New findings show businesses remain weighed down by overlapping taxes and levies, even as government reforms aim to simplify Nigeria’s tax system….
A new survey by the Central Bank of Nigeria (CBN) has revealed that multiple taxation remains the biggest challenge facing businesses across the country, despite sweeping tax reforms introduced by the Federal Government earlier this year.
The CBN’s July 2026 Business Expectations Survey found that 70.8 percent of respondents identified high and multiple taxation as their most significant business obstacle, placing it ahead of insecurity, high interest rates, and other long-standing economic concerns.
The findings suggest that while the Tinubu administration has rolled out major tax reforms designed to simplify tax administration and eliminate overlapping levies, many businesses are yet to feel the expected benefits.
According to the survey, insecurity ranked as the second biggest challenge with a score of 69.7, followed by high interest rates at 66.3.
Businesses also cited an unfavourable political climate (62.2), high bank charges (62.0), intense competition (61.1), unclear economic laws (58.4), financial constraints (56.6), and poor infrastructure (55.1) among the factors limiting business growth.
The report indicates that taxation-related issues continue to rank above every other business concern, highlighting persistent complaints over multiple taxes and levies across different levels of government.
While concerns over taxation remain high, businesses expressed growing optimism about the foreign exchange market.
Respondents expect the naira to strengthen gradually against the U.S. dollar over the coming months. Exchange rate expectation indices improved from 4.7 for the current month to 16.1 for the following month, rising further to 25.8 over the next three months and 30.7 within six months.
Businesses anticipate lending rates will stay relatively high in both the short and medium term, with borrowing rate indices remaining around 18 to 19 points. According to the CBN, this suggests that while borrowing costs may ease slightly, access to affordable credit is likely to remain constrained.
Overall, the survey points to improving confidence in exchange rate stability but continued concerns over the high cost of doing business.
The survey comes months after the Federal Government launched one of Nigeria’s most ambitious tax reform programmes in decades.
In June 2025, President Bola Tinubu signed into law four major tax reform bills covering tax administration, revenue collection, and the establishment of new tax institutions. The reforms officially took effect in January 2026 with the objective of simplifying the country’s tax system, reducing duplication, and improving compliance.
Since then, the government has introduced additional measures to support implementation. In March 2026, it launched a presumptive tax framework for Micro, Small and Medium Enterprises (MSMEs) to simplify compliance and encourage businesses operating in the informal sector to formalise.
Authorities also banned the collection of road taxes, levies, and related charges through checkpoints as part of efforts to curb multiple taxation.
Despite those initiatives, the latest CBN survey suggests many businesses continue to encounter overlapping taxes and levies, indicating that implementation challenges remain.
The concerns raised by businesses come even as government tax collections continue to increase.
Data from the National Bureau of Statistics (NBS) shows Nigeria generated ₦2.42 trillion in Value Added Tax (VAT) during the first quarter of 2026, representing a 17.06 percent increase from the ₦2.07 trillion recorded in the same period of 2025. VAT revenue also rose by nearly 10 percent compared with the fourth quarter of 2025.
Of the total VAT collected, local transactions accounted for ₦1.11 trillion, foreign VAT contributed ₦830.47 billion, while import VAT generated ₦477.55 billion.
The Centre for the Promotion of Private Enterprise (CPPE) has previously cautioned that while the reforms are necessary, their implementation must be carefully managed to avoid placing additional compliance burdens on businesses, particularly those operating within Nigeria’s large informal economy.
