The Lagos Chamber of Commerce and Industry (LCCI) has commended President Bola Tinubu for signing into law four major tax reform bills, describing the development as a turning point in Nigeria’s fiscal and economic landscape.
The newly enacted legislation includes 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.
In a statement issued by the Director General of the LCCI, Dr Chinyere Almona, the chamber noted that the reforms, which followed wide-ranging stakeholder consultations, represent a substantial advancement toward a more transparent, streamlined, and growth-oriented tax regime.
Dr Almona explained that the reforms would influence four key macroeconomic areas: inflation, trade competitiveness, tax compliance, and investor confidence.
She noted that by harmonising Nigeria’s previously fragmented tax laws and introducing digital and institutional enhancements, the new legal framework creates a more enabling environment for the private sector to expand and compete.
Discussing inflation, she acknowledged that the broader tax net and early compliance adjustments might lead to a temporary uptick in core inflation, estimated between 40 and 60 basis points, as businesses re-price in the short term. However, over time, improved tax efficiency and a shift from monetary financing to sustainable revenue mobilisation should ease inflationary pressure.
Government fiscal projections, she noted, forecast headline inflation declining to 15 percent by the end of 2026, down from 27.6 percent recorded in May 2025. The exemption of essential goods and services from VAT is also expected to bring relief to the cost of living for millions of Nigerians.
In terms of trade competitiveness, the LCCI said the introduction of a unified tax filing system and the harmonisation of federal and state-level processes could reduce business compliance time by as much as 40 percent.
Almona added that the resulting decrease in transaction costs would improve Nigeria’s standing in global trade and strengthen its position under the African Continental Free Trade Area (AfCFTA).
The LCCI Director General also remarked on the critical improvements to tax compliance mechanisms embedded in the reforms. With Nigeria’s tax-to-GDP ratio standing at just 7.9 percent, among the lowest in sub-Saharan Africa, the reforms offer practical solutions.
These include the establishment of a single taxpayer identification system, risk-based audit procedures, time-bound refund policies, and protective structures such as the Office of the Tax Ombudsman. Collectively, these measures are expected to expand the tax base and reduce the dominance of the informal economy.
Dr Almona projected that with full implementation, non-oil tax revenue could rise by N3.2 trillion over the next two years, potentially increasing the tax-to-GDP ratio to 12 percent by 2027.
She added that the digital tracking platforms and institutional checks introduced by the new legislation send a strong signal of Nigeria’s commitment to fiscal accountability.
However, she cautioned that sustaining the credibility of the reforms would depend heavily on the autonomy of the newly established Nigerian Revenue Service (NRS), supported by transparent performance evaluations. This, she said, would help reduce investment risk and improve long-term economic confidence.
