Prime Business Africa
The Chairman of the Alliance for Economic Research and Ethics (AERE), Dele Kelvin Oye, has warned that limitations in the Nigeria Tax Act 2025 could hinder its successful implementation.
Speaking at a presentation, Oye highlighted issues like the cap on rent relief at NGN 500,000 annually, which he deemed “embarrassingly low” considering Nigeria’s economic hubs like Lagos, Abuja, and Port Harcourt.
“The ‘Rent Relief Paradox’ is emblematic of a failure to properly index tax benefits to inflationary realities,” Oye said. He also criticized Section 20(4) of the Act, prohibiting deductions on business losses related to forex abstinence, calculated at official exchange rates. “The Act is imposing a ‘Double Jeopardy’ tax assessment… creating a situation where businesses cannot deduct actual forex costs,” he added.
Join our WhatsApp ChannelOye further questioned the “guilt by association” provision, where businesses face denied deductions if suppliers fail to charge or remit VAT. “A compliant taxpayer is penalized for third parties’ limitations, over whom they have no control,” he said.
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Despite seeing the Act as “a monumental reform,” Oye stressed balancing consolidation with economic realism. “The NTA 2025 is progressive, but progress must be gently grounded,” he concluded, urging policymakers to consider sectoral experiences, like pharmaceuticals, in addressing challenges.
