Oyedele, LCCI back Tax Reforms To Release Investment Captal

The Lagos Chamber of Commerce and Industry (LCCI) and the Presidential Committee on Fiscal Policy and Tax Reform have voiced strong support for Nigeria’s newly proposed tax laws, labeling them as a catalyst for economic revitalization. During the LCCI’s 2026 economic review conference, experts argued that the reforms are designed to shift the tax burden away from capital and toward profit, thereby freeing up essential funds for business expansion.

Taiwo Oyedele, Chairman of the Presidential Committee, highlighted the systemic flaws in the previous tax regime, noting that it often penalized businesses regardless of their profitability. "We were taxing capital and investments," Oyedele stated, explaining that the "minimum tax" requirement forced companies to pay out of their capital even when they recorded losses. The new reforms seek to eliminate these constraints to foster a more conducive environment for both local and foreign investors.

​A centerpiece of the reform is the reduction of the Corporate Income Tax (CIT) rate from 30 percent to 25 percent. Furthermore, the government has removed the mandatory minimum tax, a move expected to provide immediate relief to struggling enterprises. These changes are intended to encourage companies to reinvest their savings into their operations, which would, in turn, drive industrial growth and job creation across various sectors.

​In a major shift for the service and asset-heavy sectors, the new laws now allow businesses to claim Value Added Tax (VAT) paid on assets and services. Effective this January, this "input claim" mechanism ensures that businesses are not double-taxed on their operational costs. Oyedele described this as one of the most significant reliefs provided to the private sector, as it directly improves cash flow and operational liquidity.

The LCCI and the Tax Reform Committee believe that by using tax as a lever for growth rather than just a tool for revenue collection, Nigeria can unlock blocked investment capital. The consensus among the business community is that these reforms, if implemented effectively, will lead to a more transparent and efficient fiscal system that supports long-term economic stability and global competitiveness.