SMEDAN Engages SMEs On Benefits Of New Tax Reform Bills

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched a nationwide engagement initiative to educate small and medium enterprises (SMEs) on the implications and benefits of the proposed Tax Reform Bills.

This effort seeks to address misconceptions, provide clarity, and ensure informed participation in the legislative process by key stakeholders, including local administrators.

According to a recent statement from Mr. Peter Adeshina, Special Adviser on Media to the Director-General (DG) of SMEDAN, the reforms propose several SME-friendly measures, including raising the tax exemption threshold from ₦25 million to ₦50 million in annual turnover. DG of SMEDAN, Mr. Charles Odii, emphasised that these reforms aim to support the growth of SMEs, which play a pivotal role in Nigeria’s economy.

“We want SMEs to fully understand the implications of these bills and be adequately represented in the ongoing legislative process. Proposals such as the consolidation of taxes, elimination of nuisance levies, expansion of exemptions, and zero VAT on exports and essential goods reflect the true wishes of SMEs as identified during previous engagements and surveys,” Mr. Odii stated.

With SMEs accounting for over 90 percent of businesses in Nigeria and more than 80 percent of employment, the proposed reforms target reducing operational costs by eliminating arbitrary taxes and promoting accountability among relevant authorities. He stressed the importance of these changes in fostering economic growth and empowering SMEs to thrive.

The engagement sessions also aim to dispel misinformation and counter fear-mongering surrounding the bills, ensuring stakeholders are well-informed. SMEDAN’s outreach is positioned as a crucial step towards productive discussions and the successful implementation of the proposed reforms.