LCCI says tax reform laws will boost trade competitiveness

The Lagos Chamber of Commerce and Industry (LCCI) says the tax reform laws will boost trade competitiveness.

In a statement on Thursday, Chinyere Almona, director-general (DG) of the LCCI, commended the federal government for enacting the tax reform bills.

On Thursday, President Bola Tinubu signed the four tax reform bills into law.

The bills include the Nigeria tax bill (ease of doing business), Nigeria tax administration bill, Nigeria Revenue Service (establishment) bill, and the Joint Revenue Board (establishment) bill.

According to Almona, the reforms, passed after extensive stakeholder consultations, mark a significant milestone in Nigeria’s journey toward a more transparent, efficient, and growth-aligned fiscal framework.

“From a macroeconomic perspective, the reforms are expected to impact four major areas: inflation, trade competitiveness, tax compliance, and investor confidence. Unifying Nigeria’s complex and fragmented tax laws and the digital and institutional upgrades in the bills give the private sector a better platform to grow and compete,” the DG said.

“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 40–60 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.

“The government’s fiscal projections anticipate headline inflation falling to 15% by end-2026, compared to 27.6% in May 2025. With essential goods and services now exempt from VAT, we expect this move to ease the cost of living for millions of Nigerians.

“The tax laws will also significantly improve Nigeria’s trade competitiveness.  With the introduction of a unified filing system and streamlining state and federal tax processes, businesses could see compliance time fall by up to 40%, effectively reducing transaction costs and supporting Nigeria’s export competitiveness under the African Continental Free Trade Area (AfCFTA).”

She said a more efficient tax structure is vital for attracting foreign direct investment (FDI).

LCCI PROJECTS N3.2TRN NON-OIL REVENUE GROWTH IN 2027

Almona noted that the country’s tax-to-GDP ratio, currently at 7.9 percent, is among the lowest in sub-Saharan Africa.

The LCCI DG said new initiatives such as a single taxpayer ID, risk-based audit protocols, faster refund mechanisms, and the office of the tax ombudsman will help broaden the tax base while reducing the informal sector’s dominance.

“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 towards 12% by 2027,” she said.

The director-general said the reforms would offer the predictability and transparency that both local and foreign investors seek, noting that institutional safeguards, digital monitoring tools, and the autonomy of the new Nigerian Revenue Service (NRS), formerly called FIRS, will bolster credibility and reduce the risk associated with long-term investments.

However, she noted that enacting the laws is only the first step.

“Successful execution will require close coordination across federal, state, and local governments and robust monitoring and feedback from the private sector,” the DG said.

Almona urged the immediate rollout of a public-facing implementation roadmap, starting with pilot e-tax systems in high-volume states such as Lagos, Rivers, and Kano.

The LCCI boss also commended the presidential fiscal policy and tax reforms committee for its work in drafting and publicising the new tax bills, describing the stakeholder engagement process as a template for driving conversations on Nigeria’s economy and political cohesion.

The DG said the six-month window before full implementation in January 2026 should allow enough time to run pilot phases and ensure all necessary structures are engaged for optimal performance.