Despite sweeping tax reforms introduced by the Federal Government earlier this year, a new survey by the Central Bank of Nigeria (CBN) shows that multiple taxation remains the biggest challenge confronting businesses across Nigeria.

According to the CBN’s Business Expectations Survey for July 2026, 70.8% of respondents identified high and multiple taxation as their most pressing business constraint, ahead of insecurity and high interest rates.

The findings suggest that although the Tinubu administration has introduced far-reaching reforms aimed at simplifying Nigeria’s tax system and improving the ease of doing business, many businesses are yet to experience meaningful relief from the burden of multiple taxes and levies.

What the survey is saying

The CBN survey shows that businesses continue to face several structural challenges despite improvements in some macroeconomic indicators.

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  • The report showed that insecurity followed multiple taxation at 69.7, while high interest rates ranked third at 66.3.
  • Other major constraints included unfavourable political climate (62.2), high bank charges (62.0), competition (61.1), unclear economic laws (58.4), financial constraints (56.6), and poor infrastructure (55.1).
  • The report indicates that taxation-related issues continue to outweigh other business concerns, underscoring the need for more effective implementation of the government’s tax reform agenda.

The survey also showed growing optimism about Nigeria’s foreign exchange outlook. Businesses expect the naira to appreciate gradually against the U.S. dollar over the coming months, with exchange rate expectation indices rising from 4.7 for the current month to 16.1 for the next month, 25.8 over the next three months, and 30.7 over the next six months.

However, businesses remain cautious about financing conditions.

Respondents expect borrowing rates to remain elevated in the near and medium term. Borrowing rate indices remained consistently positive at around 18–19 points, indicating expectations of only a marginal decline in lending costs.

The CBN said the outlook suggests financing conditions may ease slightly but are expected to remain relatively tight. Overall, the survey points to improving exchange rate expectations but persistent concerns over the cost of doing business.

Get up to speed

The findings come months after the Federal Government launched one of Nigeria’s most comprehensive tax reform programmes in decades.

  • In June 2025,President Bola Tinubu signed into law four landmark tax reform bills comprising the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
  • The reforms took effect in January 2026 and are aimed at simplifying tax administration, eliminating duplication and improving revenue collection.
  • Since then, the government has introduced additional measures to ease compliance.
  • In March 2026, the Federal Government rolled out a presumptive tax framework for Micro, Small and Medium Enterprises (MSMEs) to simplify tax compliance and encourage businesses in the informal sector to formalise.
  • The Joint Revenue Board also prohibited the collection of road taxes, levies and related charges through checkpoints, including the use of road stickers by state and non-state actors, as part of efforts to curb multiple taxation.

Despite these initiatives, the latest CBN survey indicates that businesses continue to experience multiple taxation across different levels of government.

What you should know

Government tax revenues have continued to grow even as businesses complain about multiple taxation.

  • According to the National Bureau of Statistics (NBS), Nigeria generated N2.42 trillion in Value Added Tax (VAT) revenue during the first quarter of 2026, representing a 17.06% increase from N2.07 trillion recorded in the corresponding period of 2025.
  • VAT collections also increased by 9.98% quarter-on-quarter from N2.20 trillion recorded in the fourth quarter of 2025.
  • Local VAT payments contributed N1.11 trillion, while foreign VAT generated N830.47 billion and import VAT accounted for N477.55 billion.

The Centre for the Promotion of Private Enterprise (CPPE) had warned that Nigeria’s tax reforms must be carefully implemented to avoid placing excessive compliance burdens on the country’s large informal sector.