The Nigeria Economic Summit Group (NESG) has urged the National Assembly to urgently 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.
This recommendation followed the presentation of a policy brief in Abuja titled “Priority Legislative Actions to Foster an Enabling Business Environment in Nigeria.” The report was developed by the Ernest Shonekan Centre for Legislative Reforms and Economic Development, a subsidiary of NESG, and presented by its Lead Consultant, Dr. Shola Omoju.
According to the report, other laws requiring immediate review 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 (BOFIA).
On tax reforms, NESG recommended aligning the definition of small businesses in the Nigeria Tax Act with that of the Companies and Allied Matters Act (CAMA). It also proposed amending Section 20(4) to allow businesses deduct foreign currency expenses using the official exchange rate published by the Central Bank of Nigeria (CBN) or other approved channels. This, it noted, would enable firms sourcing forex at higher rates to fully recover costs. The group further warned that digital fiscal tools under Section 157 could impose high compliance, data privacy, and cybersecurity burdens on micro, small, and medium enterprises (MSMEs).
Regarding the Electricity Act, NESG stressed the need for stronger collaboration between state governments and distribution companies to create a more investor-friendly power sector. It highlighted challenges such as energy theft, poor metering, weak revenue collection, and infrastructure protection, urging states to introduce incentives and support metering, especially for low-income and rural communities.
NESG also called for amendments to the PIA to address gaps and optimise opportunities in the oil and gas sector. While acknowledging that Nigeria’s recent reforms aim to modernise fiscal management and attract investment, the group warned that overlaps between the tax law, PIA, and Electricity Act could create regulatory uncertainty.
Stakeholders, including industry leaders, agreed that while legislative improvements are necessary, effective implementation remains critical to achieving the desired economic impact.
