The Nigeria Economic Summit Group has called on the National Assembly to urgently amend key economic laws, including the Nigeria Tax Act, the Petroleum Industry Act (PIA), and the Electricity Act 2023, to improve Nigeria’s business environment.
The recommendation followed the presentation of a policy brief by the Ernest Shonekan Centre for Legislative Reforms and Economic Development, a subsidiary of NESG.
According to the report, presented by Dr. Shola Omoju, several other laws also require review, including the Nigerian Oil and Gas Content Development Act, Environmental Impact Assessment Act, and BOFIA.
On the Nigeria Tax Act, NESG stressed the need for alignment, stating: “The definition of small businesses in the Act should be aligned with the definitions in the CAMA Act. This is important, given that small businesses contribute to gross domestic product, GDP, employment and exports.”
The group also recommended changes to tax provisions affecting foreign currency expenses: “Section 20(4) of the Nigeria Tax Act should be amended to allow businesses deduct expenses incurred in foreign currency, converted at the official exchange rate published by the Central Bank of Nigeria, CBN, or any other approved channels.”
It added: “This will help to ensure that businesses that source foreign exchange from other official channels at higher rates are able to fully recoup their expenses.”
NESG further warned about potential burdens on MSMEs, noting: “The compliance costs, data privacy, and cybersecurity issues… should be examined to prevent inhibitive costs to their operations.”
On the Electricity Act, the group emphasised stronger collaboration between stakeholders: “There is need to ensure collaboration between distribution companies and state governments to create an enabling environment for investors in the sector.”
It also highlighted the role of states in addressing sector challenges such as metering, energy theft, and infrastructure protection.
Regarding the PIA, NESG maintained that reforms are necessary to maximise the sector’s potential and address existing gaps.
Stakeholders, including power sector advocates and oil and gas operators, acknowledged that while the laws are important milestones, continuous review and effective implementation remain critical to achieving sustainable economic growth.