NESG tax law amendment call has been issued as the Nigeria Economic Summit Group urged the National Assembly to urgently review the Nigeria Tax Act, Petroleum Industry Act, and Electricity Act to improve Nigeria’s business environment and investment climate.
The call was contained in a policy brief presented in Abuja, focusing on priority legislative actions required to strengthen Nigeria’s economic framework. The document was developed by the Ernest Shonekan Centre for Legislative Reforms and Economic Development, a subsidiary of the Nigeria Economic Summit Group.
Nigeria’s current economic reform framework is anchored on key legislations, including the Nigeria Tax Act, the Petroleum Industry Act (PIA), and the Electricity Act 2023. These laws are designed to modernise fiscal policy, improve sector governance, and attract private investment across critical sectors such as oil, gas, and power.
However, stakeholders have raised concerns about gaps, overlaps, and implementation challenges affecting their effectiveness. The NESG tax law amendment call was presented by lead consultant, Dr. Shola Omoju, who outlined specific areas requiring legislative review.
On the Nigeria Tax Act, the group recommended aligning the definition of small businesses with provisions in the Companies and Allied Matters Act (CAMA), noting the importance of small enterprises to employment and economic growth.
The NESG also called for amendments to allow businesses deduct foreign currency expenses using official exchange rates, a move expected to improve cost recovery for firms sourcing forex through approved channels.
Additionally, the group urged lawmakers to review provisions related to digital fiscal tools, highlighting concerns over compliance costs, data privacy, and cybersecurity risks, especially for micro, small, and medium enterprises.
On the Electricity Act, the NESG emphasised the need for stronger collaboration between state governments and distribution companies to create an enabling environment for investment. It also highlighted challenges such as energy theft, poor metering, and infrastructure protection, calling for targeted reforms to address them.
Regarding the Petroleum Industry Act, the group stated that although the law provides a comprehensive framework for Nigeria’s oil and gas sector, identified gaps should be addressed to optimise its benefits and attract further investment.
The NESG tax law amendment call highlights the importance of policy alignment across key economic sectors.
Experts note that inconsistencies between tax laws, petroleum regulations, and electricity frameworks could create uncertainty for investors, potentially affecting capital inflows and long-term economic growth. Addressing these gaps may improve regulatory clarity, reduce compliance burdens, and enhance Nigeria’s attractiveness as an investment destination.
