The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has urged President Bola Tinubu’s administration to implement significant tax reforms, including reducing corporate taxes to 19% and pegging the Value Added Tax (VAT) rate at 7.5%.
In a statement signed by NACCIMA’s National President, Dele Kelvin Oye, the association expressed its belief that these changes would foster economic growth and boost government revenue. Oye also emphasized the importance of ensuring that taxpayers do not pay less than the previous year’s tax amount, as a safeguard to protect government revenue.
Currently, the Tax Reform bills before the National Assembly propose gradually increasing VAT rates from 10% in 2025 to 12.5% between 2026 and 2029, with a rise to 15% from 2030 onward. However, NACCIMA has called for a more sustainable approach, with VAT capped at 7.5%.
Oye also voiced concerns over the ongoing disconnect between federal and state governments regarding revenue sharing. He pointed out that public disagreements often play out in the media, focusing on how to secure a larger share of taxpayer funds without considering the interests of the public and taxpayers.
“The current media engagement between federal and state governments only further confirms the disconnect described above,” Oye stated, urging for more genuine dialogue that prioritizes the interests of the public.
The statement highlighted the need for reforms in other critical sectors such as telecommunications, which contribute significantly to government revenues. Oye stressed that without targeted reforms in these sectors, the potential for further growth and increased tax revenue would remain untapped.
Additionally, NACCIMA called for better inclusion of the private sector in tax reform discussions. Sectors like aviation, telecommunications, manufacturing, and operators in Free Trade Zones should be engaged in meaningful dialogue to ensure that reforms benefit all parties involved. Oye criticized the current approach of committees that “lecture taxpayers,” which has not yielded positive results.
NACCIMA proposed that the outcomes of tax reform discussions should be forwarded to the National Assembly through the Office of the Attorney General, as directed by the President, to ensure better coordination and more effective policy implementation.
The proposed 2024 Tax Reform Bills are based on recommendations from the Presidential Committee on Tax Reform, chaired by fiscal policy expert Mr. Taiwo Oyedele. The bills include the Nigeria Tax Bill (NTB), Nigeria Tax Administration Bill (NTAB), Nigeria Revenue Service Establishment Bill (NRSEB), and Joint Revenue Board Establishment Bill (JRBEB).
NACCIMA’s call for tax reforms highlights the need for a balanced, inclusive approach to taxation that supports both economic growth and the long-term sustainability of government revenues.
