Businesses across Nigeria are still struggling under the weight of multiple taxes and levies, despite the Federal Government’s sweeping tax reforms introduced earlier this year. A new Central Bank of Nigeria (CBN) survey has revealed that high and multiple taxation remains the biggest challenge facing businesses, raising fresh questions about how quickly the government’s reforms are translating into relief for companies.
According to the CBN’s Business Expectations Survey for July 2026, 70.8% of businesses surveyed identified high and multiple taxation as their most pressing constraint. Insecurity followed closely at 69.7%, while high interest rates ranked third at 66.3%. Other concerns included the unfavourable political climate, high bank charges, intense competition, unclear economic regulations, limited access to finance and poor infrastructure.
The findings come despite the government’s efforts to overhaul Nigeria’s tax system and make compliance easier. Four major tax reform laws signed in June 2025 took effect in January 2026, with the reforms designed to simplify tax administration, reduce duplication and improve revenue collection. The government has also introduced measures targeting small businesses and moved to stop certain road taxes, levies and checkpoint-related charges. Yet, for many businesses, the reality on the ground suggests that multiple taxation remains a major cost of doing business.
The survey, however, offered some encouraging signs for the wider economy. Businesses expressed growing confidence that the naira could gradually strengthen against the U.S. dollar, with exchange-rate expectations improving over the coming months. Financing conditions remain a concern, though, as businesses expect borrowing costs to stay relatively high, with only a modest decline in lending rates anticipated in the near and medium term.
The latest findings highlight a difficult balancing act for the government: increasing revenue without placing excessive pressure on businesses already dealing with high operating costs. Nigeria’s VAT revenue reached N2.42 trillion in the first quarter of 2026, showing stronger government revenue collection, but the CBN survey suggests businesses want tax reform to be felt not just in policy documents, but in their everyday operations. For companies trying to survive and grow, reducing overlapping taxes and making compliance simpler could be just as important as the reforms themselves.
source: nairametrics
