Dele Kelvin Oye, the National President of The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), has urged President Bola Tinubu’s administration to prioritize tax reform by reducing corporate taxes to 19% and setting Value Added Tax (VAT) at 7.5%. Oye expressed this in a statement he personally signed, emphasizing the importance of these changes to foster economic growth and enhance government revenue.
Oye’s call comes amidst ongoing discussions about tax reforms in Nigeria. The current Tax Reforms bills before the National Assembly propose gradual increases in VAT rates, starting from 10% in 2025, with incremental hikes to 12.5% between 2026 and 2029, and 15% by 2030. In contrast, Oye and NACCIMA argue that reducing corporate taxes and maintaining VAT at 7.5% will better stimulate the economy and lead to greater tax revenue.
“We believe corporate taxes should be further reduced to 19% and VAT pegged at 7.5%. This approach will contribute to economic growth and ultimately result in higher tax revenues for the government,” Oye stated. “To protect government revenues, however, we recommend that no taxpayer should pay less than the previous year’s tax amount.”
Oye also raised concerns over the persistent disconnect between the federal and state governments, particularly regarding revenue sharing. He criticized the ongoing public disputes between these levels of government, which often play out in the media, overlooking the interests of taxpayers. “The current media engagement between federal and state governments only further confirms the disconnect described above,” Oye remarked, adding that the focus on securing a larger share of taxpayer funds ignores the fundamental needs of the public and taxpayers.
Highlighting the importance of the telecommunications sector, which contributes significantly to government revenues, Oye stressed the need for targeted reforms to unlock further growth in this area. He also called for greater private sector involvement in tax reform discussions, particularly with key stakeholders in industries such as aviation, telecommunications, manufacturing, and operators in Free Trade Zones.
NACCIMA criticized the current approach, where committees engage with taxpayers in a lecturing manner without producing tangible results. “Significant taxpayers, like the telecommunications sector, who require reforms that could boost tax revenues, should not be ignored. Real dialogue with genuine concessions must take place,” Oye emphasized.
For improved coordination, Oye suggested that the outcome of these discussions should be forwarded to the National Assembly through the office of the Attorney General, as directed by President Tinubu.
