The Nigeria Economic Summit Group, NESG, has charged the National Assembly to amend the Nigeria Tax Act 2015, the Petroleum Industry Act, PIA, and the Electricity Acts 2023, and some other laws to enhance the business environment in the country.
This followed a presentation in Abuja, yesterday, of a policy brief on Priority Legislative Actions to foster an enabling business environment in Nigeria.
The document is the product of a research undertaken by the Ernest Shonekan Centre for Legislative Reforms and Economic Development, which is a subsidiary of NESG.
According to the report presented by the Lead Consultant, Dr. Shola Omoju, other laws requiring immediate amendment include the Nigerian Oil and Gas Content Development Act 2010; Environmental Impact Assessment Act; Gas Flaring Prohibition and Punishment (Amendment) Bill; and Banks and Other Financial Institutions, BOFIA, Act.
On the Nigeria Tax Act, the group said: “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.
“Also, 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.
“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.
“Also, the compliance costs, data privacy, and cybersecurity issues that may be associated with implementation of digital fiscal tools as provided for in Section 157 of the Nigeria Tax Act, especially on micro, small and medium-scale enterprises, MSMEs, should be examined to prevent inhibitive costs to their operations.”
On the Electricity Act, the group stated: “There is need to ensure collaboration between distribution companies and state governments to create an enabling environment for investors in the sector.
“The states’ legal frameworks should enable a business-friendly ecosystem that enhances returns on investment.
“In addition, given that the existing distribution companies are already regionally constrained, state governments should work with them to address challenges affecting power supply in their states, like energy theft, inadequate metering, poor collection rates, and protection of power infrastructure, while offering incentives to attract investments.
“State governments can help to address the affordability issue related to the provision of metres for low-income and rural areas. This will go a long way in ensuring metering and aid tariff collection, and ultimately the viability of the sector.”
The group also called for an amendment of the Petroleum Industry Act, arguing that improving the Act and optimising the opportunities of the sector require addressing identified gaps in the Act.
Recall that Nigeria’s ongoing economic reforms are anchored on three major policy frameworks: the 2025 tax reform laws, the Petroleum Industry Act, PIA, and the Electricity Act 2023.
They are designed to modernise fiscal management, improve sector governance, and attract investment across critical segments of the economy.
The 2025 tax reform represents Nigeria’s most ambitious attempt in decades to overhaul its fragmented tax system.
Previously, the country operated multiple tax laws that often overlapped, creating complexity and weakening compliance.
The new framework consolidates these into a more unified structure, streamlines administration, and introduces stricter reporting standards.
It also seeks to expand the tax base, improve transparency, and boost government revenue, while gradually lowering corporate tax rates to encourage investment. A key feature is its attempt to harmonise taxation across sectors, including oil, gas, and power.
The PIA, enacted in 2021 after years of stalled reforms, provides a comprehensive legal and fiscal framework for Nigeria’s oil and gas industry. It replaced outdated laws, introduced new regulatory institutions, and established a revised fiscal regime, including hydrocarbon taxes.
The Act also created Host Community Development Trusts to address long-standing grievances in oil-producing areas and commercialised the Nigeria National Petroleum Corporation, NNPC, to improve efficiency and accountability.
The law is widely seen as critical to restoring investor confidence in the petroleum sector.
Meanwhile, the Electricity Act 2023 marks a significant shift in Nigeria’s power sector by decentralising authority and breaking the federal monopoly on electricity regulation.
It empowers state governments to generate, transmit and distribute electricity within their jurisdictions, while encouraging private sector participation.
The law aims to address chronic power shortages, improve infrastructure, and create a more competitive electricity market.
However, the simultaneous implementation of these reforms has raised concerns about policy alignment, particularly where the new tax laws intersect with sector-specific provisions in the PIA and Electricity Act, potentially creating regulatory overlaps and uncertainty for investors.
Supporting NESG’s call for amendment, Executive Director, PowerUp Nigeria, Mr. Adetayo Adegbemle, said: “It is interesting that NESG is speaking up now, especially considering how long my organisation has been advocating a manufacturing-focused power sector. The Electricity Act is currently undergoing amendment in the House.
“But then, I do not have the full details of the NESG’s position or the content of its proposal, so it would be helpful if they could clearly explain what ‘enhancing business friendliness’ really entails before I make any comment on it.”
Similarly, the National President, Oil and Gas Services Providers Association of Nigeria, OGSPAN, Mazi Colman Obasi, said:”The PIA is not a perfect document, but it was a good starting point for Nigeria when it was enacted. If a stakeholder like NESG believes the time has come to improve it, so be it.
“The same applies to the new tax law and even the Electricity Act. Nigeria is fortunate to have the Electricity Act in its current form. Amending it could make it even more beneficial for the nation. However, beyond legislation, execution is equally important.”
