conversations concerning our nation’s financial system and political cohesion, saying that “the following six months earlier than the complete implementation in January 2026 ought to present adequate house for pilot phases and guarantee all gears are engaged for optimum efficiency.”
Additionally, the director/CEO of Centre for the Promotion of Non-public Enterprise (CPPE), Dr. Muda Yusuf, stated this laws will successfully deal with many challenges confronted in tax administration, significantly points like a number of taxation, outdated tax legal guidelines, and total effectivity.
“With the incorporation of extra expertise, we are able to anticipate a rise in income technology, which is promising. Whereas this improvement is encouraging, it is very important recognise that reform is an ongoing course of. Because the implementation unfolds, there could also be areas that require changes to reinforce its effectiveness,” Yusuf defined.
He added that, “total, this new tax legislation represents a constructive development for the personal sector, producers, and the broader neighborhood. It units the inspiration for continued enchancment in our tax system.”
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