Nigeria’s business community has expressed concern as the implementation of the new tax regime draws closer. Industry leaders say that the changes scheduled to take effect on 1 January 2026 have raised questions about how companies will cope with the revised rules. Many business owners, particularly small and medium‑sized enterprises (SMEs), said they are facing uncertainty and pressure as they prepare for the transition.
Operators across sectors said they are uncertain about the burden the new tax system will place on operations. Some business owners described the wait for clear guidance as a source of anxiety that has affected planning for investment and growth. They said that the lack of detailed explanations, especially on how new assessments will be conducted, has made it difficult to forecast future costs.
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Impact on investment and planning
Analysts say that investment decisions are being delayed as companies try to understand the implications of the law. Traders and manufacturers told reporters that they are cautious about expanding operations without knowing how the tax changes will affect profitability. Business owners said that confidence in the economy is being tested, with some even considering postponing capital expenditure until after the first quarter of next year.
One SME owner said the looming changes feel like a threat to stability. “We are doing our best to prepare, but not knowing how our tax obligations will be assessed makes it hard to decide whether to hire staff or buy new equipment,” the owner said. This highlights the challenges small firms face as they balance survival with strategic decision‑making.
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Government assurances and calls for clarity
Government officials have said the reforms are designed to simplify the tax system and improve revenue collection. They argue that a streamlined tax framework could ultimately benefit the economy by reducing loopholes and harmonising tax obligations across different sectors. However, business representatives have urged authorities to provide more detailed guidelines and transitional support before the regime takes effect.
Small business groups are calling for clear timelines, training on compliance systems, and assurances that support mechanisms will be available to help enterprises adapt. A trade association leader said: “If the changes are meant to strengthen the economy, we need clear information and support now, not after the law is enacted.” This reflects a broader concern that insufficient preparation could stall growth and lead to difficult adjustments for many firms.
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Economic context and broader effects
The new tax regime arrives at a time when Nigeria’s headline inflation rate has shown signs of easing, with recent data indicating a decline in price pressures. According to the National Bureau of Statistics, the inflation rate fell to 14.45% in November 2025, its lowest level in several years. Policymakers have pointed to this trend as a positive development, but analysts caution that disinflation does not eliminate uncertainty for businesses facing new regulatory requirements.
Economists say that while tax reform may be necessary for long‑term revenue stability, the lack of clear communication is testing the resilience of the private sector. Firms told reporters they need actionable details now so they can adjust budgets, hire staff, invest and plan for the coming year.
