Four Days to Tax Reform as Manufacturers Express Optimism, Labour and SMEs Warn of Resistance

Manufacturers have expressed optimism about the proposed tax reforms, saying they expect significant relief from what they described as multiple nuisance taxes imposed by sub-national authorities. According to industry leaders, the reforms are expected to end the persistent harassment of businesses through official and unofficial levies, allowing companies to operate more freely and efficiently.
They noted that the changes would eliminate roadblocks and other disruptions associated with tax collection, adding that the broader economy would benefit from a more orderly and predictable tax environment. Manufacturers said they are looking forward to the implementation of the new tax laws from January 1, 2026, stressing that they actively participated in stakeholder consultations and believe the framework is well designed to support both small-scale and large businesses.
It was further explained that the reforms would provide substantial relief for small businesses, particularly those with annual turnovers below ₦100 million, which would be exempted from company income tax, value-added tax and withholding tax. This, they said, would ease the burden on struggling enterprises and encourage growth.
The reduction in company income tax was also described as a step that would align Nigeria with global best practices, create room for business reinvestment and improve the country’s attractiveness to investors. In addition, low-income earners are expected to be fully exempt from tax, while middle-income earners would benefit from lower liabilities due to enhanced reliefs.
Manufacturers also welcomed the planned introduction of a tax ombuds, describing it as a major safeguard for taxpayers. They said the office would offer protection against arbitrary tax practices and provide a fair channel for dispute resolution. Overall, they expressed confidence that the reforms would not leave any category of earners worse off, noting that even higher-income earners would benefit indirectly through improved business performance under the new tax regime.