Nigeria’s Presidential Committee on Fiscal Policy & Tax Reforms is pushing for a constitutional amendment that would eliminate 90% of the taxes currently imposed on businesses by local government authorities.
Committee Chairman Taiwo Oyedele said the plan aims to dismantle the overwhelming tax pressure facing enterprises nationwide, especially small and medium-sized businesses.
Speaking at the Telecom Compliance Management Forum convened by the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Oyedele said the amendment bill is already before the National Assembly.
He noted that these multiple local taxes have long slowed productivity and stifled expansion across key sectors, especially telecommunications.
Constitutional Amendment Seen as Critical
Oyedele said the Committee reviewed the exclusive and concurrent legislative lists, alongside the constitution’s full schedule, as part of the reform proposal.
“For local government, we removed like 90% of the taxes they have there. We actually think that local government should collect only one tax, and they can make 10 times what they are making now,” he explained.
He added that telecom operators pay more than 40 taxes nationwide, and harmonizing them has proven complex.
“We’re still harmonizing because harmonizing taxes is not easy. In the new tax laws we’ve enacted, we’ve harmonized taxes that are collected for the federal government,” he said.
However, he noted that taxes imposed by states and LGAs require constitutional changes because their collection powers are entrenched in the Constitution.
According to him, “anything done outside the constitution will be null and void,” which is why the amendment bill has reached its second reading and a public hearing is being scheduled.
Telecom Sector Gains from Federal Tax Reforms
Nigerian Communications Commission (NCC) Executive Vice Chairman, Dr. Aminu Maida, said the government’s tax reforms have already eased pressure on the telecom industry.
Represented by Executive Commissioner for Technical Services, Abraham Oshadami, Maida said the abolition of the 5% excise duty and the streamlining of over 56 levies helped stabilize operators’ costs.
He said the telecom industry’s contribution of 9.52% to GDP in Q2 2025, serving 140 million Internet users, shows its growing national significance.
“With growth comes greater responsibility to maintain compliance with fiscal and regulatory obligations, strengthen governance practices, and ensure service quality continues to improve,” he said.
Industry Leaders Welcome Simpler, Predictable Tax Climate
Earlier, ALTON Chairman Engr. Gbenga Adebayo said the reforms are dismantling the industry’s biggest challenge, multiple taxation.
“For many years, our sector faced over 50 different taxes and levies across Federal, State and Local Government levels,” he noted.
Adebayo said the new tax framework improves policy predictability, promotes fairness, and reduces administrative burdens on telecom operators.
He added that 2026 will be a defining year for the industry as the reforms take full effect, emphasizing the need for clarity on compliance expectations under the new rules.
The forum, themed “Securing the Future: Navigating Compliance and Governance for Improved Quality of Service and Experience in Nigeria’s Digital Landscape,” also hosted panel discussions.
A key session on “Ethical Governance and Operational Efficiency for Improved QoS” was facilitated by MTN Nigeria’s Chief Risk and Compliance Officer, Obiageli Ugboma.
