Nigeria’s recently enacted tax laws are expected to provide a major boost for small and medium-sized enterprises (SMEs), experts say, as they offer opportunities to strengthen internal processes, improve tax reporting, and deepen engagement with government agencies. Business leaders believe that adopting structured operations and compliance systems will be key for SMEs to fully leverage the benefits of the new tax framework.
Prof. Uchenna Uzo, Director of Africa Retail Academy, explained that retailers, in particular, will need to make operational adjustments to align with the reforms. “The retail sector will be one of the most exposed to the new tax regime,” he said. “Businesses will need to review tax reporting, invoicing, pricing strategies, and supplier management to comply effectively.” He added that companies should anticipate structural changes previously ignored to maximize the law’s potential.
Experts also highlighted the importance of proactive engagement between SMEs and regulators. Drawing lessons from countries like India, Uzo noted that formal frameworks for collaboration can drive policy improvements and strengthen the business environment. “Retail stakeholders must take the lead, similar to how the banking sector implemented reforms like the Bank Verification Number,” he said, noting that Nigeria currently lacks a national retail policy.
Awareness of the new tax laws is growing among SMEs, though gaps remain, according to Dr. Femi Egbesola, President of the Association of Small Business Owners (ASBON). He urged government authorities to adopt grassroots communication strategies, using local languages and community networks to reach informal operators. “Many small business owners still do not understand how the law works or how to benefit from it,” he explained, emphasizing the need for transparency and accountability to build trust.
The reforms also include protective measures to shield SMEs from exploitation and arbitrary tax enforcement. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, highlighted that the new laws establish the Office of the Tax Ombuds, offering businesses a formal channel to resolve disputes and prevent harassment. “Previously, small businesses often had to negotiate unofficial payments, exposing them to repeated exploitation,” he said. With these safeguards, SMEs can now operate more confidently in a regulated and supportive environment.
source: punch