Multiple taxation remains the biggest constraint facing Nigerian businesses despite the Federal Government’s sweeping tax reforms, a new Central Bank of Nigeria (CBN) survey has revealed.
The CBN’s July 2026 Business Expectations Survey showed that 70.8 per cent of businesses identified high and multiple taxation as their most pressing challenge.
Insecurity ranked second with 69.7 points, while high interest rates followed at 66.3 points.
Other major constraints identified by businesses included an unfavourable political climate, 62.2 points; high bank charges, 62.0 points; competition, 61.1 points; unclear economic laws, 58.4 points; financial constraints, 56.6 points; and poor infrastructure, 55.1 points. (Nairametrics)
The findings suggest that businesses are yet to feel significant relief from the government’s tax reform programme, despite measures introduced to simplify tax administration, eliminate duplication and improve the ease of doing business.
President Bola Tinubu signed four major tax reform laws in June 2025, with the new framework taking effect in January 2026. The reforms include the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act and Joint Revenue Board (Establishment) Act.
The government subsequently introduced additional measures, including a presumptive tax framework for micro, small and medium enterprises (MSMEs) and restrictions on the collection of certain road taxes, levies and related charges through checkpoints.
Despite these interventions, the CBN survey indicates that businesses continue to contend with multiple taxes and levies imposed across different levels of government.
N2.42trn VAT collected in Q1
The persistent tax burden comes as government revenue from Value Added Tax (VAT) continues to rise.
Data from the National Bureau of Statistics (NBS) showed that Nigeria generated N2.42 trillion in VAT revenue in the first quarter of 2026, representing a 17.06 per cent increase from N2.07 trillion recorded in the corresponding period of 2025.
The Q1 2026 figure also represented a 9.98 per cent increase from the N2.20 trillion collected in the fourth quarter of 2025.
Local VAT payments accounted for N1.11 trillion, while foreign VAT generated N830.47 billion and import VAT contributed N477.55 billion. (Nairametrics)
Businesses see Naira strengthening
Beyond taxation, the CBN survey showed improving expectations about the foreign exchange market.
Businesses expect the naira to strengthen gradually against the US dollar, with the exchange-rate expectation index rising from 4.7 for the current month to 16.1 for the next month, 25.8 over three months and 30.7 over six months.
However, businesses remain cautious about borrowing costs, with respondents expecting lending rates to remain relatively high in the near and medium term.
The CBN said the outlook points to a possible marginal easing in financing conditions, but warned that borrowing costs are still expected to remain tight.
The survey therefore presents a mixed picture: businesses are becoming more optimistic about the naira and broader economic conditions, but high taxation, insecurity and elevated interest rates continue to weigh heavily on the cost of doing business. (Nairametrics)
The Centre for the Promotion of Private Enterprise (CPPE) has previously cautioned that the implementation of the tax reforms must not create excessive compliance costs, particularly for Nigeria’s large informal business sector.
