NACCIMA Demands Bold Tax Action to Spur Economy

The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has urged President Bola Tinubu’s administration to take decisive action on tax reform by reducing corporate taxes to 19% and maintaining Value Added Tax (VAT) at 7.5%.

In a statement signed by its National President, Dele Kelvin Oye, NACCIMA warned that the tax proposals currently before the National Assembly—which raise VAT to 10% in 2025, 12.5% between 2026–2029, and 15% from 2030—risk undermining business confidence, discouraging investment, and compounding the cost-of-living burden for Nigerians.

“True reform must be about stimulating growth, not overburdening businesses or households,” Oye stated. “We believe corporate taxes should be reduced to 19% and VAT pegged at 7.5%. This will expand the economy, generate more jobs, and ultimately result in higher tax revenues for government. To safeguard revenue, no taxpayer should remit less than the preceding year.”

The association cautioned that higher taxes, in the current climate of inflation and exchange rate volatility, could erode Nigeria’s competitiveness in the global market and frustrate the government’s vision of attracting investment. Instead, NACCIMA emphasized that growth-driven reforms will create a broader and more sustainable tax base.

Oye also expressed concern over the ongoing rift between federal and state governments, which has been laid bare in their disagreements over revenue sharing. He stressed that Nigeria requires a unified, people-centered approach to fiscal policy at this critical moment in the nation’s economy.

NACCIMA reiterated its readiness to partner with the government in crafting reforms that balance fiscal responsibility with economic empowerment. The association underscored that this is not only an economic imperative but also a political one—building trust between government, citizens, and the private sector.

“The path to prosperity is not through higher rates but through policies that unlock growth, attract investment, and build a Nigeria where businesses thrive and citizens prosper,” Oye affirmed.

Credit: Nairametrics.