The Abuja Chamber of Commerce and Industry (Abuja Chamber of Commerce and Industry) has called on the federal government to suspend penalties on late tax filings for up to two years, giving businesses time to adjust to Nigeria’s new tax laws and compliance systems.
The appeal was made by Dr. Aliyu Hong, Chairman of the National Policy Advocacy Centre (NPAC) under the chamber, who said many business owners are still struggling to understand the requirements and digital processes introduced under the new tax framework.
Speaking in an interview in Abuja, Hong said enforcement of penalties should be delayed until taxpayers are fully familiar with the system.
“Online tax submission platforms should be properly tested and widely understood before enforcement of penalties for non-compliance,” he said.
Hong argued that a one- to two-year moratorium on penalties was necessary to allow businesses adapt to the new system without being punished for initial compliance challenges.
“Government should allow a one or two-year moratorium on penalties as taxpayers are still learning the new tax system,” he said.
He also urged authorities to prioritise the stability and reliability of digital tax infrastructure before strict enforcement begins.
“Government should also prioritise building reliable online tax infrastructure before enforcing strict compliance measures,” he said.
Hong added that penalties should only take effect once the system is stable, fully tested, and widely understood by taxpayers.
According to him, the chamber recently held a tax roundtable aimed at improving awareness and understanding of the new tax framework among business operators.
He said the engagement was designed to simplify compliance requirements and help stakeholders better understand their obligations under the new laws.
Hong, who also serves as Second Deputy President of the chamber, noted that many Nigerians still lack adequate understanding of the reforms and their practical implications.
He further said that implementation structures for the tax laws were still being developed and not yet fully coordinated.
Beyond tax administration, Hong warned that Nigeria’s broader business environment remains challenging, especially due to high operating costs faced by firms.
He noted that many businesses are forced to provide their own electricity, water, and security, significantly increasing production expenses.
Hong also cautioned that local firms could struggle to compete if importation is not properly regulated to protect domestic industries.
He urged the government to adopt a gradual implementation approach to tax reforms while also addressing infrastructure gaps and creating a more supportive environment for business growth and job creation.
