The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has urged the Federal Government to reduce corporate taxes to 19 percent and value-added tax (VAT) to 7.5 percent to stimulate economic growth.
In a report titled “Options for Economic Reform and Consequences for The Medium-Term Expenditure Framework for 2025-2027,” NACCIMA argued that these tax reductions would not only boost economic activity but also lead to increased government revenue in the long run.
“We believe that corporate taxes should be further reduced to 19 percent and VAT pegged at 7.5 percent. We believe this will grow the economy and result in higher tax revenues for the government,” stated Mr. Dele Oye, President of NACCIMA.
Oye emphasized the need for constructive dialogue between the government and the private sector. He criticized the current approach of government engagement, stating that “committees that come to lecture taxpayers are not giving positive outcomes.”
He advocated for meaningful dialogue and genuine concessions from all parties, including the government, the private sector, and other stakeholders. Oye stressed that the government must play the role of a facilitator and create an enabling environment for businesses to thrive.
“It is clear that government borrowing and deficits will be repaid by private sector taxes and levies,” Oye stated. “Therefore, unless there is a consistent effort to reduce the size of government through technology and policy efficiency, these economic vulnerabilities will drive us further away from a productive, balanced, and resilient economy.”
NACCIMA’s recommendations underscore the importance of creating a business-friendly environment that fosters economic growth and enhances the competitiveness of the Nigerian economy.
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