The Lagos Chamber of Commerce and Industry (LCCI) has commended the Federal Government for enacting four different tax reforms laws.
The commendation was contained in a press statement signed by the Chamber’s Director-General, Dr Chinyere Almona, on Friday.
The newly enacted laws include: 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.
Almona recalled that the bills, passed after extensive stakeholder consultations, mark a significant milestone in Nigeria’s journey toward a more transparent, efficient, and growth-aligned fiscal framework.
The established: “From a macroeconomic perspective, the reforms are expected to impact four major areas: inflation, trade competitiveness, tax compliance, and investor confidence. 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 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 40–60 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.
“The government’s fiscal projections anticipate headline inflation falling to 15% by end-2026, compared to 27.6% 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 LCCI boss affirmed that the tax laws will also significantly improve Nigeria’s trade competitiveness, adding that 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%, effectively reducing transaction costs and supporting Nigeria’s export competitiveness under the African Continental Free Trade Area (AfCFTA).
Almona asserted that a better streamlined tax system is a factor in attracting foreign direct investment (FDI).
The statement reads further: “Tax compliance is another area where the reforms are poised to deliver tangible gains. Nigeria’s tax-to-GDP ratio, currently at 7.9%, is among the lowest in sub-Saharan Africa.
“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.
“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 towards 12% by 2027.
“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.
“We recognize that passing legislation is only the first step. Successful execution will 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.”
Against this background, LCCI commended the work done by the Presidential Fiscal Policy and Tax Reforms Committee in drafting and presenting the new tax bills on different platforms, which created well-deserved publicity and awareness.
The Chamber stressed that the robust and aggressive engagement with relevant stakeholders is a template required for “critical conversations regarding our nation’s economy and political cohesion”.
With the latest development, the Chamber anticipated that 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 Eagle Online reports that President Bola Tinubu assented to the new tax laws on Thursday, declaring it will significantly transform tax administration in the country, leading to increased revenue generation.
