NESG Urges Government to Amend Tax Act, PIA, Electricity Law, Gives Reasons
- NESG has urged the government to amend major economic laws to improve the business environment
- It recommended tax reforms to support small businesses and address foreign exchange cost recovery
- Stakeholders agree that reforms are necessary, but stress that effective implementation is critical
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Nigeria Economic Summit Group (NESG) has called on the National Assembly to amend key economic laws, including the Nigeria Tax Act 2015, the Petroleum Industry Act (PIA), and the Electricity Act 2023, to improve Nigeria’s business environment.
The recommendation was presented in Abuja during the unveiling of a policy brief on priority legislative actions needed to foster a more enabling climate for businesses, Vanguard reported.
Source: Twitter
The document was developed by the Ernest Shonekan Centre for Legislative Reforms and Economic Development, a subsidiary of NESG.
Presenting the report, Lead Consultant Shola Omoju said several laws require urgent review. These include the Nigerian Oil and Gas Content Development Act 2010, Environmental Impact Assessment Act, Gas Flaring Prohibition and Punishment (Amendment) Bill, and the Banks and Other Financial Institutions Act.
On the Nigeria Tax Act, the group recommended aligning the definition of small businesses with provisions in the Companies and Allied Matters Act to better reflect their contribution to GDP, employment, and exports.
It also proposed amending provisions to allow companies to deduct foreign currency expenses using official exchange rates published by the Central Bank of Nigeria (CBN) or other approved channels.
According to the NESG, this would enable businesses sourcing forex at higher rates to fully recover their costs.
Concerns over compliance and digital tools
The group further advised that compliance costs, data privacy, and cybersecurity risks linked to digital fiscal tools in the Tax Act should be carefully assessed, particularly for micro, small, and medium enterprises (MSMEs).
It warned that poorly implemented provisions could increase operational costs and discourage business growth.
Electricity sector reforms
On the Electricity Act, NESG emphasised the need for stronger collaboration between distribution companies and state governments to attract investment.
It said state-level legal frameworks should support a business-friendly environment that improves returns on investment in the power sector.
The group also urged states to address key challenges such as energy theft, poor metering, low revenue collection, and infrastructure protection.
In addition, it recommended targeted interventions to improve access to meters in low-income and rural communities, which it said would enhance tariff collection and sector viability.
Call to strengthen PIA framework
NESG also called for amendments to the Petroleum Industry Act to address gaps and maximise opportunities in the oil and gas sector.
The group noted that while the PIA provides a comprehensive legal and fiscal framework, improvements are needed to sustain investor confidence and optimise sector performance.
Nigeria’s ongoing economic reforms are anchored on three major frameworks — the tax reform laws, the PIA, and the Electricity Act 2023 — aimed at improving fiscal management, governance, and investment inflows.
However, NESG raised concerns about possible overlaps between these laws, especially where tax provisions intersect with sector-specific regulations, potentially creating uncertainty for investors.
Source: Getty Images
Marketers ask FG to approve import licences
Legit.ng earlier reported that the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the federal government to reinstate petrol import licences, saying the move will promote competition and stabilise fuel prices in the country.
The association made this call in agreement with a similar call by the World Bank, which argued that allowing importation would prevent inflation.
According to PETROAN, the recommendation aligns with its long-standing advocacy for a liberalised downstream petroleum sector.
Source: Legit.ng
