The Lagos Chamber of Commerce and Industry has emphasised that the effective and transparent implementation of the Tax Reform Act is crucial for simplifying compliance, easing the burden on productive businesses, and expanding the tax base without hindering economic growth.
The Chamber urged the Federal Government to ensure the Act is fully implemented.
In a statement reviewing Nigeria’s economic performance in 2025 and highlighting priorities for 2026, LCCI President Leye Kupoluyi noted that fiscal reforms gained momentum following the signing of the Tax Reform Act in June 2025, which consolidated multiple tax laws into a single framework set to take effect from 1 January 2026.
“Effective and transparent implementation of the Tax Reform Act is essential to simplify compliance, reduce the burden on productive enterprises, and broaden the tax base without stifling growth,” Kupoluyi stated.
The LCCI’s statement comes after a recent television interview with Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, who reassured Nigerians that the new tax laws taking effect on 1 January 2026 would not involve automatic deductions from personal bank accounts.
It was earlier reported that Oyedele had emphasized the system will operate on self-declaration rather than direct debits.
He said, “People think that the government will debit their bank accounts from next year, and how they even came up with that, I have no idea. Nobody will debit your account for any amount you transfer. Whether it’s N1bn or N1,000, at the end of the year, you tell the government yourself.”
The chamber noted that Nigeria entered 2026 after a year of “tough reforms, economic resilience, and cautious stabilisation.”
The Chamber observed that Nigeria entered 2026 following a year of “tough reforms, economic resilience, and cautious stabilization.”
It described 2025 as a year marked by modest growth recovery, limited fiscal execution, and mounting concerns over debt sustainability.
The Chamber acknowledged that difficult adjustments—stemming from the removal of fuel subsidies, foreign exchange liberalisation, and aggressive monetary tightening—imposed “significant short-term pain on households and businesses,” but stressed that these measures laid the groundwork for restoring macroeconomic credibility and rebuilding investor confidence.
Reviewing key economic indicators, the LCCI noted that Nigeria’s GDP growth strengthened modestly in 2025, with output expanding by 3.98 per cent in the third quarter, largely driven by the services sector, which now contributes more than half of national output.
It noted that Nigeria’s removal from the Financial Action Task Force grey list provided a significant reputational boost, enhancing access to global capital, as demonstrated by an oversubscribed Eurobond issuance and a favorable S&P Global rating.
However, the Chamber warned that economic growth remained insufficient to raise incomes or meaningfully reduce poverty.
“This performance remains below Nigeria’s population growth rate, underscoring that current growth is not inclusive,” the statement said.
The LCCI also criticised the 2025 budget execution, noting that it fell short of providing the level of fiscal stimulus needed to support recovery. By the third quarter of 2025, revenue totalled N18.6 trillion, about 61 per cent of the target, while expenditure reached N24.66 trillion, or 60 per cent.
The Chamber further expressed concern over weak capital budget implementation, with only N3.10 trillion—representing 17.7 per cent—released by Q3, limiting infrastructure development and dampening private sector confidence.
