The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Organised Private Sector (OPS) have expressed concerns over the long-term implication of arbitrary taxation on businesses and the country’s economy.
 
Speaking at the 45th Trade Fair hosted by the Kano Chamber of Commerce, Industry, Mines and Agriculture (KACCIMA), the President of NACCIMA, Dele Oye, emphasised that high taxes hinder innovation, stifle investment and threaten the sustainability of enterprises.
 
However, the International Monetary Fund (IMF), in its ‘G20 Report on Strong, Sustainable, Balance and Inclusive Growth; dated November 2024’, said about 90 per cent of African Union (AU) economies will require mobilising greater tax revenues, among other reforms, to experience growth.
 
Oye specifically called for a review of sections of the 2024 Tax Bill, citing provisions that negatively impact businesses, particularly those operating within free trade zones, and, therefore, urged the Federal Government to adopt a more collaborative and long-term approach to taxation policies, to destabilise critical sectors of the economy.
 
He said: “As Margaret Thatcher warned, we should be wary of high taxes. High taxation restricts the power of the people while giving more authority to the government. As we strive for economic prosperity, I must also draw attention to the issue of arbitrary taxation. I urge all levels of government in Nigeria, especially state and local governments, to consider the long-term implications of high taxation on businesses.
 
“High tax burdens can stifle innovation, deter investment and threaten enterprises critical to our economic growth. Let us work collaboratively to create a business-friendly environment that encourages entrepreneurship and fosters economic development.”
 
On free trade zones, Oye stated, “While congratulating the board and management of Dala Economic Zone, I would like to appeal to the President to consider advice from the genuine private sector and OPS in Nigeria and to always hold stakeholder forums before implementing major economic policies.
 
“In this regard, we appeal to him to reconsider and withdraw the approval of the memorandum dated October 20, 2024, authored by the Federal Inland Revenue Service (FIRS) chairman. This memorandum inadvertently overlooked the legal basis for the incentives on free trade zones granted by President Olusegun Obasanjo in 2002, predicated on Section 23(s) of the 2007 CITA.”
 
He called on the Federal Government to expunge Sections 60, 198(2), and 198(3) from the bill; exclude free zone enterprises from the scope of Section 57 of the bill, and delete the Second Schedule of the bill.
 
Speaking on the theme of the event, ‘Non-Oil Export for Economic Prosperity’, the NACCIMA boss said it resonated deeply with “our collective aspiration for sustainable economic growth, especially as we navigate an ever-evolving global landscape.”
 
According to him, the future of Nigeria’s economy undeniably lies in the diversification of exports, and “it is imperative that we rally together towards this goal.”

The IMF report stated that economic activity in AU was forecast to accelerate, with growth increasing from 3.3 per cent in 2023 to 4.4 per cent in 2029, thereby returning close to pre-pandemic average levels (4.4 per cent in 2000 to 2019). For the AU, of which Nigeria is a part, the IMF maintained that reforms targeting fiscal policies, governance, education and skills rank highest.
 
According to the report, in about three-quarters of AU economies, governance reform needs to rank very high, often with the aim of strengthening the rule of law, fighting corruption, improving Public Financial Management (PFM) and anti-money laundering/countering the financing of terrorism (AML/CFT) frameworks and enhancing transparency, efficiency, and accountability of the government and state-owned enterprise sector.
 
The report advised African governments to not just mobilise greater tax revenues, but also control public spending while ensuring transparency.
 
“Almost 90 per cent of AU economies require high-priority reforms of fiscal policy, including mobilising greater tax revenues, controlling public spending and enhancing transparency, while also maintaining essential social spending.  
  
“For about half of AU countries, high priority is assigned to reforms to improve education and skills; and for about 40 per cent, reforms to business regulation, credit markets, and the green sector are assigned high importance,” the report noted.