Clear tax reform key to easing enterprise strain — LCCI

The Lagos Chamber of Commerce and Business says efficient and clear implementation of the Tax Reform Act is important to simplifying compliance, lowering the burden on productive enterprises and broadening the tax base with out stifling financial progress.

The physique referred to as on the Federal Authorities to make sure its implementation.

In a press release reviewing the nation’s financial efficiency in 2025 and outlining priorities for 2026, the Chamber’s President, Leye Kupoluyi, famous that fiscal reforms gained momentum with the signing of the Tax Reform Act in June 2025, which consolidated a number of tax legal guidelines right into a unified framework scheduled to take impact from 1 January 2026.

“Efficient and clear implementation of the Tax Reform Act is crucial to simplify compliance, cut back the burden on productive enterprises, and broaden the tax base with out stifling progress,” Kupoluyi acknowledged.

The LCCI’s assertion follows the current tv interview by the Chairman of the Presidential Committee on Fiscal Coverage and Tax Reforms, Taiwo Oyedele, who clarified that Nigerians wouldn’t face automated deductions from private financial institution accounts as the brand new tax legal guidelines take impact on 1 January 2026.

The PidomNigeria reported that Oyedele affirmed that the brand new tax system relies on self-declaration and never direct debits. He mentioned, “Individuals assume that the federal government will debit their financial institution accounts from subsequent yr, and the way they even got here up with that, I do not know. No person will debit your account for any quantity you switch. Whether or not it’s N1bn or N1,000, on the finish of the yr, you inform the federal government your self.”

The chamber famous that Nigeria entered 2026 after a yr of “robust reforms, financial resilience, and cautious stabilisation.” It referred to 2025 as marked by modest progress restoration, constrained fiscal execution and rising issues over debt sustainability.

It acknowledged that troublesome changes adopted the elimination of gasoline subsidies, overseas trade liberalisation and aggressive financial tightening, which imposed “vital short-term ache on households and companies”, however added that the measures laid the inspiration for restoring macroeconomic credibility and rebuilding investor confidence.

Reviewing financial indicators, the LCCI famous that the expansion of the Gross Home Product strengthened modestly in 2025, with output increasing by 3.98 per cent within the third quarter, pushed largely by the companies sector, which now accounts for over half of nationwide output.

It added that Nigeria’s exit from the Monetary Motion Job Power gray listing marked a serious reputational increase, bettering entry to world capital, as mirrored in an oversubscribed Eurobond issuance and a optimistic score by S&P World.

Nonetheless, the chamber warned that progress remained inadequate to elevate incomes or considerably cut back poverty. “This efficiency stays beneath Nigeria’s inhabitants progress fee, underscoring that present progress will not be inclusive,” the assertion mentioned.

The LCCI additionally criticised the 2025 finances implementation, stating that it didn’t ship the dimensions of fiscal stimulus wanted to help restoration. As of the third quarter of 2025, income stood at N18.6tn, about 61 per cent of the goal, whereas expenditure reached N24.66tn, or 60 per cent.

It expressed concern that capital finances implementation remained weak, with solely N3.10tn, representing 17.7 per cent, launched by Q3, limiting infrastructure supply and personal sector confidence.

On public finance, the chamber described Nigeria’s debt place as troubling, noting that whole public debt elevated to about N152.39tn in June 2025, whereas debt servicing consumed over 65 per cent of presidency income.

“This severely limits the federal government’s capability to fund infrastructure, social companies and growth-enhancing investments,” it mentioned, including that income growth and prudent borrowing had been “non-negotiable”.

The LCCI famous that companies continued to face main headwinds in 2025, together with excessive inflation, overseas trade volatility, insecurity in food-producing areas, persistent energy shortages and a number of taxation.

Waiting for 2026, the chamber urged stronger coordination between fiscal and financial authorities to entrench disinflation and regularly ease rates of interest, boosting non-public sector credit score.

It additionally referred to as for deeper confidence within the overseas trade market, accelerated infrastructure growth by way of public-private partnerships and insurance policies that intentionally promote inclusive progress.

The LCCI acknowledged that 2025 marked a turning level from disaster administration to cautious stabilisation, including that “the problem for 2026 is to maneuver past stability and translate macroeconomic reforms into broad-based prosperity.”