NACCIMA calls for tax reforms to drive growth, protect businesses

The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has urged the Nigerian government to review the country’s tax policies, warning that arbitrary taxation threatens business sustainability and economic growth.

Speaking at the 45th Trade Fair organised by the Kano Chamber of Commerce, Industry, Mines, and Agriculture (KACCIMA), NACCIMA President Dele Oye expressed concern over sections of the proposed 2024 Tax Bill, which he described as detrimental to businesses operating in critical sectors, including free trade zones.

Mr Oye argued that excessive taxation stifles innovation, deters investment, and hinders the growth of enterprises essential to Nigeria’s economic prosperity.

“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,” he said.

He specifically called on the Federal Government to expunge contentious provisions in the Tax Bill, including sections 60, 198(2), 198(3), and the Second Schedule, which he said undermine incentives granted to enterprises in free trade zones under the 2007 Companies Income Tax Act.

Mr Oye also criticised a recent memorandum from the Federal Inland Revenue Service (FIRS), dated October 20, for disregarding legal provisions underpinning the free trade zone policy established in 2002 by former President Olusegun Obasanjo.

“While congratulating the board and management of Dala Economic Zone, I would like to appeal to Mr. President to reconsider and withdraw the FIRS memorandum. Policies affecting critical economic sectors must be preceded by broad consultations with stakeholders,” he added.

He said the theme of the event, “Non-Oil Export for Economic Prosperity,” underscored the private sector’s focus on diversifying Nigeria’s economy.

Mr Oye emphasised the need for strategic government actions to unlock the potential of non-oil exports, including the establishment of trade offices, export-focused roadshows, and partnerships with international trade organisations to secure preferential trade agreements.

“The government must take deliberate and proactive steps to create market access for non-oil exports by implementing strategic policies and programs that connect local producers to global markets. Establishing trade offices in key export destinations can promote Nigerian products and facilitate business linkages.

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“Through strategic partnerships with international trade organizations, we can secure preferential trade agreements that grant Nigerian products a competitive edge. Moreover, government-led initiatives like trade missions and export-focused roadshows can showcase the quality and diversity of Nigerian goods while building networks with foreign buyers. By leveraging diplomatic channels, we can address barriers such as restrictive trade policies, unfair tariffs, and logistical challenges that hinder market penetration,” Mr Oye said.

He also called for increased financial support for export-oriented enterprises, enhanced quality control at ports, and initiatives to help businesses secure international certifications such as HACCP, FDA and ISO.