Economic analysts and policy experts have emphasised the need for clear public education on the recently enacted Tax Reform Act.
They warn that without sufficient awareness, many businesses—particularly micro, small, and medium enterprises (MSMEs)—may fail to comply fully, risking penalties and financial strain.
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Importance of awareness and guidance
Experts suggest that government agencies should provide detailed guidance through manuals, workshops, and online resources. Small businesses often lack the technical expertise or administrative capacity to navigate complex tax regulations, which could lead to errors in reporting or missed incentives.
Clarity is particularly important for low-income earners and informal business operators who are integrating into the formal economy for the first time. Effective education would help these businesses understand tax obligations, compliance timelines, and available benefits under the new law.
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Benefits for compliance and economic growth
Improved public education on tax reforms can increase compliance rates, reduce disputes, and support government revenue collection. For SMEs, understanding the law enables better financial planning, cost management, and strategic growth decisions.
Analysts say that properly informed businesses are more likely to formalise, gain access to financing, and participate fully in the economy, which strengthens Nigeria’s economic stability and growth.
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Broader implications
The implementation of tax reforms alongside clear public education can improve trust in government policy, promote fairness, and support private sector development. Experts note that SMEs form the backbone of the economy, so their understanding of taxation is crucial for nationwide economic advancement.
Effective public education is therefore essential to the success of the Tax Reform Act and the continued growth of Nigerian SMEs.
