Tax Reform to Eliminate Bottlenecks and Boost MSME Growth
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has stated that the tax reform bill will remove regulatory barriers and enhance the growth of micro, small, and medium enterprises (MSMEs).
Stakeholder Engagement on Tax Reform
Charles Odii, Director-General (DG) of SMEDAN, made this statement on Friday during a stakeholder engagement on tax reforms in Abuja. The event, themed “Understanding the Tax Reform Bills: Benefits and How MSMEs Can Maximise Tax,” brought together industry stakeholders, providing business owners with insights and clarifications on the bill.
Key Benefits of the Tax Reform Bill
Odii highlighted that the bill, once passed, would:
- Remove multiple taxation on MSMEs.
- Exempt businesses with annual earnings below N100 million from key tax obligations such as Value Added Tax (VAT), Company Income Tax (CIT), and Pay As You Earn (PAYE).
- Encourage business formalization and expansion by eliminating excessive tax burdens.
He emphasized the importance of educating business owners about these benefits, stating that Nigeria has over 39.6 million MSMEs, and raising awareness is the first step to ensuring their success.
Call for Senate Approval
Odii commended the House of Representatives for passing the bill and urged the Senate to expedite its approval.
“When small businesses flourish, the entire economy benefits. This reform will remove unnecessary regulatory bottlenecks, allowing MSMEs to thrive,” he said.
NASME’s Endorsement of the Reform
Abdulrashid Yerima, President of the Nigeria Association of Small and Medium Enterprises (NASME), also praised the proposed reforms. He noted that the bill addresses major challenges faced by small businesses, particularly multiple taxation and arbitrary levies imposed by regulatory agencies.
Yerima stated:
“Our members have long struggled with excessive taxation at different levels—import duties, levies on turnover, and arbitrary charges from state and local governments.”
He further emphasized the need for effective implementation to prevent unauthorized tax collectors and non-state actors from imposing levies on MSMEs.
The tax reform bill is expected to significantly improve the business environment for MSMEs in Nigeria. By reducing tax burdens and regulatory obstacles, the reform will promote small business growth and contribute to overall economic development.
