New tax reforms will ease inflation, spur investments — Otedola, LCCI
Billionaire businessman Femi Otedola has expressed renewed confidence in Nigeria’s economy, declaring his intention to increase investments following the signing of the new Tax Reform Act by President Bola Tinubu.
Otedola described the new laws as a bold and necessary step toward creating a more transparent, efficient, and investor-friendly economy. He said the reforms would simplify taxation, promote fairness, and restore public confidence in how revenues are managed.
“It’s not just about paying taxes,” Otedola wrote on his X handle @realFemiOtedola. “It’s about building a system where taxes fund infrastructure, drive productivity, and fuel inclusive growth. I’m inspired to invest more, and many other investors feel the same.”
Meanwhile, the Lagos Chamber of Commerce and Industry (LCCI) commended the Federal Government for passing the tax reforms, describing them as crucial for improving inflation control, trade competitiveness, tax compliance, and investor confidence.
LCCI Director General, Dr. Chinyere Almona, noted that while the broader tax net may cause a slight increase in inflation initially, it would ease price pressures in the medium term by reducing tax inefficiencies and eliminating reliance on monetary financing.
She added that exempting essential goods from Value Added Tax (VAT) would help lower the cost of living, while streamlined tax processes between federal and state governments could reduce compliance time by up to 40 percent.
Almona projected that with full implementation, Nigeria’s tax-to-GDP ratio could rise from 7.9 percent to 12 percent by 2027, with an additional N3.2 trillion in non-oil tax revenues generated over two years.
She stressed that successful implementation would require strong collaboration among federal, state, and local governments, urging the government to release a public-facing roadmap and launch pilot e-tax systems in states like Lagos, Rivers, and Kano before full rollout in January 2026.
