Tax law implementation: NECA tasks FIRs to work with OPS
The Nigeria Employers’ Consultative Association (NECA) has tasked the Federal Inland Revenue Service (FIRS) to step up to its responsibility by working with the organised private sector to deepen awareness on the new tax laws.
This charge follows NECA’s endorsement of the new law which its Director-General, Mr. Wale Smatt-Oyerinde, while commending the Presidential Committee on Fiscal Policy and Tax Reforms said it went through an “unprecedented stakeholder engagement” in the lead-up to the new tax regime.
Smatt-Oyerinde noted that NECA expects FIRS to take a frontline role in collaborating with businesses to clarify grey areas in the law and counter misinformation.
“We urge FIRS to step up to its responsibility by working with the organised private sector to deepen awareness on the tax laws,” he said.
He described the tax reform process as one of the most debated legislative efforts in Nigeria’s history, but stressed that such intense engagement underscored its importance.
“I have not seen any legislation that has witnessed this level of organised chaos, engagement and antagonism, yet the committee has done tremendous work,” he stated.
Despite concerns raised over alleged discrepancies between the gazetted version of the law and the one passed by the National Assembly, NECA maintained that these issues should not delay implementation, a position aligned with FIRS’ resolve to move forward while allowing room for amendments.
“No law is perfect. As we proceed, we can make necessary amendments. By doing so, we are building strong institutions,” Smatt-Oyerinde said, adding that consistency in the tax system is essential for economic planning and investor confidence.
According to NECA, the new tax laws are designed to create a more conducive business environment, stimulate private sector productivity and generate jobs—outcomes that FIRS believes will ultimately broaden the tax base and reduce dependence on a narrow pool of taxpayers.
Smatt-Oyerinde argued that resistance to the reforms signals opposition to economic growth. “The stiff resistance alone is an indication that some forces are against the growth of the Nigerian economy,” he said, while praising FIRS for sustaining dialogue amid the pushback.
On broader regulatory matters, he also cautioned against policy decisions that could undermine businesses, citing the recent ban on sachet drinks by NAFDAC. He warned that such blanket bans could lead to job losses and encourage smuggling, given Nigeria’s porous borders.
He called for sustained government–private sector engagement, a principle FIRS has consistently advocated as part of its taxpayer-centric approach to administration and enforcement.
Reflecting on 2025, Smatt-Oyerinde described the year as “eventful,” noting that NECA worked with agencies such as FIRS to make the business environment more predictable and investment-friendly.
While acknowledging that current economic reforms have delivered macroeconomic stability, he expressed optimism that 2026 would see tangible microeconomic benefits for Nigerians, especially if fiscal reforms are implemented effectively.
On other contentious fiscal issues, including the N25 million annual levy on Public Interest Entities under the FRC (Amendment) Act 2023, NECA said it would continue engagement with regulators, echoing FIRS’ position that sustained dialogue is essential to achieving regulatory equity, investor confidence and sustainable revenue growth.
