The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has expressed optimism that the tax reform bill will eliminate regulatory challenges and spur the growth of micro, small, and medium enterprises (MSMEs).
Speaking at a stakeholder engagement on tax reforms in Abuja on Friday, Charles Odii, SMEDAN’s Director-General, said the bill aims to remove multiple taxation and exempt businesses with annual earnings below N100 million from key tax obligations.
“We have 39,654,385 nano, micro, small, and medium enterprises (MSMEs) in Nigeria, and the first step towards ensuring their success is sensitisation,” Odii stated. “If this tax reform bill is passed, many small businesses will no longer be required to pay VAT, CIT, PAYE, and several other taxes.”
The event, themed “Understanding the Tax Reform Bills: Benefits and How MSMEs Can Maximise Tax,” brought together key stakeholders, providing business owners with clarity on the bill’s provisions.
Odii also commended the House of Representatives for passing the bill and urged the Senate to follow suit. He stressed that when small businesses thrive, the entire economy benefits.
Support from MSME Association
Abdulrashid Yerima, President of the Nigeria Association of Small and Medium Enterprises (NASME), praised the proposed reforms, highlighting how they address major concerns such as multiple taxation and arbitrary levies by regulatory agencies.
“Our members have long struggled with excessive taxation at different levels—import duties, levies on turnover, and arbitrary charges from state and local governments,” Yerima said. “The chairman of the tax reform committee has clarified that many of these burdens will be eliminated once the bill becomes law.”
He further emphasized the need for proper implementation to prevent unauthorized tax collectors and non-state actors from imposing illegal levies on small businesses.
With MSMEs playing a crucial role in Nigeria’s economy, stakeholders believe the tax reform bill could provide much-needed relief and foster business expansion.
