NESG calls for amendment of tax laws, PIA, others

The Nigeria Economic Summit Group (NESG) has called on the National Assembly to amend the Nigeria Tax Act 2015, the Petroleum Industry Act (PIA), and the Electricity Act 2023 to improve the national business environment.

This appeal followed the Abuja presentation of a policy brief by the Ernest Shonekan Centre for Legislative Reforms and Economic Development, which identified several laws requiring immediate revision.

Among these are the Nigerian Oil and Gas Content Development Act 2010, the Environmental Impact Assessment Act, and the Banks and Other Financial Institutions Act (BOFIA).

A primary concern for the NESG is the harmonization of the Nigeria Tax Act with the CAMA Act, specifically regarding the definition of small businesses.

The group argues that aligning these definitions is essential because of the significant contributions small enterprises make to GDP, employment, and exports.

The group also proposed amending Section 20(4) of the Tax Act to allow businesses to deduct expenses incurred in foreign currency at official exchange rates.

They also cautioned that the implementation of digital fiscal tools under Section 157 must be scrutinized to protect micro, small, and medium-scale enterprises from prohibitive compliance and cybersecurity costs.

Regarding the Electricity Act 2023, the NESG emphasized the importance of collaboration between distribution companies and state governments to create a business-friendly ecosystem.

The group suggested that states should work with these companies to tackle challenges such as energy theft, inadequate metering, and infrastructure protection while offering incentives to attract investors.

They specifically noted that state governments could help bridge the affordability gap for metering in low-income and rural areas, which would ultimately improve tariff collection and the overall viability of the power sector.

While the PIA and the Electricity Act are viewed as landmark reforms designed to modernize fiscal management and decentralize regulation, the NESG noted that their simultaneous implementation has created regulatory overlaps.

Stakeholders like Mr. Adetayo Adegbemle of PowerUp Nigeria and Mazi Colman Obasi of OGSPAN have acknowledged that while these laws provided a strong starting point, refinement is necessary to ensure policy alignment.

They stressed that beyond legislative amendments, the effectiveness of these reforms will ultimately depend on consistent execution and clarity for investors.