With the new tax regime now in effect, the Lagos Chamber of Commerce and Industry (LCCI) has issued a stern warning to tax consultancy services targeting the informal sector, emphasizing that Micro, Small, and Medium Enterprises (MSMEs) must not be exploited in the process of preparing tax filings and remittances to the Nigerian Revenue Service (NRS) portal.
The LCCI President, Engr. Leye Kupoluyi, made this known at the Chamber’s State of the Economy address in Lagos.
He noted that the Chamber, after careful consideration of the implications of the new tax laws, is urging businesses to continue operations formally and comply with tax authorities as implementation commences.
Kupoluyi highlighted that effective tax reform in Nigeria must address the scale of the informal economy.
“Successful implementation requires clarity, transparency, collaboration, and business-focused execution to deliver economic benefits without stifling growth,” he said.
He further explained that LCCI, together with other members of the Organised Private Sector (OPS) and the NRS, will actively monitor tax consultants to ensure ethical conduct and competence.
The aim is to protect informal sector operators and enable their growth under the new tax system.
“Generally, we are considering small businesses and the informal sector, simplifying the taxes they pay, and streamlining the process. At the same time, we are putting systems in place to monitor tax consultants, ensuring they do not exploit businesses. Consultants’ accounts with the tax authorities will allow us to track their performance and adherence to ethical standards,” he added.
Kupoluyi explained that the overall objective of the reform is to reduce the tax burden while widening the tax net.
“By simplifying taxes and extending the tax net, we bring more businesses on board, making collection easier and fairer. High earners will pay proportionally more than low earners, and the cumbersome system of taxing small operators excessively is being addressed,” he said.
He stressed that the combination of capacity-building for tax consultants and regulatory oversight will ensure that the new tax system benefits both the government and businesses, particularly MSMEs, without unnecessary exploitation.
