The Lagos Chamber of Commerce and Industry and the Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, Taiwo Oyedele, have noted that the new tax laws will stimulate economic growth, expand investment and improve job creation by harmonising taxes and freeing up funds for businesses.
Speaking at the LCCI’s 2026 economic review and outlook conference held in Lagos on Thursday, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, Oyedele, said the government designed the reforms to fix the earlier tax system that had constrained growth and discouraged investment.
Oyedele said, “The context for the reform is that we have a broken fiscal and tax system where the system was not conducive for growth. We were taxing capital and investments. Even if you didn’t make profits, you were meant to still pay minimum tax. You were essentially paying out of your capital.”
He assured that the new laws would use tax as a lever to facilitate growth by allowing businesses to retain more funds for expansion through credits and input claims.
“If I am allowed to use that money for investment, with a lot of tax credits and input claims, then it’s better for me and therefore better for the country because I can employ more people,” Oyedele remarked.
The Tax Czar stated that the reforms reduce corporate income tax from 30 per cent to 25 per cent, remove minimum tax and allow businesses to recover Value Added Tax paid on assets and services.
“From this January, if you spend money on assets or services and it has VAT, you can now claim it back,” he said, describing the provision as one of the biggest reliefs for businesses, especially in the service sector.
Oyedele added that the laws would ease the burden on small businesses and low-income earners, noting that firms with turnover below N100m would no longer pay certain taxes, while the monthly tax-free threshold for individuals had risen to about N100,000.
He explained, “The economy is struggling because there is an excess tax burden. So, let’s take that burden away so people can breathe.”
Oyedele also noted that the reforms would improve competitiveness by cutting the number of taxes and levies paid by businesses to a single digit through tax harmonisation across federal, state and local governments. He added that the money accrued from the collected taxes will feed the Nigerian Education Loan Fund, which will facilitate education and pull more Nigerians out of poverty.
“This is to bring sanity into the tax system… And some of the proceeds will go to NELFUND.”
On revenue, Oyedele said the reforms would grow government income mainly through economic expansion rather than higher rates.
“The biggest area for revenue growth is economic growth, particularly when it is inclusive,” he said, adding that technology, electronic invoicing and risk-based audits would reduce evasion and harassment of compliant taxpayers.
He said the creation of an Office of the Tax Ombudsman would also protect taxpayers, especially small businesses. “This new law has stopped that exploitation. The implication is economic growth, shared prosperity and more jobs.”
The President of the LCCI, Leye Kupoluyi, described the summit as a platform to review the reforms, which have proven to be largely positive for Nigerians and businesses. He also encouraged business owners to approach the new tax laws as a catalyst for growth.
“Dr Taiwo Oyedele made it clear that the tax will not affect over 98 per cent of Nigerians negatively,” Kupoluyi said. “In other words, the tax issue will put more spending money into their pockets. Even for the top two per cent, what they may lose on personal tax, they will likely gain on corporate tax.”
The LCCI president stated that the reforms were aimed at growing businesses and profits, adding, “All said and done, it shows that the tax is positive to the economy.”
Kupoluyi noted that the recent reforms had laid a solid foundation for growth, citing improvements in foreign exchange stability and external reserves.
“Nigeria has got a very good foundation in 2025 and a better hope for 2026,” he said. “Growth this year will be far above last year’s 4.2 per cent. Our own projection is about six to seven per cent.”
He added that inclusive growth and poverty reduction must remain central to policy.
“The strength of a nation is the strength of the weakest link,” Kupoluyi said. “We need to reduce poverty to the barest minimum so that everyone can benefit from the economy.”
Also speaking, the Director-General of the LCCI, Dr Chinyere Almona, said the outlook for 2026 was positive as recent reforms were beginning to yield results.
Almona said, “We’ve gone through a lot of pain in the past, a lot of reforms, but those reforms are taking root now. Businesses can begin to see improvements in the business environment, ease of doing business and the cost of doing business.”
She expressed optimism that both businesses and individuals should begin to experience some relief as reforms mature. She also called for more pro-business regulatory changes and better engagement between regulators and stakeholders.
“We expect regulators to be a bit more pro-business and to engage more with stakeholders,” Almona added. “That will ease business challenges.”