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Despite the Federal Government’s sweeping tax reforms aimed at simplifying Nigeria’s fiscal system, multiple taxation remains the biggest obstacle facing businesses, according to the latest Business Expectations Survey (BES) released by the Central Bank of Nigeria (CBN).
The survey for July 2026 found that businesses continue to grapple with overlapping taxes and levies imposed at different levels of government, underscoring concerns that the benefits of recent reforms have yet to be fully felt by operators across the economy.
Multiple Taxes Rank Above Insecurity and High Interest Rates
According to the CBN survey, 70.8 per cent of respondents identified high and multiple taxation as their most pressing business challenge, making it the highest-ranked constraint facing firms nationwide.
Insecurity followed closely with an index score of 69.7, while high interest rates ranked third at 66.3.
Other major concerns highlighted by businesses included an 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 findings suggest that taxation-related issues continue to outweigh other structural challenges despite ongoing government efforts to improve the country’s business environment.
Tax Reforms Yet to Deliver Full Relief
The latest survey comes months after the Federal Government rolled out one of Nigeria’s most comprehensive tax reform programmes in decades.
The reforms were designed to streamline tax administration, reduce duplication of taxes, improve compliance and make doing business easier.
However, the CBN report indicates that many businesses are yet to experience meaningful relief, with multiple taxation continuing to place pressure on operating costs and profitability.
Industry stakeholders have repeatedly argued that while federal tax reforms represent an important step forward, inconsistent implementation across state and local government levels remains a major challenge.
Businesses Remain Positive on Naira Outlook
Despite concerns over taxation and financing costs, the survey revealed growing optimism about the country’s foreign exchange outlook.
Businesses expect the naira to strengthen gradually against the US dollar over the coming months, with exchange rate expectation indices improving from 4.7 for the current month to 16.1 for the following month, 25.8 over the next three months, and 30.7 within the next six months.
The improved outlook reflects expectations that recent monetary and fiscal measures could contribute to greater stability in Nigeria’s foreign exchange market.
Borrowing Conditions Continue to Worry Firms
While companies expressed confidence in the exchange-rate outlook, many remain cautious about access to finance.
High interest rates continue to rank among the leading constraints facing businesses, reflecting the impact of the Central Bank’s tight monetary policy, which has pushed borrowing costs to elevated levels in its effort to curb inflation.
Analysts say the combination of expensive credit and multiple taxation continues to weigh on investment decisions, particularly for small and medium-sized enterprises that rely heavily on bank financing.
Implementation Seen as the Missing Link
The survey highlights what many business operators describe as a gap between policy design and implementation.
While recent tax reforms are intended to simplify Nigeria’s fiscal landscape, businesses argue that overlapping levies, inconsistent enforcement and multiple revenue collection agencies continue to create an additional financial burden.
Economic observers say achieving the full objectives of the reforms will require stronger coordination among federal, state and local authorities to eliminate duplicated taxes and improve compliance without increasing the cost of doing business.
Business Environment Still Under Pressure
The CBN findings reinforce the view that Nigerian businesses continue to operate in a challenging environment shaped by fiscal pressures, security concerns and elevated financing costs.
Although optimism over exchange-rate stability offers some encouragement, sustained improvements in the business climate are expected to depend on effective implementation of tax reforms, reduced cost pressures and policies that encourage investment and private sector growth.
For many businesses, the latest survey suggests that simplifying Nigeria’s tax system remains a critical step toward improving competitiveness and supporting long-term economic expansion.
