Abuja: The Nigerian Association of Small and Medium Enterprises (NASMEs) has commended the Federal Government’s introduction of the 2025 Tax Act, highlighting it as a significant step towards fostering inclusive economic growth and strengthening enterprise resilience. This perspective was shared by Dr. Abdulrashid Yerima, the President of NASMEs, during an interview with the News Agency of Nigeria (NAN) in Abuja.
According to News Agency of Nigeria, the tax reforms have been cautiously welcomed by small and medium enterprises across Nigeria and West Africa. Dr. Yerima expressed optimism about the exemption of low-income earners from tax and the upward revision of the turnover threshold for small businesses from N25 million to N100 million, which he described as a major shift towards a more equitable tax system. This adjustment aligns with global progressive taxation practices and supports income redistribution while stimulating enterprise growth.
Furthermore, Dr. Yerima highlighted the timeliness of these reforms amidst current challenges such as high exchange rates and commercial bank lending rates that exceed 37 percent, which make it difficult for small businesses to thrive. He praised the removal of the previous 0.5 percent turnover tax on loss-making businesses, labeling it as a corrective measure that encourages innovation and supports startup survival.
The new tax law is said to enhance Nigeria’s ease of doing business by simplifying compliance processes and offering exemptions that reduce the cost and complexity of tax filing for small firms. Dr. Yerima underscored the shift in philosophy from revenue extraction to economic stimulation and inclusive growth, which could bolster investor confidence with a clearer, fairer, and more predictable tax regime.
He noted that both domestic and foreign investors are more likely to engage in risk-taking when the tax environment supports innovation, particularly for early-stage enterprises. This, in turn, encourages private equity and venture capital investment, benefiting MSMEs recognized as engines of economic transformation. The reforms also align with the objectives of the African Continental Free Trade Area (AfCFTA) and the ECOWAS Trade Liberalisation Scheme (ETLS).
Dr. Yerima described the 2025 Tax Act as a maturing framework prioritizing resilience, innovation, and inclusive development. He called for ongoing stakeholder engagement, public awareness campaigns, and reforms in tax administration to ensure effective implementation. NASMEs, alongside the ACORE Small Business Coalition, remains committed to collaborating with the government, international partners, and the private sector to ensure that Nigeria’s tax reforms yield tangible benefits for small businesses and the wider economy.