Abuja Chamber of Commerce commends President Tinubu for signing tax reforms into law, urges full implemention for business growth

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The Abuja Chamber of Commerce and Industry (ACCI) has commended President Bola Tinubu for signing into law four landmark tax reform bills.

It described the move as a bold and strategic step toward enhancing the ease of doing business, attracting investment, and establishing a fairer and more transparent tax regime in Nigeria.

The President of the ACCI, Chief Emeka Obegolu, SAN, PhD in a statement described the reforms as timely and visionary.

According to him, the ACCI noted that the tax reforms come at a crucial time when Nigeria is striving to build a more inclusive and investment-friendly economic climate.

It noted that the business community fully supports the newly introduced policies, which are expected to reposition the country’s tax framework for fiscal sustainability and inclusive growth.

The newly enacted legislation includes 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.

Chief Obegolu stressed that these laws aim to harmonise Nigeria’s tax system, streamline administration across federal, state, and local governments, eliminate multiple taxation, and improve compliance.

According to ACCI, the reforms align with its long-standing advocacy for policies that foster entrepreneurship, attract investment, and drive sustainable economic development.

One of the most transformative aspects of the reform is the exemption of small businesses with an annual turnover below ₦50 million from Company Income Tax (CIT), along with simplified filing requirements that eliminate the need for audited accounts.

The President noted that this provision is expected to significantly reduce the compliance burden on Small and Medium Enterprises (SMEs), encourage reinvestment, and promote job creation.

“The upward revision of the CIT exemption threshold from ₦25 million to ₦50 million clearly demonstrates an intent to support and empower small businesses,” the Chamber stated.

“It is a progressive policy that recognises the challenges faced by SMEs and encourages a culture of growth and innovation,” he said.

The ACCI also applauded the planned reduction in corporate tax rates for larger companies, from the current 30% to 27.5% in 2025, and 25% in subsequent years, as a strategic move to boost investor confidence and enhance Nigeria’s economic competitiveness.

However, the Chamber expressed concern over certain provisions affecting professional service providers, calling for clarity and equitable enforcement to prevent unintended consequences such as increased informality or reduced tax compliance.

Furthermore, the ACCI welcomed the retention of the Value Added Tax (VAT) at 7.5% and the exemptions granted for essential goods and services, including basic food items, pharmaceuticals, medical services, electricity, and education, emphasising that these measures reflect the administration’s commitment to protecting low-income earners.

Of particular significance is the repeal of the Federal Inland Revenue Service (FIRS) Act and the establishment of the Nigeria Revenue Service (NRS), a more autonomous and performance-driven tax authority.

The creation of the Joint Revenue Board is also a welcome development aimed at improving coordination among tax authorities across all tiers of government.

For the business community, the elimination of multiple taxation and the introduction of a unified tax enforcement system are critical steps toward improving the overall business environment and enhancing Nigeria’s global economic standing, Chief Obegolu stressed.

“These tax reforms represent a bold and commendable shift toward building a system that works for everyone, especially the underserved sectors of our economy,” the Chamber noted.

“However, the success of these reforms will depend on strong political will and consistent implementation. We call on President Tinubu and all relevant stakeholders to remain committed and courageous in executing these transformative changes.”

ACCI reaffirmed its commitment to supporting the federal government through constructive policy dialogue, technical assistance, and continuous public enlightenment to ensure the reforms achieve their intended objectives.

“As a leading voice of the private sector, ACCI will continue to advocate for policies that promote business growth, encourage formalisation, and create a level playing field for all businesses, especially SMEs, which remain the backbone of Nigeria’s economy,” the statement noted.