Dike Onwuamaeze

The Lagos Chamber of Commerce and Industry (LCCI) and the Centre for the Promotion of Private Enterprise (CPPE) have commended the federal government on the enactments of four brand new tax laws signed by President Bola Ahmed Tinubu on Thursday.

According to the LCCI and the CPPE, the new laws are landmark tax reform laws that would enhance the competitiveness of the private sector, boost trade and increase governments ‘ revenues.

The Director General of LCCI, Dr. Chinyere Almona, said yesterday that the new laws would “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.”

Almona said that the tax reform bills, namely 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 were enacted and signed into laws after extensive stakeholder consultations, mark a significant milestone in Nigeria’s journey toward a more transparent, efficient, and growth-aligned fiscal framework.

She said that from a macroeconomic perspective, the reforms are expected to impact four major areas: inflation, trade competitiveness, tax compliance, and investor confidence.

Almona said,  “Unifying Nigeria’s complex and fragmented tax laws and the digital and institutional upgrades in the bills give the private sector a better platform to grow and compete.”

The LCCI also envisaged that these tax laws would potential impact inflation in two ways.

It said that in the short term, as businesses re-price, the broader tax net and initial compliance adjustments might trigger a slight increase in core inflation, which is estimated at between 40–60 basis points.

But in the medium term, the reduction of tax inefficiencies and a shift from monetary financing to sustainable revenue should help ease price pressures.
“The government’s fiscal projections anticipate headline inflation falling to 15 per cent by end-2026, compared to 27.6 per cent in May 2025.

“With essential goods and services now exempt from VAT, we expect this move to ease the cost of living for millions of Nigerians,” the chamber said.
 The LCCI also added that “the tax laws will also significantly improve Nigeria’s trade competitiveness.”  

It added: “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 also said that tax compliance is another area where the reforms would deliver tangible gains, which would enhance public revenue.

“Establishing a single taxpayer ID, risk-based audit protocols, time-bound refund mechanisms, and taxpayer protection instruments such as the Office of the Tax Ombudsman should broaden the tax base while reducing the informal sector’s dominance,” the chamber said.

The LCCI added, “From an investment standpoint, the reforms offer the predictability and transparency that domestic and foreign investors seek. Nigeria’s foreign direct investment (FDI) stood at a modest US$29.83 million in Q4 2024, highlighting the urgency for reform.

“These new laws, with their institutional safeguards and digital monitoring platforms, send a strong signal of fiscal discipline and reliability.

“The independence of the emerging Nigerian Revenue Service (NRS), supported by robust performance reporting, will further bolster credibility and reduce the risk premium attached to long-term investments.”

The chamber, however, pointed out that the successful execution of the new tax laws would require close coordination across federal, state, and local governments and robust monitoring and feedback from the private sector.

“We urge 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.

“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,” the LCCI said.

Commenting on the enactments of the new tax form, the Founder/Chief Executive Officer of CPPE, Dr. Muda Yusuf, said that they are another significant policy transition, which deserves to be supported.

Yusuf said that the new tax laws are a major step towards resetting the tax administration in the country.

He said that some of the immediate and expected outcomes and impact of these laws include the following:

“Abrogation of archaic tax laws which are out of tune with current economic realities.

“Improvement in tax administration leveraging more on technology.

“Streamlining the number of taxes and multiple levies.

“Enhancement of revenue performance and boosting fiscal consolidation.

“Better revenue outcomes would hopefully improve government capacity to fund infrastructure and improve productivity of economic players.

“Improved revenue outcomes should also result in fiscal deficit reduction and strengthening of macroeconomic stability.

“Expanded concessions to small businesses and low-income earners.”

He, however, emphasised that no reform or legislation is perfect and asked the government to be humble enough to tweak the legislations if and when necessary, without compromising the fundamentals of the tax reform.

Yusuf said: “The reality is that reform is a journey, not a destination.  Which is why reviews may be necessary in the light of experience.

“Over the six months transition period, there should be robust framework for a seamless implementation of the laws.  

“The implementation consultative processes should be very comprehensive to avoid disruptions to the fiscal operations of government.”