SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN NIGERIA AND THE REGIME CHANGE IN TAX

Abstract

Fiscal reforms and the objective of promoting ease of doing business are some of the key campaign promises of the Tinubu-led administration in Nigeria. Since the attainment of the leadership in May 2023, there have been fundamental changes in economic policies, with rising concerns about the benefits or otherwise of these changes. Of significant mention is the overhaul of Nigeria’s tax system. Nigeria’s tax regime was changed during the previous government to usher in fresh economic perspectives, especially as it relates to incentivising small businesses. The new tax regime is significantly hinged on curbing tax leakages within the Nigerian economy, unifying revenue collection agencies, and harmonising taxes, which have often led to multiple taxation. Notably, recent interventions have led to the enactment of the Nigeria Tax Act, 2025 (NTA), the Nigeria Tax Administration Act, 2025 (NTAA), the Nigeria Revenue Service (Establishment) Act, 2025 (NRSA), and the Joint Revenue Board of Nigeria (Establishment) Act, 2025 (JRBA). Considering the various alterations to taxes under this regime, it has become expedient to examine how these changes and novel provisions affect individual citizens and businesses (small and large). Hence, this article investigates the impact of Nigeria’s new tax regime, especially the NTA 2025 and the NTAA 2025, on SMEs in Nigeria. It makes due reference to previous tax practices, highlighting some of the milestones recorded so far and the way forward.