New tax law reflects shift towards inclusive growth – NASME
By Lucy Ogalue
The Nigerian Association of Small and Medium Enterprises (NASMEs) has described the 2025 Tax Act as a signal of Federal Government’s commitment to inclusive economic growth and enterprise resilience.
Dr Abdulrashid Yerima, the President of NASMEs, said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.
Yerima described the tax reforms as a welcome development with cautious optimism, particularly for Micro, Small and Medium Enterprises (MSMEs) across Nigeria and West Africa.
He hailed the exemption of low income earners from tax alongside the upward revision of the turnover threshold for small businesses from N25 million to N100 million.
According to him, this marks a major policy shift towards a more equitable tax system.
“This aligns with global best practices in progressive taxation and demonstrates a conscious effort to support income redistribution and stimulate enterprise growth,” Yerima said.
He said the adjustment was timely, given the prevailing challenges including high exchange rates and commercial bank lending rates that exceeded 37 per cent.
“This makes it difficult for small businesses to survive,” he added.
Yerima also lauded the removal of the previous 0.5 per cent turnover tax on loss-making businesses, saying it was a positive and corrective move.
“The old policy is punitive and counterproductive as it discouraged innovation and threatened startup survival.
“This reform shows the government is now more attuned to the realities of Nigeria’s volatile business environment,” he said.
He said the new tax law improved Nigeria’s ease of doing business through simpler compliance processes and exemptions that reduced the cost and complexity of tax filing for small firms.
“The new tax law represents a shift in philosophy from taxation for revenue extraction to taxation for economic stimulation and inclusive growth,” he said.
He emphasised the potential implications for investments, saying the reforms would likely improve investor confidence, especially with the clearer, fairer and more predictable tax regime.
“Domestic and foreign investors are more likely to take risks when the tax environment supports innovation, especially for early-stage enterprises.
“This encourages private equity and venture capital investment,” Yerima said.
He said the MSMEs, recognised as engines of economic transformation, stood to benefit from increased reinvestment, local content expansion and industrial clustering.
According to him, all these aligned with the goals of the African Continental Free Trade Area (AfCFTA) and the ECOWAS Trade Liberalisation Scheme (ETLS).
Yerima said that the 2025 Tax Act was a maturing framework that prioritised resilience, innovation and inclusive development.
He called for continued stakeholder engagement, public awareness campaigns, and reforms in tax administration to ensure effective implementation.
“We at NASME, and through the ACORE Small Business Coalition, remain committed to working with the government, international partners, and the private sector.
“To ensure that Nigeria’s tax reforms lead to tangible benefits for small businesses and the wider economy,” he said. (NAN)(www.nannews.ng)
Edited by Benson Ezugwu/Ese E. Eniola Williams
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