KEY POINTS
- NESG’s policy brief calls for amendment of the Nigeria Tax Act, Petroleum Industry Act and Electricity Act 2023 to enhance Nigeria’s business environment
- Tax Act amendments sought include aligning small business definitions with CAMA, allowing foreign currency expense deductions and reviewing digital fiscal tool provisions for MSMEs
- PowerUp Nigeria and OGSPAN back the reform call, with OGSPAN cautioning that execution must match legislation
The Nigeria Economic Summit Group has called on the National Assembly to amend the Nigeria Tax Act, the Petroleum Industry Act and the Electricity Act 2023, describing the changes as essential to improving the country’s business environment.
Dr. Shola Omoju, lead consultant at the Ernest Shonekan Centre for Legislative Reforms and Economic Development, an NESG subsidiary, presented a policy brief in Abuja Wednesday on priority legislative actions to foster an enabling business environment.
NESG’s tax reform proposals on the Tax Act include aligning small business definitions with the Companies and Allied Matters Act and amending Section 20(4) to allow foreign currency expense deductions at the Central Bank of Nigeria’s official exchange rate.
Electricity Act and PIA face calls for targeted fixes
Meanwhile, NESG said the Electricity Act requires deeper collaboration between distribution companies and state governments to create an investor-friendly environment. The group called on states to address energy theft, inadequate metering, poor collection rates and power infrastructure protection while offering incentives to attract investment.
Furthermore, the broader NESG tax reform agenda also argues that the Petroleum Industry Act needs improvement to optimize opportunities in the sector by addressing identified gaps.
NESG also flagged compliance costs, data privacy and cybersecurity risks linked to digital fiscal tools under Section 157 of the Tax Act, particularly for micro, small and medium-scale enterprises.
Industry leaders back NESG reform agenda
Additionally, Adetayo Adegbemle, executive director of PowerUp Nigeria, noted the House of Representatives was already moving to amend the Electricity Act. “It is interesting that NESG is speaking up now, especially considering how long my organization has been advocating a manufacturing-focused power sector,” Adegbemle said.
Moreover, Colman Obasi, national president of the Oil and Gas Services Providers Association of Nigeria, said the PIA was a good starting point for Nigeria when enacted and supported further improvement. “Beyond legislation, execution is equally important,” Obasi added.