Nigeria’s drive to build a more investor-friendly economy has taken a fresh turn, as the Nigerian Economic Summit Group calls for urgent amendments to several key legislations shaping the country’s business environment.
The recommendation followed the presentation of a policy brief in Abuja, developed by the Ernest Shonekan Centre for Legislative Reforms and Economic Development. The report outlines priority legislative actions aimed at improving ease of doing business, attracting investment, and strengthening economic stability.
Speaking during the presentation, the Lead Consultant, Shola Omoju, identified several laws requiring immediate review. These include the Nigerian Oil and Gas Content Development Act 2010, the Environmental Impact Assessment Act, the Gas Flaring Prohibition and Punishment (Amendment) Bill, and the Banks and Other Financial Institutions Act.
Tax Reform Gaps and Business Realities
A major focus of the recommendations was the Nigeria Tax Act, where NESG highlighted inconsistencies affecting small businesses. The group urged alignment between the tax law and the Companies and Allied Matters Act, particularly in defining small businesses.
According to the report, such alignment is crucial given the role of small and medium-scale enterprises in driving GDP growth, employment, and exports.
NESG also called for amendments to allow businesses deduct foreign currency expenses using official exchange rates provided by the Central Bank of Nigeria or other approved channels. This, it argued, would help businesses recover costs more effectively amid fluctuating forex rates.
Concerns were equally raised about compliance costs, data privacy, and cybersecurity risks linked to digital tax tools, especially for MSMEs. The group warned that without proper safeguards, these could impose additional burdens on already struggling businesses.
Electricity Sector: Collaboration and Investment Needed
On the Electricity Act 2023, the report emphasised the need for stronger collaboration between state governments and distribution companies to improve power supply and attract investment.
NESG noted that states must create business-friendly legal frameworks that support returns on investment while addressing key challenges such as energy theft, poor metering, weak revenue collection, and infrastructure protection.
The group also suggested targeted interventions to improve electricity affordability, particularly through metering support for low-income and rural communities.
Petroleum Sector and Policy Alignment Concerns
The Petroleum Industry Act also came under review, with NESG advocating amendments to address existing gaps and optimise opportunities within the oil and gas sector.
While acknowledging the PIA as a major reform milestone, stakeholders argued that continuous refinement is necessary to sustain investor confidence and improve sector performance.
Nigeria’s current economic reforms are anchored on three major frameworks—the 2025 tax laws, the PIA, and the Electricity Act. These reforms aim to modernise fiscal systems, decentralise power regulation, and improve governance across critical sectors.
However, analysts warn that implementing these reforms simultaneously has created concerns about policy overlap and regulatory uncertainty, particularly where tax provisions intersect with sector-specific laws.
Stakeholder Reactions: Law vs Implementation
Reacting to the proposals, Adetayo Adegbemle, Executive Director of PowerUp Nigeria, welcomed the conversation but called for clearer details on what constitutes a truly business-friendly environment.
Similarly, Colman Obasi, President of the Oil and Gas Services Providers Association of Nigeria, described the PIA as a solid foundation that can be improved over time. He stressed that beyond legislative reforms, effective implementation remains critical.
As Nigeria continues its economic transformation journey, the push for legislative fine-tuning highlights a broader reality: strong policies alone are not enough—execution, coordination, and clarity will ultimately determine their success.