The Nigeria Employers’ Consultative Association (NECA) has endorsed the Federal Government’s plan to commence the implementation of the new tax law on January 1, 2026, while warning that its success will depend on effective coordination, sustained stakeholder trust, and sensitivity to the fragile condition of Nigerian businesses, particularly small and medium-scale enterprises (SMEs).
Speaking at NECA’s end-of-year media engagement held on Tuesday, December 30, in Lagos, the Director-General and Chief Executive of the association, Mr. Adewale-Smatt Oyerinde, said the proposed tax reform must confront the long-standing challenge of multiple and overlapping taxes that continue to stifle business growth across the country.
Mr. Oyerinde observed that while 2026 could mark a critical turning point for fiscal and monetary reforms, the approach of the 2027 general elections could undermine effective implementation. He warned that political activities are likely to dominate governance priorities from early 2026, stressing that tax reforms require consistency, discipline, and sustained policy focus to succeed.
According to him, the true test of the new tax framework should be its impact on business survival, expansion, and job creation. While acknowledging the resilience of Nigerian businesses amid currency volatility, high inflation, insecurity, and regulatory hurdles, he cautioned that endurance should not be confused with sustainability.
“The Nigerian spirit is not a substitute for sound policy. Doggedness alone cannot keep businesses alive in a hostile operating environment,” Mr. Oyerinde said.
He further noted that the proliferation of levies, conflicting regulations, and policy inconsistencies among ministries, departments, and agencies continue to weaken productivity, erode investor confidence, and threaten employment—problems the tax reform is expected to address.
Commenting on the controversies surrounding the tax reform bill, Mr. Oyerinde described the process as imperfect but necessary. He defended the ongoing stakeholder engagements involving the National Assembly and the Presidential Committee on Tax Reform, while conceding that significant gaps remain.
“No tax reform anywhere in the world is perfect at first contact. What matters is the willingness to consult, amend, and correct,” he said.
He welcomed the scrutiny of the bill by the House of Representatives, describing it as an essential democratic safeguard rather than an attempt to derail the reform process. According to him, continuous legislative oversight would help ensure that the final law aligns with Nigeria’s economic realities.
Mr. Oyerinde also criticised the approach of some regulatory agencies that pursue narrow mandates without regard for broader economic consequences. He warned that sudden policy reversals, new charges, and regulatory bans could wipe out investments worth hundreds of billions of naira and severely damage investor confidence.
“If investors cannot predict policy stability over a 10-year horizon, capital will simply go elsewhere,” he said.
NECA, he added, expects the tax reform to simplify compliance, eliminate duplication, and harmonise incentives across government institutions, rather than impose additional enforcement pressures or force businesses into the informal economy.
