New tax laws will drive organic business growth – NECA

The newly enacted tax reform laws will foster organic growth for businesses across Nigeria, according to the Nigeria Employers’ Consultative Association (NECA), which welcomed the legislation as a long-overdue breakthrough in easing the country’s tax burden and boosting economic productivity.

“Our immediate response is uhuru, thank God because we’ve been advocating for this for a long time,” Adewale-Smatt Oyerinde, director-general of NECA, said.

“The issue of multiple taxes, levies and fees has plagued the organised private sector for over a decade. Inefficiency in tax collection has also remained a challenge for all stakeholders”, he noted.

The reforms, signed into law by President Bola Tinubu on Thursday, were developed by the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele. The four new laws aim to streamline Nigeria’s tax system, improve revenue generation, and reduce compliance costs for individuals and businesses, especially micro, small and medium-sized enterprises (MSMEs).

Speaking at the NECA’s 4th employment summit in Abuja, Adewale-Smatt Oyerinde said the committee did a solid job crafting the bill. “Now that it has been signed into law, we believe this marks the beginning of real reform”, he added while stressing “actual implementation is where the real work begins.”

He acknowledged that the implementation process will likely present new challenges, but said NECA remains optimistic. “We’re pleased the President signed the laws. For organised businesses, having a harmonised tax regime is encouraging. It allows growth to happen organically, from the bottom up,” he said.