The Abuja Chamber of Commerce and Industry (ACCI) stated that one of the most transformative aspects of the tax reform bills signed into law by President Bola Ahmed Tinubu on Thursday is the exemption of small businesses with an annual turnover of below ₦50 million from Company Income Tax (CIT).
The chamber noted that the Act simplifies filing requirements, eliminating the need for audited accounts.
The new legislation includes: “The Nigeria Tax Bill (Ease of Doing Business), The Nigeria Tax Administration Bill, The Nigeria Revenue Service (Establishment) Bill and The Joint Revenue Board (Establishment) Bill.”
ACCI President, Chief Emeka Obegolu, SAN, in a statement on Friday, commended Tinubu for signing into law four landmark tax reform bills, describing the move as a bold and strategic step toward enhancing the ease of doing business, attracting investment, and establishing a fairer and more transparent tax regime in Nigeria.
Obegolu noted the provision is expected to significantly reduce the compliance burden on Small and Medium Enterprises (SMEs), encourage reinvestment, and promote job creation.
“The upward revision of the CIT exemption threshold from ₦25 million to ₦50 million clearly demonstrates an intent to support and empower small businesses. It is a progressive policy that recognises the challenges faced by SMEs and encourages a culture of growth and innovation,” Obegolu said.
He expressed satisfaction with the planned reduction in corporate tax rates for larger companies, from the current 30 per cent to 27.5 per cent in 2025, and 25 per cent in subsequent years, as a strategic move to boost investor confidence and enhance Nigeria’s economic competitiveness.
However, he expressed concern over certain provisions affecting professional service providers, calling for clarity and equitable enforcement to prevent unintended consequences such as increased informality or reduced tax compliance.
ACCI welcomed the retention of the Value Added Tax (VAT) at 7.5 per cent and the exemptions granted for essential goods and services, including basic food items, pharmaceuticals, medical services, electricity, and education, emphasising that these measures reflect the administration’s commitment to protecting low-income earners.
It said of particular significance is the repeal of the Federal Inland Revenue Service (FIRS) Act and the establishment of the Nigeria Revenue Service (NRS), a more autonomous and performance-driven tax authority, saying that the creation of the Joint Revenue Board is also a welcome development aimed at improving coordination among tax authorities across all tiers of government.
“For the business community, the elimination of multiple taxation and the introduction of a unified tax enforcement system are critical steps toward improving the overall business environment and enhancing Nigeria’s global economic standing.
“These tax reforms represent a bold and commendable shift toward building a system that works for everyone, especially the underserved sectors of our economy.
“However, the success of these reforms will depend on strong political will and consistent implementation. We call on President Tinubu and all relevant stakeholders to remain committed and courageous in executing these transformative changes.”
ACCI reaffirmed its commitment to supporting the federal government through constructive policy dialogue, technical assistance, and continuous public enlightenment to ensure the reforms achieve their intended objectives.
“As a leading voice of the private sector, ACCI will continue to advocate for policies that promote business growth, encourage formalisation, and create a level playing field for all businesses, especially SMEs, which remain the backbone of Nigeria’s economy,” Obegolu stated.
He described the reforms as timely and visionary, coming at a crucial time when Nigeria is striving to build a more inclusive and investment-friendly economic climate.
