Reported By Mary Udezue | Edited by: Gabriel Osa
Abuja, Nigeria — The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has welcomed the impending rollout of Nigeria’s new Tax Reform Acts, saying the overhaul will provide significant support and relief for small businesses and help stimulate broader economic growth once the laws take effect in January 2026.
Under the restructured tax regime, a range of measures has been introduced specifically designed to ease financial burdens on smaller enterprises and simplify tax compliance. One of the most notable provisions exempts small companies — defined as those with annual turnover up to ₦100 million and total fixed assets not exceeding ₦250 million — from Companies Income Tax (CIT), Capital Gains Tax (CGT) and the newly introduced Development Levy. This change effectively reduces direct tax liability for most micro, small and medium‑sized firms, allowing them to retain more capital for operations, expansion, and job creation.
The reforms also aim to eliminate overlapping and fragmented levies that previously imposed administrative and financial strains on small businesses, streamlining the tax system and making it less costly to navigate. By consolidating multiple levies into a single Development Levy for larger companies — while shielding smaller firms from such obligations — the new laws seek to reduce compliance costs and bureaucratic hurdles that historically disadvantaged smaller enterprises.
NACCIMA has argued that these tax exemptions and simplifications could encourage more entrepreneurs to formalise their businesses, broaden the tax base over time and foster a more vibrant small business ecosystem. The association has long advocated for policies that support the growth of micro, small and medium‑sized enterprises (MSMEs), which are seen as critical drivers of employment and economic resilience in Nigeria’s private sector. Although the total impact of the reforms is subject to implementation details and future guidance from the Federal Inland Revenue Service (FIRS), NACCIMA and other stakeholders have framed the changes as a positive step toward a more competitive and investor‑friendly tax environment.
According to government projections, nearly 97 percent of small businesses will either be fully exempt from certain taxes or see their liabilities significantly reduced under the new system, a move intended to shift the tax burden away from vulnerable enterprises and encourage sustained economic activity.
While NACCIMA’s endorsement highlights optimism about the potential benefits of the tax overhaul, the association continues to emphasise the need for clear implementation guidelines, robust taxpayer education and ongoing dialogue with government agencies to ensure that the promised advantages for small businesses are realised in practice as the new regime comes into force.
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