Business leaders have raised concerns that Nigeria's sweeping tax reforms, set to take effect on January 1, 2026, could worsen multiple taxation, increase compliance costs, and discourage critical investments—especially for small and medium enterprises (SMEs).
The new tax framework includes the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act, and the Joint Revenue Board Act, all signed into law in June 2025. While designed to simplify administration, broaden the tax base, and improve compliance, stakeholders at the Lagos Chamber of Commerce and Industry (LCCI) forum in Lagos warned that implementation could weigh heavily on already struggling businesses.
The President of the Chartered Institute of Directors (CIoD), Adetunji Oyebanji, noted that although the reforms aim to boost revenue, the steep hike in Corporate Capital Gains Tax from 10% to 30%, coupled with high compliance costs, could slow growth. "SMEs in particular may struggle with digital reporting and infrastructure demands, pushing more firms into informality," he cautioned.
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Similarly, the President of the Nigeria-British Chamber of Commerce (NBCC), Abimbola Olashore, said SMEs face uncertainty in interpreting the new laws and tight timelines for compliance, as the gazetted versions were only released in September ahead of the January rollout. He added that multiple taxation—particularly at state and local levels—remains a major pain point, with logistics businesses often forced to pay multiple levies on a single delivery route.
LCCI President, Gabriel Idahosa, stressed that successful implementation will require clarity, transparency, and effective collaboration between government and the private sector. Tax administrators, including the Lagos Internal Revenue Service, emphasized the need for registration, valid Tax IDs, and proper filings but assured that exemptions and progressive rates for low-income earners remain intact.
Stakeholders urged government to provide more transition time, clearer guidelines, and stronger accountability measures to ensure the reforms do not stifle SMEs—the backbone of Nigeria's economy.
