The Nigeria Economic Summit Group (NESG) has called on the National Assembly to urgently amend key economic laws, including the Nigeria Tax Act 2015, the Petroleum Industry Act (PIA), and the Electricity Act 2023, as part of efforts to strengthen Nigeria’s business environment and attract investment. The call followed the presentation of a policy brief …
NESG Urges Overhaul of Tax, Power, Oil Laws to Fix Nigeria’s Business Climate
The Nigeria Economic Summit Group (NESG) has called on the National Assembly to urgently amend key economic laws, including the Nigeria Tax Act 2015, the Petroleum Industry Act (PIA), and the Electricity Act 2023, as part of efforts to strengthen Nigeria’s business environment and attract investment.
The call followed the presentation of a policy brief in Abuja on priority legislative actions needed to foster a more enabling climate for businesses. The research was conducted by the Ernest Shonekan Centre for Legislative Reforms and Economic Development a subsidiary of NESG in partnership with the Policy and Legal Advocacy Centre (PLAC), with funding support from the Foreign, Commonwealth & Development Office (FCDO).
Presenting the report, Lead Consultant, Shola Omoju, highlighted several legal provisions that require urgent review to reduce regulatory bottlenecks and improve ease of doing business.
Beyond the major reform laws, the group identified other legislations needing amendment, including the Nigerian Oil and Gas Content Development Act 2010, Environmental Impact Assessment Act, Gas Flaring Prohibition and Punishment (Amendment) Bill, and the Banks and Other Financial Institutions Act (BOFIA).
On the Nigeria Tax Act, NESG stressed the need to align the definition of small businesses with provisions in the Companies and Allied Matters Act (CAMA), noting the critical role of small and medium-scale enterprises in driving GDP growth, employment, and exports.
The group also recommended amending Section 20(4) of the Act to allow businesses deduct foreign currency expenses using official exchange rates from the Central Bank of Nigeria or other approved channels. According to the report, this would enable firms sourcing forex at higher rates to fully recover costs.
NESG further warned that compliance costs, data privacy concerns, and cybersecurity risks associated with digital fiscal tools under Section 157 of the Act must be carefully reviewed, particularly to avoid placing undue financial pressure on micro, small, and medium enterprises.
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On the Electricity Act 2023, the group called for stronger collaboration between state governments and distribution companies to improve power supply and attract investment into the sector. It noted that state-level legal frameworks must support a business-friendly environment capable of delivering returns on investment.
NESG urged state governments to tackle structural challenges such as energy theft, inadequate metering, poor revenue collection, and weak protection of power infrastructure. It also recommended targeted incentives and support mechanisms to expand metering in low-income and rural communities, improving tariff collection and overall sector viability.
Regarding the Petroleum Industry Act, NESG maintained that while the law marked a significant reform milestone, gaps remain that must be addressed to fully unlock opportunities in Nigeria’s oil and gas sector and sustain investor confidence.
Nigeria’s current economic reform agenda is anchored on three major frameworks — the 2025 tax reforms, the PIA, and the Electricity Act 2023 — all aimed at modernising fiscal systems, improving governance, and driving investment across key sectors.
However, NESG cautioned that the simultaneous implementation of these reforms has exposed areas of policy misalignment, particularly where tax provisions intersect with sector-specific regulations in the oil, gas, and power industries, creating uncertainty for investors.
Supporting the call, Executive Director of PowerUp Nigeria, Adetayo Adegbemle, noted that ongoing amendments to the Electricity Act in the House of Representatives present an opportunity to refine the law, though he urged clarity on NESG’s proposals.
Similarly, National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), Colman Obasi, described the PIA as a strong foundation that can be improved over time.
He added that while legislative reforms are necessary, effective implementation remains critical to achieving meaningful impact across Nigeria’s economic landscape.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
