The Lagos Chamber of Commerce and Industry has expressed support for the Federal Government following the signing of four critical tax reform bills into law by President Bola Tinubu.
In a statement released Friday in Lagos, the Director General of LCCI, Dr. Chinyere Almona, praised the reforms, describing them as pivotal to transforming four key sectors of the Nigerian economy.
The tax legislation, signed on Thursday, comprises 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.
According to Dr. Almona, the reforms are set to influence inflation trends, enhance trade competitiveness, improve tax compliance, and boost investor confidence.
She emphasized that the newly passed laws, developed through extensive consultation with stakeholders, represent a critical step toward building a transparent, efficient, and growth-driven fiscal environment.
She noted that aligning Nigeria’s previously fragmented tax regulations, alongside technological and institutional improvements embedded in the reforms, offers a more robust platform for private sector development.
“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.
Almona also highlighted the anticipated benefits to Nigeria’s position in global trade. She noted that the simplification of tax processes across federal and state levels, along with a unified filing system, could cut down business compliance time by as much as 40 percent.
This, she said, would make Nigerian exports more competitive, particularly under the African Continental Free Trade Area.
“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 N3.2 trillion over the next two years, pushing the tax-to-GDP ratio toward 12 per cent by 2027,” she stated.
Almona further stated that the new tax laws, with institutional checks and digital oversight mechanisms, signal a commitment to fiscal discipline and predictability.
She added that the Nigerian Revenue Service, envisioned to function independently with strong performance reporting, would enhance credibility and reduce investment risks.
“We recognise that passing legislation is only the first step.
“Successful execution will require close coordination across federal, states, and local government areas 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,” Almona added.
