Multiple Taxation Persists Despite N5m Penalty For Illegal Collection – LCCI

The Lagos Chamber of Commerce and Industry (LCCI) has said multiple taxation remained the most pressing constraint facing Nigerian businesses, nine months after new tax laws consolidated more than 100 sub-national taxes into nine revenue heads, abolished revenue roadblocks and banned cash collection.

The Chamber said the persistence of illegal levies and overlapping charges is particularly troubling because the new tax laws prescribed penalties of up to N5 million or three years’ imprisonment for illegal tax collection.

Citing the Central Bank of Nigeria’s September 2026 Business Expectations Survey, LCCI president, Engr. Leye Kupoluyi, said high or multiple taxation ranked ahead of insecurity and high interest rates as the leading constraint on business activity.

He said manufacturers in Apapa still report that trucks are stopped by several agencies and 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 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 urged the Joint Revenue Board and state governments to publish a consolidated schedule of lawful levies in each state, to prosecute illegal collectors publicly under the new penalties, and to establish a tax ombudsman.

It also called for 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 the movement of goods.

LCCI said implementation of the tax reforms should prioritise clarity, fairness, administrative simplicity and predictability, with simplified compliance procedures, effective taxpayer education, harmonisation of overlapping charges and a transparent dispute-resolution framework.

On e-invoicing, Kupoluyi raised concerns over low readiness among mid-sized firms after the Nigeria Revenue Service activated its system for medium taxpayers with turnover of N1 billion to N5 billion on July 1, 2026. Penalties are scheduled to take effect in the first quarter of 2027.

He warned that firms without certified systems risk having large customers reject their invoices, disrupting supply chains. He urged the NRS to publish readiness data from its October–November review, grant a six-month penalty-free transition and provide low-cost certified solutions for SMEs.

The LCCI also set out six priorities for the fourth quarter of 2026, urging the Federal Government to urgently lower energy and logistics costs, unlock affordable credit for manufacturers and SMEs, and simplify the tax and regulatory environment.

Kupoluyi described the third quarter as presenting a mixed picture of encouraging growth, foreign exchange stability, rising external reserves and moderating inflation, alongside persistent pressures from energy costs, expensive financing, weak purchasing power, logistics inefficiencies, infrastructure deficits, insecurity and regulatory challenges.

He called for a coordinated programme to reduce energy and transportation costs through improved electricity reliability, stronger domestic refining and distribution efficiency, upgraded transport infrastructure and the removal of avoidable charges across supply chains.

While supporting efforts to moderate petrol price volatility, he said that policy must ultimately deliver lower, more predictable energy costs. LCCI had earlier proposed a six-month Petrol Price Reduction Programme targeting a 15–20 per cent cut from the prevailing national weighted-average price.

The Chamber also urged accelerated support for manufacturing and SMEs through affordable financing, reliable power, industrial infrastructure and efficient import and export procedures. It asked development finance institutions to expand well-governed financing for viable productive enterprises, with transparent eligibility criteria and clear performance requirements.

Kupoluyi said monetary policy should remain consistent with price stability but pay closer attention to the transmission of high interest rates to credit in the productive sector. Fiscal policy, he said, should reduce supply-side constraints, improve infrastructure, strengthen domestic production, maintain discipline and improve the quality of public expenditure.

He further called for intensified support for food supply chains and agricultural productivity through investment in irrigation, mechanisation, storage, rural roads, agricultural finance and agro-processing.

The Chamber urged government to institutionalise regular consultations with organised business beyond policy announcements, to examine evidence, resolve bottlenecks and assess measurable outcomes.

Kupoluyi said the central challenge for the final quarter is to ensure that macroeconomic gains reflect in the real economy through deliberate efforts to lower the cost of doing business and create a more predictable regulatory environment.

He noted that Nigeria’s 4.2 per cent GDP growth in the first half of 2026 was encouraging but had not translated into improved business performance, higher real incomes or sufficient employment.

Public debt rose to N166.79 trillion as of June 30, 2026, from N152.40 trillion in June 2025, while interest payments of N7.7 trillion in the first half exceeded federal government revenue of N6.2 trillion. LCCI warned that rising debt could sustain elevated interest rates, increase financing costs and limit affordable credit for manufacturers and MSMEs.