Nigeria’s recently enacted package of four tax laws under President Tinubu’s administration is receiving renewed criticism from tax experts, economists, and business leaders for failing to ease the corporate tax burden and reform the operating environment effectively .
Taiwo Oyedele, head of the Presidential Fiscal Policy and Tax Reforms Committee, warned that without reducing corporate tax rates, the country risks merely taxing capital rather than profit. He emphasized that Nigeria must slash its effective corporate tax, currently around 35%, to match regional peers like Ghana (25%), Egypt (22.5–25%), and Rwanda (30%, but with attractive tax incentives) .
Echoing this, Prof. Hassan Oaikhenan from the University of Benin highlighted that while non‑oil revenue is vital, the government must also unlock a supportive business climate. Industry bodies such as MAN and NECA argue that the constant onslaught of levies—federal, state, and local—has rendered the tax landscape hostile, piecemeal, and unpredictable .
Yet not all agree. Igho Andy Ejemeyovwi, a former FIRS official, countered that the focus should be on implementing and enforcing the new laws first—combating corruption, digitalizing systems, and enhancing capacity—before considering a tax cut .
Beyond the headline corporate rate, experts say Nigeria’s high tariffs, multipoint levies, and complex regulations further squeeze businesses. Manufacturers face input costs significantly above regional averages, undermining competitiveness .
They recommend a holistic approach that spans law reform, administrative overhaul, and tech-enabled compliance tools. Digital tax systems, streamlined procedures for MSMEs, and aligning FX policy—such as insisting tax payments be made in naira—are among the proposed solutions .
As Nigeria looks ahead to its 2025 budget cycle, analysts warn the country could fall behind more business-friendly African economies unless deep reforms—especially slashing corporate tax and simplifying the regulatory burden—are swiftly implemented .
