Multiple Taxation Still Top Business Constraint Despite New Laws — LCCI

Multiple taxation remained the most pressing constraint for Nigerian businesses, ahead of insecurity and interest rates.

This is according to the Central Bank of Nigeria’s (CBN) September 2026 Business Expectations Survey, cited by the Lagos Chamber of Commerce and Industry (LCCI) at its fourth quarterly press briefing on the state of the economy held on Wednesday, in Lagos.

The president of LCCI, Engr. Leye Kupoluyi, said the situation persists despite stiff penalties of up to N5 million or three years’ imprisonment for illegal tax collection under the new laws.

“Manufacturers in Apapa report that trucks are still stopped by several agencies and by non-state actors between the ports and their factories. Operators estimate that renewed congestion on the port corridor has cost about N100 billion,” Kupoluyi said.

He warned that the continued extortion and overlapping levies raise compliance costs, create uncertainty and disadvantage formal businesses already struggling with high energy costs, expensive financing and structural constraints.

The Chamber called on the Joint Revenue Board (JRB) and state governments to urgently publish a consolidated schedule of lawful levies for each state to provide clarity for businesses.

“We call on the Joint Revenue Board and state governments to publish a consolidated schedule of lawful levies for each state, to prosecute illegal collectors visibly under the new penalties, and to establish a tax ombudsman,” he said.

LCCI also advocated a single consolidated bill for all port-related charges and the declaration of a no-tout zone across Lagos industrial and port corridors to eliminate unofficial collections and ease movement of goods.

The Chamber said implementation of Nigeria’s tax reforms should prioritize clarity, fairness, administrative simplicity and predictability, noting that a recent LCCI survey showed businesses need a tax system that broadens compliance and supports revenue mobilisation without discouraging production, investment and formalisation.

On e-invoicing enforcement, Kupoluyi raised fresh concerns over low readiness among mid-sized firms.

He disclosed that the Nigeria Revenue Service (NRS) e-invoicing system went live for medium taxpayers with N1billion to N5 billion turnover on July 1, 2026, with penalties to apply from Q1 2027.

Bypassing the system, he said, attracts a penalty of N200,000 plus 100 per cent of the tax due, plus interest at Monetary Policy Rate (MPR) + 2 per cent, while buyers may also be denied input-VAT credit on non-compliant invoices.

“Many mid-sized firms do not yet have certified systems, so the main risk is that large customers reject their invoices and supply chains are disrupted,” Kupoluyi warned.

He urged the NRS to use its October-November post-go-live review to publish readiness data and grant a six-month penalty-free transition for firms still struggling to comply.

He also called for provision of low-cost certified solutions for Small and Medium Enterprises (SMEs) to ease adoption.

He stressed that tax administration must be enabling rather than disruptive to business operations.