LCCI Applauds Government’s Tax Reform Legislation
The Lagos Chamber of Commerce and Industry (LCCI) has praised the federal administration’s recent enactment of comprehensive tax reform legislation, viewing it as a crucial step toward economic transformation.
Dr. Chinyere Almona, Director General of the LCCI, outlined her expectations for these reforms in a statement issued Friday from Lagos. She identified four key economic sectors that should benefit from the newly enacted legislation.
The reform package, which received presidential assent from Bola Tinubu on Thursday, encompasses several critical pieces of legislation: the Nigeria Tax Bill focused on business facilitation, the Nigeria Tax Administration Bill, legislation establishing the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill.
According to Almona, the reforms will influence inflation dynamics, enhance trade competitiveness, improve tax compliance rates, and strengthen investor confidence across the economy.
Following comprehensive discussions with various stakeholders, these legislative changes represent a pivotal moment in Nigeria’s evolution toward more transparent and efficient fiscal governance that supports economic growth.
The consolidation of Nigeria’s previously fragmented tax legislation, combined with the technological and institutional improvements outlined in the bills, creates enhanced opportunities for private sector expansion and competitive positioning.
“The potential impact of inflation is twofold: in the short term, as businesses re-price, the broader tax net and initial compliance adjustments may trigger a slight increase in core inflation, estimated between 40 and 60 basis points.
“However, in the medium term, the reduction of tax inefficiencies and a shift from monetary financing to sustainable revenue should help ease price pressures.
“With essential goods and services now exempt from Value Added Tax (VAT), we expect this move to ease the cost of living for millions of Nigerians,” she stated.
The LCCI chief emphasised that these legislative changes will substantially enhance Nigeria’s position in international trade competition.
She observed that the implementation of consolidated filing procedures and harmonized tax processes across government levels could reduce business compliance timeframes by as much as 40 percent.
This development promises to lower operational costs while strengthening Nigeria’s export capabilities within the African Continental Free Trade Area (AfCFTA) framework.
“Tax compliance is another area where the reforms are poised to deliver tangible gains.
“Nigeria’s tax-to-Gross Domestic Product (GDP) ratio, currently at 7.9 per cent, is among the lowest in sub-Saharan Africa.
“With full implementation, the LCCI projects an increase in non-oil tax revenues by ₦3.2 trillion over the next two years, pushing the tax-to-GDP ratio toward 12 per cent by 2027,” she stated.
Almona highlighted how the new regulatory framework, featuring institutional protections and digital oversight mechanisms, demonstrates the government’s commitment to fiscal responsibility and dependability.
The autonomous structure of the proposed Nigerian Revenue Service, strengthened by comprehensive performance accountability measures, should enhance credibility and minimize investment risk premiums for long-term projects.
“We recognise that passing legislation is only the first step.
“Successful execution will require close coordination across federal, state, and local governments, as well as 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 full implementation in January 2026 should provide sufficient space for pilot phases and ensure all gears are engaged for optimal performance,” Almona added.
