In a decisive move that signals critical private sector backing for Nigeria’s fiscal overhaul, the Nigeria Employers’ Consultative Association (NECA) has publicly endorsed the implementation of a suite of new tax laws set to take effect in January. This endorsement comes at a pivotal moment, as the reforms have been mired in political controversy and public misinformation.
At a media briefing in Lagos, NECA’s Director-General, Mr. Wale Smatt-Oyerinde, framed the association’s support not merely as agreement with policy, but as a strategic imperative for national economic survival. He commended the Presidential Committee on Fiscal Policy and Tax Reforms for its extensive stakeholder engagement, a process he described as navigating “organised chaos.”
Decoding the “Organised Chaos” and Stiff Resistance
Smatt-Oyerinde provided rare insight into the turbulent journey of the tax legislation, calling it “a significant item that had witnessed the most excellent form of organised chaos in Nigeria’s political history.” His characterization points to a fierce behind-the-scenes battle between reformists and entrenched interests. The DG was unequivocal: “The stiff resistance faced by the reforms alone was an indication that some forces were against the growth of the Nigerian economy.” This resistance culminated in recent allegations of discrepancies between the gazetted version of the laws and the one passed by the National Assembly—a claim that threatened to derail implementation entirely.
The Core Argument for Implementation: Imperfect Action Over Perfect Paralysis
NECA’s central thesis is pragmatic. Acknowledging that “no law is perfect,” Smatt-Oyerinde argued that the pursuit of flawless legislation has long been a barrier to progress in Nigeria’s economic governance. He urged the Federal Government to proceed with implementation immediately, stating that procedural issues raised by the National Assembly should not hinder laws with profound economic objectives. “We cannot continue to run the system the way it was run with a lot of inconsistencies,” he asserted, advocating for a build-as-you-go approach: “As we proceed, we can make necessary amendments, and by doing so, we are building an institution.”
Beyond Revenue: The Broader Economic and Security Rationale
NECA’s support transcends simple tax compliance. The DG linked the reforms directly to Nigeria’s most pressing challenges: unemployment and insecurity. The new laws, he explained, are fundamentally “aimed at creating a more conducive and productive business environment for the private sector.” The logic chain is critical: a streamlined, predictable, and equitable tax system reduces the cost and complexity of doing business. This enables business growth, which in turn generates formal employment. Sustainable jobs, NECA argues, address the root causes of social unrest and insecurity by providing legitimate economic alternatives for the populace.
A Call for Collaborative Awareness and Seamless Execution
Looking ahead, Smatt-Oyerinde called for a collaborative effort between the Federal Inland Revenue Service (FIRS) and the Organised Private Sector (OPS) to “deepen awareness on the new tax laws.” This is a crucial step to ensure smooth adoption and compliance, mitigating the confusion that often accompanies major policy shifts. His final plea was for the legislation to “be allowed to run seamlessly, for the betterment of the nation,” positioning these tax reforms as a foundational step toward a more institutionalized and less chaotic economic future for Nigeria.
Edited by Sandra Umeh
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