New tax laws ‘ll impact inflation, competitiveness – LCCI

The Lagos Chamber of Commerce and Industry (LCCI) has commended the Federal Government for signing four landmark tax reform bills into Law.

In a statement on Friday in Lagos, LCCI Director General, Dr Chinyere Almona, said the tax reforms were expected to impact four major areas of the Nigerian economy.

Our correspondent recalls that the tax reform bills were signed into law by President Bola Tinubu on Thursday.

They included the Nigeria Tax Bill (Ease of Doing Business); Nigeria Tax Administration Bill; Nigeria Revenue Service (Establishment) Bill and the Joint Revenue Board (Establishment) Bill.

Almona listed the areas of impact to include inflation, trade competitiveness, tax compliance, and investor confidence.

She said the reforms, passed after extensive stakeholder consultations, marked a significant milestone in Nigeria’s journey toward a more transparent, efficient, and growth-aligned fiscal framework.

She added that unifying Nigeria’s complex and fragmented tax laws and the digital and institutional upgrades in the bills gave the private sector a better platform to grow and compete.

“The potential impact of inflation is twofold: in the short term, as businesses re-price, the broader tax net and initial compliance adjustments may trigger a slight increase in core inflation, estimated between 40 and 60 basis points.

“However, in the medium term, the reduction of tax inefficiencies and a shift from monetary financing to sustainable revenue should help ease price pressures.

“With essential goods and services now exempt from Value Added Tax (VAT), we expect this move to ease the cost of living for millions of Nigerians,” she stated.

Almona said the new tax laws would also significantly improve Nigeria’s trade competitiveness.

She noted that with the introduction of a unified filing system and streamlining state and federal tax processes, businesses could see compliance time fall by up to 40 per cent.

She added that the development would effectively reduce transaction costs and support Nigeria’s export competitiveness under the African Continental Free Trade Area (AfCFTA).

“Tax compliance is another area where the reforms are poised to deliver tangible gains.

“Nigeria’s tax-to- Gross Domestic Product (GDP) ratio, currently at 7.9 per cent, is among the lowest in sub-Saharan Africa.

“With full implementation, the LCCI projects an increase in non-oil tax revenues by N3.2 trillion over the next two years, pushing the tax-to-GDP ratio toward 12 per cent by 2027,” she stated.

The director general added that these new laws, with their institutional safeguards and digital monitoring platforms, sent a strong signal of fiscal discipline and reliability.

She said the independence of the emerging Nigerian Revenue Service (NRS), supported by robust performance reporting, would further bolster credibility and reduce the risk premium attached to long-term investments.

“We recognise that passing legislation is only the first step.

“Successful execution will require close coordination across federal, states, and local government areas and robust monitoring and feedback from the private sector.

“We urge the immediate rollout of a public-facing implementation roadmap, beginning with pilot e-tax systems in high-volume states such as Lagos, Rivers, and Kano.

“The next six months before the full implementation in January 2026 should provide sufficient space for pilot phases and ensure all gears are engaged for optimal performance,” Almona added.