Lawson Lawson

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has stated that the proposed tax reform bill will significantly ease the financial burden on small businesses and foster a more growth-friendly environment. SMEDAN’s Director-General, Mr. Charles Odii, made this known during a stakeholder engagement on tax reforms held on Friday in Abuja. The event, themed “Understanding the Tax Reform Bills: Benefits and How MSMEs Can Maximise Tax,” brought together key players in the MSME sector. Odii explained that the bill, once passed, would eliminate multiple taxations and exempt businesses earning less than N100 million annually from major taxes such as VAT, CIT, and PAYE. “Nigeria has 39.6 million MSMEs, and the first step toward their success is proper sensitisation,” Odii said. “Many small business owners don’t yet realise that this reform could free them from several taxes.” He praised the House of Representatives for passing the bill and called on the Senate to do the same, stressing that when small businesses flourish, the broader economy benefits. Dr. Abdulrashid Yerima, President of the Nigeria Association of Small and Medium Enterprises (NASME), also commended the reforms, noting that they directly address long-standing challenges like multiple taxation and arbitrary levies from various government agencies. “Our members have struggled with import duties, turnover levies, and random charges from state and local governments,” Yerima said. He urged for robust enforcement of the reforms to prevent unauthorised tax collections. The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, highlighted the need to overhaul Nigeria’s tax system to promote economic growth and reduce burdens on small businesses. He revealed that the committee’s proposals include eliminating VAT and withholding tax for businesses with annual revenues below N100 million and exempting salaries up to N100,000 per month from PAYE tax. “These reforms are not just about revenue collection,” Oyedele said. “They’re designed to reduce administrative burdens and give small businesses room to grow and innovate.” He stressed the importance of data-driven policymaking, citing collaboration with organisations like the Faith Institute to gather reliable data on MSME challenges. Mrs. Linda Omubo-Pepple, SMEDAN’s Director of Partnership and Coordination, added that collaboration between government and business stakeholders remains crucial in shaping effective tax policies. “The impact of these reforms will be felt across industries, and open dialogue is key,” she said. The engagement session, attended by key MSME stakeholders and government representatives, allowed business owners to ask questions and gain a clearer understanding of the reform bill’s provisions. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has highlighted that businesses in Nigeria face one of the highest tax burdens globally. Speaking at a grand reception in Lagos organized by the Student Pye Alumni (Class of 1990–1994), Oyedele revealed that Nigeria ranks among the top 10 countries with the highest corporate tax burdens. He stressed the urgent need for reform, particularly in a country striving to attract both local and foreign investment. The event honored the 60th President of the Institute of Chartered Accountants of Nigeria (ICAN), Chief Davidson Chijioke Alaribe, and the Group Managing Director of First Holdco Plc, Adebowale Oyedeji. According to a statement from the organizers, Student Pye Alumni includes members who are fellows of ICAN and the Chartered Institute of Bankers of Nigeria (CIBN). Delivering a keynote address on “Understanding the Nigeria Tax Reforms,” Oyedele called for collaboration between government agencies and stakeholders on the proposed tax reform bill currently before the National Assembly. He emphasized the importance of allowing tax deductions for startup expenses incurred up to six years before a business begins operations — a move he believes would encourage entrepreneurship and support business growth. “We impose heavy tax burdens on businesses of all sizes,” Oyedele stated. “Nigeria ranks among the top 10 highest in corporate tax globally, yet we desperately need investment. We tax poverty, capital, and investment itself. We even collect taxes in advance, regardless of whether businesses ultimately make a profit.” He advocated for exempting small businesses from certain taxes, reducing the tax burden on larger enterprises, and harmonizing tax structures to drive economic growth and protect low-income earners. He urged all stakeholders to rally behind the bill as a foundation for transforming the Nigerian economy. The event was attended by former school directors and the Commissioner for Finance of Abia State, Uwaoma Ukandu, who represented the Governor of Abia State, Alex Otti. In their closing remarks, the Student Pye Alumni congratulated the honorees and encouraged them to continue demonstrating excellence and resilience. They also called on Micro, Small, and Medium Enterprises (MSMEs) across Nigeria to actively engage in ongoing tax reform discussions. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, has announced that the agency is re-strategizing to boost voluntary tax compliance among the public. He made this known at the West Africa Tax Administrators Forum (WATAF) Country Correspondents Conference and Training for Heads of Corporate Communications, held yesterday in Abuja. Speaking at the event, Dr. Adedeji emphasized the critical role of effective communication in tax administration. “As Country Correspondents and Heads of Corporate Communications, you are the frontline ambassadors of our tax institutions — responsible for shaping narratives, clarifying policies, and fostering voluntary compliance,” he said. He also noted that the WATAF Council would deliberate on institutional sustainability, review progress reports, and oversee the operations of the WATAF Secretariat. Dr. Adedeji highlighted Nigeria’s leadership in promoting international and regional tax cooperation. “Our country has been instrumental in advancing the West African Tax Administration Forum, offering technical assistance and capacity-building to member states,” he stated. He reaffirmed FIRS’s commitment to supporting tax policy development and capacity-building initiatives, both in Nigeria and across West Africa, stressing that domestic resource mobilization is key to economic growth. The FIRS Chairman urged participants to engage actively, build stronger networks, and apply the knowledge gained to strengthen tax systems. He also commended WATAF for its consistent efforts in fostering collaboration and enhancing capacity among West African tax administrations For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

The House of Representatives on Tuesday passed four tax reform bills originally submitted to the National Assembly by President Bola Tinubu in October 2024. Last Thursday, the House had reviewed and approved the report of the Committee on Finance, which addressed key recommendations, especially on contentious issues like Value Added Tax and inheritance tax. With the House’s approval secured, attention now shifts to the Senate, where the bills are expected to pass before being transmitted to the President for assent. During Tuesday’s plenary, House Leader Julius Ihonvbere moved for the third and final reading of the bills. He said: “Mr Speaker and Honourable colleagues, A bill for an Act to provide for the assessment, collection, and accounting of revenue accruing to the Federation, Federal, State, and Local Governments; prescribe the powers and functions of tax authorities; and for related matters, be read for the third time. A bill for an Act to repeal the Federal Inland Revenue Service (Establishment) Act No. 13, 2007, and enact the Nigeria Revenue Service (Establishment) Bill to establish the Nigeria Revenue Service, charged with the powers of assessment, collection, and accounting of revenue accruing to the Federation, and for related matters, be read for the third time. A bill for an Act to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud for the harmonisation, coordination, and settlement of revenue administration disputes in Nigeria, and for related matters, be read for the third time. A bill for an Act to repeal certain existing tax laws, consolidate the legal framework relating to taxation, and enact the Nigeria Tax Act to provide for the taxation of income, transactions, and instruments, and for related matters, be read for the third time.” All four bills were passed with overwhelming support, under the presiding leadership of Speaker Tajudeen Abbas. Once the Senate passes its versions of the bills — and both chambers harmonise any differences — they will be sent to the President for assent. Notably, the process faced resistance from some lawmakers, particularly from the North, who, aligning with their governors, called for the withdrawal of the bills for further consultation. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

On Thursday, Nigeria’s House of Representatives approved significant amendments to four tax reform bills submitted by President Bola Tinubu in October. The bills—the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill—aim to modernize tax collection, distribution, and governance across federal, state, and local levels. During the plenary session presided over by Speaker Abbas Tajudeen, lawmakers addressed critical issues such as inheritance tax, Value Added Tax (VAT) rates, revenue distribution, and the continued funding of agencies like TETFUND, NASENI, and NITDA from development levies. The amendments followed a clause-by-clause review led by James Abiodun Faleke, Chairman of the Committee on Finance. Key Amendments and Provisions The bills, now passed by the lower chamber, will proceed to the Senate for further approval before being sent to President Tinubu for final assent. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.