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.
