The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched a nationwide engagement exercise to create awareness and provide clarity on the proposed tax reform bills.

The aim is to deliver significant relief to small and medium enterprises (SMEs).

The initiative, led by Charles Odii, director-general, SMEDAN, seeks to educate SMEs on the implications and opportunities presented by the reforms.

The engagement is also expected to address misconceptions and foster an informed understanding among key stakeholders, including business membership organisations (BMOs) and local administrators.

According to a statement signed by Peter Adeshina, special assistant on media and publicity to the SMEDAN, the campaign will feature participation from representatives of BMOs and other associations.

A key session at the event will be led by Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, the statement added.

Highlighting the benefits of the reforms, Odii noted that the bills propose raising the tax exemption threshold for SMEs from N25 million to N50 million in annual turnover. The move aims to exempt more small businesses from taxes, consolidating levies and eliminating arbitrary charges that increase operational costs.

“We want SMEs to fully understand the implications of these bills and be adequately represented in the ongoing legislative process. Our priority is for SMEs to reap the full benefits, which will ultimately boost the economy, given that they are the engine of growth,” Odii stated.

The reforms also include provisions for zero VAT on exports and essential goods, expansion of tax exemptions, and the consolidation of multiple taxes into a simpler structure. These measures reflect feedback gathered from previous engagements with SMEs and surveys conducted nationwide.

Odii emphasised the importance of understanding enforcement mechanisms, noting that SMEs must be equipped to hold relevant authorities accountable for proper implementation. “With over 90 percent of businesses in the country and more than 80 percent of employment dependent on SMEs, it is crucial to eliminate arbitrary taxes and create a more enabling environment for their growth,” he added.

The engagement sessions will also focus on dispelling misinformation and reducing fear-mongering surrounding the bills. Commending the Presidential Fiscal Policy and Tax Reforms Committee for prioritising SMEs, Odii reaffirmed SMEDAN’s commitment to driving growth and prosperity for the sector.