By Favour Pius
As Nigeria transitions into a new tax regime, industry leaders and policy experts have raised concerns over the capacity of businesses to adjust, warning that poor transition planning could heighten operational risks and weaken productivity in the short term.
The concerns came to the fore at an advocacy roundtable hosted by the Chartered Institute of Personnel Management of Nigeria (CIPM), where insurers, economists, and human resource professionals examined the implications of the reforms on corporate Nigeria.
Speaking at the session, General Counsel and Human Resource Director at AXA Mansard Insurance Plc, Omowunmi Mabel Adewusi, said organizations must move beyond compliance and adopt structured change management strategies to navigate the transition effectively.
Tax reforms of this scale come with operational complexities. There needs to be a serious change management strategy that every employer must embark upon, she said, noting that internal systems, policies, and workforce structures must be aligned with the evolving regulatory framework.
She stressed that transparent communication would be critical to maintaining stability within organizations, urging employers to engage employees proactively to reduce uncertainty.
Employers need to be more open, more transparent, and more understanding as they move towards adopting the new tax framework, Adewusi added.
Experts at the forum echoed similar concerns, stressing that the transition phase could pose significant challenges, particularly for small and medium sized enterprises.
President of the CIPM,Olusegun Mojeed, said the reforms would have direct implications on workforce management and payroll systems.
Tax reforms will impact compensation structures, employee benefits, and compliance processes, HR professionals must take the lead in helping organizations adapt without disrupting productivity, he said.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, warned that while the reforms are necessary, implementation must be carefully managed to avoid unintended consequences.
The transition phase is critical. Businesses are already dealing with cost pressures, and any abrupt adjustment without adequate clarity could create disruptions. There must be consistency in policy implementation, Yusuf said.
Also speaking, Managing Director of Cowry Asset Management Limited, Johnson Chukwu, noted that the reforms could ultimately strengthen the business environment if properly implemented.
Companies that proactively invest in compliance systems and governance frameworks will be better positioned to benefit from a more transparent and predictable tax system, he said.
A tax consultant and partner at KPMG Nigeria, Wole Obayomi, added that many organizations are still unprepared for the operational impact of the reforms.
Beyond understanding the law, companies need to retool their processes, refrain staff, and upgrade systems, without this, compliance gaps could expose them to penalties, he said.
Despite the concerns, stakeholders expressed optimism that the reforms could enhance Nigeria’s economic competitiveness over time by improving transparency, broadening the tax base, and strengthening fiscal sustainability.
Adewusi noted that businesses, including startups, should see the reforms as an opportunity to strengthen internal processes and build more resilient enterprises capable of thriving in a more structured regulatory environment.
For insurers and other financial sector players, the development also presents an opportunity to deepen advisory roles, as companies increasingly seek guidance on risk management, governance, and compliance.
However, stakeholders maintained that the success of the reforms will depend largely on how effectively both government and the private sector manage the transition, warning that without coordinated action, short-term disruptions could outweigh the long-term gains.
