The Bauchi State Chamber of Commerce, Industry, Mines and Agriculture (BACCIMA) has warned that Nigeria’s economic growth is being threatened by what it described as an “unfair” tax system that disproportionately burdens private businesses.

The Chamber said the nation cannot achieve sustainable economic development under a system where only private businesses are held strictly accountable, while government institutions delay their financial obligations without facing consequences.

In a statement issued by its President, Hon. Aminu Mohammed Danmaliki, BACCIMA called for the enforcement of equal standards of timeliness, penalties, and interest across both public and private sectors.

“Our position is not a demand for privilege but a call for balance and fairness,” Danmaliki said. “If businesses are required to meet strict tax deadlines under threat of penalty, then government agencies, including the Federal Inland Revenue Service (FIRS), must also be obligated to fulfill their commitments promptly, with consequences for failure.”

He stressed that fairness is the foundation of a credible tax system, noting that Withholding Tax (WHT) refunds belong to the private sector until full reconciliation is made.

Danmaliki explained that while FIRS enforces a 10 percent WHT deduction on contract sums to ensure compliance, refunds for compliant companies are rarely processed as required.

To address this, he proposed that WHT funds be held in jointly managed accounts co-supervised by FIRS and the Organized Private Sector under the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

According to him, Small and Medium Enterprises (SMEs), which constitute the majority of service providers, are the worst affected by delayed payments and withheld refunds.

“Federal, state, and local governments must be legally bound to pay certified executed contracts within a fixed timeline, say 30 days. Any delay beyond this period should attract interest and penalties, just as companies are penalized for late tax remittance,” he said.

Danmaliki further called for the creation of a Joint WHT Refund Account in selected banks, co-managed by FIRS and NACCIMA, to ensure that refunds are processed within 30 days. Any delay, he insisted, should automatically attract interest.

He criticized the existing system where government agencies impose strict penalties on taxpayers but face no repercussions for withholding payments or delaying refunds.

“This asymmetry of power is fundamentally unfair and economically destructive. If taxpayers face penalties for delay, then government institutions must also face penalties for failing to refund or pay contractors on time,” the chamber stated.