“Amend new tax laws” has been recommended by the Nigeria Economic Summit Group, which called on the National Assembly to review key economic legislation affecting businesses and investment. The group said reforms should extend to the Petroleum Industry Act and Electricity Act. The recommendation was presented in a policy brief in Abuja. It aims to address regulatory gaps and improve economic performance.
Amend new tax laws forms part of broader concerns about inconsistencies in Nigeria’s legal and regulatory framework. Current laws governing taxation, petroleum operations, and electricity markets were designed to modernise the economy and attract investment.
However, stakeholders have identified gaps in implementation and alignment across these laws. The Nigeria Tax Act, Petroleum Industry Act, and Electricity Act operate with overlapping provisions in some areas. These overlaps can increase compliance costs and create uncertainty for businesses operating across sectors.
The Nigeria Economic Summit Group developed its recommendations through the Ernest Shonekan Centre for Legislative Reforms and Economic Development. The policy brief outlines specific areas requiring legislative attention.
Amend new tax laws recommendation includes aligning definitions of small businesses within the tax framework. NESG stated that the definition should match provisions under the Companies and Allied Matters Act to ensure consistency.
The group also called for amendment of Section 20(4) of the Nigeria Tax Act. It proposed that businesses be allowed to deduct foreign currency expenses using official exchange rates. This, according to the group, would improve financial reporting and reduce distortions.
NESG raised concerns about compliance costs linked to digital tax systems. It noted that small businesses may face challenges related to data privacy and cybersecurity requirements under current frameworks.
On the Electricity Act, the group recommended improved coordination between distribution companies and state governments. It stated that stronger collaboration would support investment and enhance service delivery in the power sector.
The policy brief also identified issues such as energy theft, inadequate metering, and low revenue collection. NESG urged reforms that would strengthen infrastructure protection and improve operational efficiency.
Regarding the Petroleum Industry Act, the group said implementation gaps should be addressed. It noted that improving the framework would help optimise opportunities within Nigeria’s oil and gas sector.
Additional laws identified for review include the Nigerian Oil and Gas Content Development Act and the Banks and Other Financial Institutions Act.
Amend new tax laws highlights the importance of policy coordination in Nigeria’s economic reform process. Aligning key legislation could reduce uncertainty and improve investor confidence.
The recommendations also address structural challenges faced by businesses, including high compliance costs and regulatory inconsistencies. Addressing these issues may enhance ease of doing business and support private sector growth.
Improved alignment across fiscal and sectoral laws could strengthen Nigeria’s investment climate. It may also contribute to long-term economic stability and growth.
