Risks of Multiple Levies Despite Reform
The Nigeria Employers’ Consultative Association (NECA), led by DG Adewale‑Smatt Oyerinde, has voiced concern that certain federal agencies retain enabling laws that empower them to introduce additional levies—such as the 4% Free on Board (FOB) charge by Customs. NECA warns this redundancy could undermine efforts to harmonise taxes under the new reforms. Their call to amend these enabling Acts aims to support seamless implementation.
Technical and Operational Challenges with E‑Invoicing
NECA also highlighted serious reliability issues, particularly frequent downtime of the e‑invoicing platform, which poses a threat to business operations. Oyerinde emphasized that affected firms deserve proper consideration and support in voicing these operational challenges.
Mixed Sentiments on Tax Reform Benefits
There's a recognition that the new tax reforms consolidating tax laws into four major acts (Nigeria Tax Act, Tax Administration Act, Nigeria Revenue Service Act, and Joint Revenue Board Act)—are a long-awaited relief from over a decade of multiple taxation burdens. For many in the OPS, it signifies a welcome “uhuru” (freedom).
However, MSMEs express uncertainty, pointing out that the reforms’ technical complexity and poor clarity could hinder uptake, especially for informal-sector businesses unfamiliar with complex tax concepts like input or output VAT. The exemption thresholds (N50 million) might also be insufficient given inflationary pressures.
Broad Business Frustrations with Tax System Complexity
Even before formal implementation, businesses across sectors including MSMEs have grumbled about the burden of multiple, inconsistent taxes and requested clearer guidelines and robust feedback mechanisms to ensure fair, understandable compliance processes.
Broader Context & Implementation Updates
E‑Invoicing (Merchant-Buyer Solution) was designed to modernise Nigeria’s tax system by enabling real-time validation of business transactions across B2B, B2C, and B2G interactions. FIRS projects this could significantly narrow an estimated N8 trillion tax gap and boost the tax-to-GDP ratio from around 10.3% to 18% within three years.
As of now, approximately 1,000 large taxpayers (20%) have been onboarded ahead of the November 1, 2025 deadline. Despite this, uptake remains modest, and compliance timelines have been extended to accommodate challenges companies are facing.
FIRS has proactively engaged key sectors such as oil & gas and pledged support for smooth integration, including assistance with ERP systems and accounting software.
Summary
Stakeholder Main Concerns
NECA / OPS Legacy levies, platform downtime, concise guidance on e‑invoicing
MSMEs Complex tax technicalities, low thresholds insufficient, informal sector inclusion
Broader Business Coordination issues, multiple tax layers, unclear communication
FIRS & Government Rollout delays, technical integration, stakeholder outreach efforts
Overall, while the reforms represent a bold and much needed shift toward a modernised tax regime, the private sector remains cautious seeking clear operational assurances, streamlined legislation, and better support as the changes unfold.
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