…emphasised that this will reduce many burdens on SMEs
The Nigeria Employers Consultative Association (NECA) has thrown its support behind the FG’s insistence on the commencement of the new tax law from January 1, 2026.
However, it cautioned that the success of tax reforms will depend on coordination, stakeholder trust and sensitivity to the delicate position of businesses – especially small and medium scale enterprises (SMEs).
Speaking at NECA’s year-end media event in Lagos on Tuesday, December 30, NECA Director General/Chief Executive, Adewale-Smat Oyerinde, said the reform should ultimately address one central issue: reducing the multiple and overlapping tax burdens affecting Nigerian businesses.
Also read: 5 key events that shape Nigeria's tax landscape in 2025
Oyerinde said that while 2026 could be a turning point for Nigeria's financial and monetary reforms, the proximity of the 2027 general elections poses a major risk to effective implementation.
“Politics will naturally take center stage from January,” he warned, stressing that economic reforms—especially tax reforms—require consistency, discipline and sustained governance focus.
Oyerinde said the tax structure should be evaluated by its impact on business survival, growth and job creation.
He acknowledged the resilience of Nigerian enterprises amid currency instability, high inflation, insecurity and regulatory constraints, but cautioned against mistaking stamina for stability.
“The Nigerian sentiment is no substitute for good policy,” he said. “Dominance alone cannot sustain businesses in a hostile operating environment.”
According to him, the proliferation of levies, conflicting rules and policy inconsistencies across ministries, departments and agencies is undermining productivity, undermining investor confidence and putting employment at risk – a result the reforms are meant to reverse.
Addressing the controversies surrounding the tax reform bill, Oyerinde described the process as imperfect but necessary. He defended the ongoing engagement of stakeholders associated with the National Assembly and the Presidential Committee on Tax Reform, while acknowledging that significant shortcomings remained.
“No tax reform anywhere in the world is prima facie good,” he said. “What matters is consultation, modification and willingness to improve.”
He welcomed the House of Representatives' scrutiny of the bill, calling it a healthy democratic safeguard rather than an attempt to derail the reform. He argued that continued legislative oversight would help align the final legislation with Nigeria's economic realities.
Oyerinde also criticized the tendency of some regulatory agencies to pursue narrow mandates without considering broader economic consequences. He cited sudden policy changes, new fees and restrictions that risk wiping out investments worth hundreds of billions of naira and sending negative signals to investors.
“If investors cannot predict policy stability over a 10-year horizon, capital will move elsewhere,” he warned.
NECA hopes that rather than introducing new enforcement pressure or pushing businesses into the informal economy, the tax reform will simplify compliance, eliminate duplication and harmonize incentives across government institutions, he said.
