…Endorse Tax Bill before the National Assembly
The federal government of Nigeria seemed to frown at the nation’s low values in the non-oil export sub-sector which was as low as $2.5bn few years ago. The efforts through the Nigerian Export Promotion Council (NEPC) led to annual increase of $3.5 in 2022, $4.5bn in 2023, and $5.5bn in 2024.
Now, with aggressive tax reform policies in form of a bill in National Assembly, experts in the export sector have examined what international trade may gain from such policy bouquet and what can be done to further boost international trade.
Thus, the Institute of Export Operations & Management (IEOM), Nigeria, took up this task bringing together leading experts in trade policy, taxation, and economic development, to examine the far-reaching impacts of the Tax Reform Bills currently before the National Assembly.
The discussion examined how these reforms align with Nigeria’s commitments under the African Continental Free Trade Area (AfCFTA), the ECOWAS Tax Harmonization Framework, and global tax compliance frameworks such as the OECD’s Base Erosion and Profit Shifting (BEPS) framework.
A central theme was the need to ensure that Tax Reforms not only enhance revenue generation but also improve Nigeria’s trade competitiveness, ease compliance for businesses, and support economic integration in Africa.
The discussion featured insightful contributions from such professors and experts as Jonathan Aremu (Trade and Investment Policy Expert, AfCFTA Consultant); Gabriel Ekpo (International Trade Specialist & Export Development and Marketing Consultant); Olatunji Abdulrazaq (Founder/Global Head/CEO, Success Africa & Other Continents Ltd); and Ofon Udofia (CEO & Executive Secretary, IEOM, as moderator).
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The experts in a communique broadly endorsed the proposed Tax Reform Bills, noting their alignment with Nigeria’s trade ambitions and international commitments. They also emphasized the necessity of modernizing Nigeria’s tax framework to foster economic growth, ease the cost of doing business, and enhance investor confidence.
They argued that effective implementation of the reforms would increase transparency, reduce trade bottlenecks, and strengthen regional economic integration.
On Nigeria’s AfCFTA Commitments and trade competitiveness, the panel agreed that Nigeria’s proposed tax reforms support cross-border trade, investment flows, and trade facilitation across Africa, something the EU envoys to West Africa have advocated for years.
They said implementing these reforms in a way that removes trade barriers and fosters intra-African trade is critical to unlocking the full benefits of AfCFTA.
Read also: Tax reforms and Nigeria’s path to equitable and sustainable growth
On the urgent need for ECOWAS Tax Harmonization, the panel said Nigeria must accelerate efforts to harmonize its tax policies with ECOWAS regional frameworks to enhance seamless trade relations within West Africa. “The ECOWAS Guidelines on Harmonization of Taxes provide a blueprint for aligning Nigeria’s tax system with member states, which will help reduce trade distortions and enhance investment attractiveness.
“Without harmonization, businesses trading across ECOWAS will continue to face inconsistencies in tax compliance, creating unnecessary barriers to trade expansion.”
They said compliance would become easier and more cost-effective for businesses. “The proposed reforms will simplify tax administration, lower compliance costs, and reduce excessive bureaucracy, particularly for businesses engaged in cross-border trade.
“Increased automation of tax processes and clearer tax policies will enhance compliance efficiency and provide greater certainty for businesses. 3.5 SMEs Must Be at the Center of Implementation
“SMEs constitute over 90% of businesses in Nigeria but face significant compliance challenges due to complex tax structures and high costs. Successful implementation of the tax reforms must prioritize simplified tax filing processes, digitalized reporting mechanisms, and targeted incentives to encourage SME participation in the formal economy.”
The demanded that tax policies must support SME growth rather than imposing burdens that drive businesses into informality. “The Single Window System is a game-changer, but implementation is key.”
There was a consensus that the Single Window should be managed independently, rather than by Customs or the Nigerian Ports Authority (NPA), to enhance efficiency and reduce bureaucratic bottlenecks.
They suggested that Nigeria’s informal export sector remains largely unregulated, limiting the full impact of tax reforms on trade revenue and economic growth. “The government must develop pathways for informal traders to transition into the formal sector, enabling them to benefit from tax incentives, financing, and regulatory protections.”
They also called for what they termed simplified registration processes and stronger enforcement mechanisms will be key to achieving this objective.
They also observed that infrastructure must be strengthened for reforms to succeed and that tax reforms alone cannot drive trade growth because Nigeria must invest in critical infrastructure, including power, energy, transportation, and digital trade infrastructure.
The discussion underscored that successful tax reforms require strategic implementation, ensuring alignment with Nigeria’s trade ambitions, regional economic integration, and business competitiveness. “For these reforms to deliver their intended benefits, collaboration between policymakers, trade professionals, business leaders, and regulatory bodies is crucial. By adopting a structured and transparent approach, Nigeria can create a tax environment that facilitates trade, attracts investment, and fosters sustainable economic growth.”
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