Nigeria: Oyedele, LCCI Endorse Tax Reforms to Unlock Investment and Spur Growth

The Lagos Chamber of Commerce and Industry (LCCI) and the Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, Taiwo Oyedele, have expressed strong support for Nigeria’s new tax laws, describing them as a catalyst for economic growth, increased investment, and job creation.

Speaking at the LCCI 2026 Economic Review and Outlook Conference in Lagos, Oyedele said the reforms were designed to correct long-standing weaknesses in Nigeria’s fiscal and tax framework, which had previously discouraged investment and constrained growth.

According to him, the old system placed excessive pressure on businesses by taxing capital rather than profits. “We had a broken tax system that was not conducive for growth. Even when companies made no profit, they were still required to pay minimum tax, effectively paying out of their capital,” Oyedele said.

He explained that the new tax laws reposition taxation as a tool for growth, allowing businesses to retain more capital for expansion through tax credits and input claims. “If businesses are allowed to reinvest those funds, they can grow, employ more people, and contribute more meaningfully to the economy,” he added.

Key highlights of the reforms include a reduction in corporate income tax from 30% to 25%, the removal of minimum tax, and the ability for businesses to reclaim Value Added Tax (VAT) paid on assets and services. Oyedele described VAT recovery as one of the most significant reliefs, particularly for service-based businesses.

“From January, VAT paid on assets and services can now be claimed back. This is a major win for businesses,” he said.

The reforms also aim to ease the burden on small businesses and low-income earners. Oyedele noted that companies with annual turnover below ₦100 million would be exempt from certain taxes, while the monthly tax-free threshold for individuals has increased to about ₦100,000.

“The economy is under strain because of excess tax burden. These reforms are about letting people and businesses breathe,” he said.

Oyedele further explained that tax harmonisation across federal, state, and local governments would reduce the number of taxes and levies paid by businesses to single digits, improving competitiveness and reducing compliance complexity. He added that part of the tax proceeds would support the Nigerian Education Loan Fund (NELFUND) to expand access to education and reduce poverty.

On government revenue, Oyedele said growth would be driven primarily by economic expansion rather than higher tax rates. He highlighted the role of technology, electronic invoicing, and risk-based audits in reducing tax evasion while limiting harassment of compliant taxpayers. The establishment of an Office of the Tax Ombudsman, he added, would further protect taxpayers, especially small businesses.

“This reform is about economic growth, shared prosperity, and job creation,” he said.

LCCI President Leye Kupoluyi also welcomed the reforms, describing them as largely positive for businesses and citizens. He encouraged business owners to view the new tax regime as a growth enabler rather than a burden.

“Over 98% of Nigerians will not be negatively affected by these tax changes,” Kupoluyi said. “For most people, it means more disposable income. Even for the top earners, any increase in personal tax is likely to be offset by gains from lower corporate taxes.”

Kupoluyi added that recent reforms have strengthened Nigeria’s economic foundations, pointing to improved foreign exchange stability and external reserves. He projected economic growth of six to seven per cent in 2026, up from 4.2% in the previous year, while stressing that inclusive growth and poverty reduction must remain central to policy.

“The strength of a nation lies in how it supports its weakest links,” he said.

Also speaking at the event, Dr Chinyere Almona, Director-General of the LCCI, said the outlook for 2026 is increasingly positive as recent reforms begin to take effect. She noted that businesses are starting to experience improvements in the ease and cost of doing business.

“We’ve endured significant reform-related pain, but those reforms are now taking root,” Almona said. She called for more pro-business regulatory policies and stronger engagement between regulators and the private sector to sustain momentum and ease remaining challenges.