The Nigeria Employers’ Consultative Association (NECA) has publicly supported the commencement of the new federal tax laws from January 1, 2026, while urging that the reforms must genuinely ease the tax burden on small and medium enterprises (SMEs) to protect their growth and sustainability.
NECA’s Director-General, Adewale-Smatt Oyerinde, spoke at an end-of-year media engagement, affirming that simplifying and harmonising tax regulations could benefit Nigerian businesses, including SMEs, by removing overlapping levies and regulatory inconsistencies.
However, NECA also stressed that coordination, stakeholder trust, and sensitivity to the fragile state of SMEs are essential for the reforms to succeed. According to the association, many small business owners currently face challenges such as conflicting policies between government agencies, which increase operational costs and undermine investor confidence.
Read also:
- NASENI innovation signals new business opportunities
- YMR fuels youth MSMEs nationwide with ₦24m growth grants
- Nigeria positions economy as SME gateway for Europe Africa trade
- Tax reforms committee engages Ombud to protect SMEs
- Cashew sector could unlock $10bn SME opportunity
The association’s stance highlighted that while tax reform presents an opportunity for a more efficient fiscal environment, the real test will be whether the policy delivers measurable relief for small businesses that form the backbone of Nigeria’s economy.
SME operators and industry stakeholders are now watching closely to see how the new tax regime will be implemented in practice and whether further clarifications or incentives will be introduced to support smaller enterprises’ compliance and growth.
