The Historica Nigeria

Stakeholders Call for Suspension of New Tax Law Over SME Concerns

Professionals, academics, civil society actors, and representatives of Small and Medium Enterprises (SMEs) in Kano have urged the Federal Government to suspend the implementation of the recently gazetted Nigeria Tax Administration Act (NTAA) 2025.

The appeal followed a one-day stakeholders’ dialogue held at the Centre for Information Technology and Development (CITAD) on Sunday, 21 December 2025, in collaboration with the Association of Professional Bodies of Nigeria (APBN), Kano Chapter.

The dialogue brought together tax administrators, economists, SME operators, and civil society actors to discuss the impact of the new tax law on small businesses, sub-national economies, and constitutional governance.

While participants acknowledged that the NTAA aims to expand the tax net, simplify tax administration, and promote digital compliance, they warned that structural and procedural challenges such as weak public awareness, low SME digital readiness, and poor record-keeping could place undue burdens on small businesses.

Stakeholders expressed serious concern over alleged discrepancies between the versions of the NTAA passed by the National Assembly and the gazetted version, the inclusion of punitive clauses, limited public consultation, and foreign technical partnerships that may compromise Nigeria’s fiscal data sovereignty.

In a communiqué delivered by Dr. Ahmad Muhammad Sarari and signed by representatives of Kano professional bodies, including Engr. YZ Yau, Dr. Muhammad Awwal Haruna, and Engr. Murtala Gara, participants called on the relevant authorities to suspend the implementation of the NTAA pending a comprehensive legislative review, ensure full constitutional scrutiny, protect national tax data from foreign access, remove punitive clauses, introduce SME-friendly incentives, and enhance capacity-building to encourage voluntary compliance.

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Highlighting data protection concerns, Engr. Rabi’u Haruna warned that national tax information may have been exposed to foreign partners in violation of the Nigeria Data Protection Commission Act, which safeguards data privacy and ensures responsible handling of national data.

The stakeholders further cautioned that implementing the contested tax laws without addressing these concerns could trigger litigation, constitutional challenges, and a loss of public trust in Nigeria’s tax system.

They pledged continued collaboration with civil society organizations and SME associations to pursue lawful remedies should transparency and legislative integrity continue to be undermined.

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