NACCIMA Calls for Tax Reductions to Spur Economic Growth
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has called on the Federal Government to reduce corporate taxes to 19 per cent and cap value-added tax (VAT) at 7.5 per cent. The business body argues that such reforms would bolster economic growth and ultimately increase tax revenues.
In a report titled ‘Options for Economic Reform and Consequences for the Medium-Term Expenditure Framework for 2025-2027’ and shared with The PUNCH on Sunday, NACCIMA President, Mr. Dele Oye, outlined the organisation’s recommendations for reshaping Nigeria’s fiscal policies.
A Case for Lower Taxes
“We believe corporate taxes should be further reduced to 19 per cent and VAT pegged at 7.5 per cent. This will grow the economy and result in higher tax revenues for the government,” Oye stated. He added a crucial caveat: “Each taxpayer must not pay less than the preceding tax year, ensuring that government revenues are safeguarded during the transition.”
Oye criticised what he described as a disjointed approach between federal and state governments in addressing tax reforms, highlighting the need for a unified strategy that prioritises taxpayers’ interests. He noted that sectors like telecommunications, which have significant tax contributions, require targeted reforms to unlock further growth.
Collaboration Over Confrontation
Oye stressed the importance of meaningful dialogue between the government and private sector stakeholders, urging policymakers to move away from bureaucratic committees that, in his view, “lecture taxpayers without yielding positive outcomes.”
“There must be real dialogue with genuine concessions to be made by all parties,” he said. “The private sector—including aviation, telecommunications, manufacturers, and free trade zones—must be engaged through structured communication. Outcomes of these engagements should be forwarded to the National Assembly via the Office of the Attorney General, as directed by the President.”
Oye underscored the government’s role as a facilitator rather than an economic competitor. “Governments at all levels must understand that they are referees, intermediaries, and facilitators—not industry players or benevolent entities.”
Tackling Economic Vulnerabilities
Warning against unchecked government borrowing and deficits, Oye stressed that private sector taxes and levies inevitably repay such debts. “Unless there is a consistent effort to reduce the size of government through technology and policy efficiency, these vulnerabilities will push us further away from a resilient, self-sufficient economy.”
He also pointed to the public’s right to demand basic infrastructure and services, such as security, education, health care, and utilities, noting a clear correlation between inflation and government deficits. “For this reason, the size of government must remain marginal,” he added.
Private Sector as a Partner, Not Opposition
Addressing concerns about the private sector’s role in public discourse, Oye reiterated that businesses are not political opponents. “The private sector is not political opposition. Investors have significant capital at stake and will voice their concerns where necessary.”
NACCIMA’s call for fiscal reform comes amid growing concerns over Nigeria’s economic trajectory, with Oye urging policymakers to prioritise collaboration and efficiency to foster a productive, balanced, and resilient economy.
