Photo caption: Wale Smatt-Oyerinde
By Charles Okonji
The new tax laws would foster economic growth and will also induce industrial development as the laws eliminates the case of multiple taxes that have confronting businesses in Nigeria over the years.
The Director-General of the Nigeria Employers’ Consultative Association (NECA), Wale Smatt-Oyerinde, who stated this on Tuesday at the end of year media engagement in Lagos.
Smatt-Oyerinde noted that the members of the Organised Private Sector (OPS) were consulted and engaged for their input by the Presidential Tax Committee, which make it the first time since independence, such wide consultations was made.
The NECA DG commended the Presidential Committee on Fiscal Policy and Tax Reforms for constructively engaging with all the stakeholders, irrespective of the efforts to misinform the Nigerian populace on its intention.
He declared a very strong support for the implementation of the new tax laws, expressing great satisfaction with the level of engagement associated with the tax reforms.
He advised that the Federal Government should proceed with the implementation of the laws, warning that the issue of alteration raised by the National Assembly was not sufficient to halt it, considering its economic objectives.
“We cannot continue to run the system the way it was run with a lot of inconsistencies. No law is perfect, and that’s why we have made provisions for amendments. As we proceed, we can make necessary amendments, and by doing so, we are building an institution,” he said.
He explained that the tax laws were aimed at creating a more conducive and productive business environment for the private sector, thereby generating jobs that would address the root cause of insecurity in Nigeria. He noted that the stiff resistance faced by the reforms alone is an indication that some forces were against the growth of the Nigerian economy.
According to him; “I have never seen a regulation or legislation that witnessed this kind of engagement or antagonism. I also probably have not seen an item in our lives that has witnessed this kind of organized chaos.
“However, the committee has done tremendous work, moving from one place to another. We all saw the issues, until two weeks ago, when it was alleged that the version gazetted was different from the one passed by the National Assembly. And one of the things we want to say is that, for every human endeavor, once you have human beings to superintend the process, no matter how beautiful it is, there will always be an effort to sabotage it.”
Clearing the air on controversial N25 million annual levy/cap for Public Interest Entities (PIEs) under the FRC (Amendment) Act 2023, which has generated backlash, the DG said the association will continue to engage with the Council to arrive at a long-term decision that ensures regulatory equity and investors’ confidence.
Commenting on the recent ban on sachet drinks by NAFDAC, he noted that a blanket ban was not the solution to the problem, as this would likely create another opportunity for smugglers, especially with Nigeria having more than 1,000 unmanned entry and exit.
Smatt-Oyerinde maintained that banning sachet drinks poses a serious threat to the Nigerian economy as this action would lead to loss of jobs and investments.
He called on the government to engage more with all stakeholders, business owners, and consumers to arrive at solutions that would be a win-win for all, stressing that an outright ban will also lead to smuggling of all sorts of fake and counterfeit of such products into the country.
He commended the economic reforms undertaken by the present administration, saying that it had brought macroeconomic stability to the country in 2025, expressing optimism that these gains would start translating into a more favourable microeconomic environment for Nigerians to benefit in 2026.
On the relationship between NECA and Organised Labour, he explained that it remains cordial, noting that both parties would continue to deepen engagement to close the gap in areas where there are wide disparities.
“We will consolidate on the foundation of fiscal industrialization that already existed, and continue to engage the government in the context of an environment that will make this country much more profitable, not only for those in government, but also for Nigerians,” he said.
Nigeria Employers’ Consultative Association (NECA) was formed in 1957 to provide a forum for the Government to consult with private sector employers on socio-economic and labour policy issues. It is, therefore, the umbrella organization of employers in the Organised Private Sector of Nigeria.
NECA provides a platform for private sector employers to interact with the government, labour, communities and other relevant institutions in and outside Nigeria for the purpose of promoting a harmonious business environment that will engender productivity and prosperity for the benefit of all. NECA is not a trade union but a dynamic and highly respected professional body registered under the Company and Allied Matters Act 1990.
