The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has called on President Bola Tinubu’s administration to implement tax reforms that will stimulate Nigeria’s economy. It recommends reducing corporate tax to 19% and capping Value Added Tax (VAT) at 7.5%.
NACCIMA’s National President, Dele Kelvin Oye, asserts that lowering corporate tax rates while maintaining a constant VAT rate will boost economic activity, attract investment, and raise government revenue. In order to preserve consistent revenue for the government, he emphasises the necessity of protections to make sure taxpayers do not pay less than their contributions from the prior tax year.
Oye raises concerns about the recurring clashes between federal and state governments over revenue sharing, which often unfold publicly. He criticizes these disputes for ignoring taxpayer interests and calls for improved collaboration and dialogue to resolve these issues effectively.
NACCIMA highlights the need for targeted reforms in key industries like telecommunications, aviation, and manufacturing. The association advocates for a collaborative approach between the private sector and government stakeholders to create a balanced and fair tax system. Oye criticizes current committee efforts, which he says fail to produce meaningful outcomes, and suggests structured engagements that prioritize productive dialogue.
The proposed 2024 Tax Reform Bills aim to reshape Nigeria’s fiscal framework. They include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. These reforms align with broader goals to enhance tax efficiency and ensure long-term economic stability.
NACCIMA stresses that in order to create a tax system that promotes sustainable growth and benefits all parties involved, it is imperative that the private sector be included in these reforms.
