The Independent Media and Policy Initiative (IMPI) says that the new tax laws and a stable macroeconomy are two of the things that would help the Nigerian economy grow by at least 5.5% this year.
The think tank’s most recent policy statement, issued by its Chairman, Dr. Omoniyi Akinsiju, said that 2026 would be a positive year for the country since the federal government is committed to continuing reforms.
It claimed, “We believe that the year 2026 will be Nigeria’s best year yet because we understand the history of the current events and the philosophical basis of the economy.”
“We didn’t get to this prediction easily. First, as both international and domestic economic participants can now confirm, the Nigerian economy has been well-managed since the reforms began in 2023.
“We praise the Federal Government for sticking to its guns even when the economy was having problems at first. The economy was adjusting to the reforms’ hypodermic effect, which caused these storms.
“The tax revisions that went into effect on January 1, 2026, are expected to make it easier for Nigeria to collect taxes.
The federation’s income is predicted to grow even more because of the phased implementation of tax changes, stricter compliance enforcement, more use of digital revenue systems, and better remittance discipline across all revenue-generating agencies.
“Nigeria’s tax reforms will also change the way manufacturers do business, invest, and plan for growth. The bill shows that the government is moving toward a more coordinated and incentive-driven fiscal framework, especially for the manufacturing sector.
The new Economic Development Tax Incentives, which focus on important areas like manufacturing, are at the heart of the changes. Companies that meet the requirements can get an Economic Development Incentive Certificate, which gives them a five percent tax credit on qualified capital expenditures for up to five years. Companies that reinvest their profits may be able to get longer incentive periods. Some manufacturing-related transactions are also not subject to stamp duties.
IMPI said that more private sector operators getting money in the last few years is one sign that the economy is booming.
“A major sign of an economy that is growing is that private sector operators are buying more capital.Nigerian businesses, especially in the oil, gas, telecommunications, banking, industrial goods, and agriculture sectors, are buying land, buildings, and equipment to grow their businesses and improve their positions in the market.
“Key deals in 2025 included MTN Nigeria Communications Plc, which had the highest value at N539.6 billion, Presco Plc’s purchase of a 10,000-hectare plantation in Cross River, and Ellah Lakes Plc’s purchase of more than 11,700 hectares over four states, among others.
“Large-scale expenditures are meant to increase the ability to meet consumer demand and lower the need for imports. This has a direct effect on productivity. According to the Absa Africa Financial Markets Index 2025, Nigeria has moved up 15 places to 4th in Africa for how easy it is to get foreign exchange.
“FX accessibility is a big part of how easy and convenient it is to do business, especially for foreign direct investors.
“The country has gotten a lot better over the years at making it easy for investors to get and use foreign exchange.” The Central Bank of Nigeria (CBN) made big changes to the FX market, which led to this success.
Changes in financial accounts also helped the economy as a whole. For example, Foreign Direct Investment inflows rose to $720 million in the third quarter of 2025, and portfolio investment reached $2.51 billion. This shows that more non-residents are investing in domestic debt and equity markets.
IMPI said, “We see a further rise in foreign direct investment in 2026 along with increased access to FX.”
The think tank also thought that macroeconomic stability would continue, which it said would boost manufacturing output.
“Macroeconomic stability is the most important thing for any effort to boost private sector development and economic growth.”
“Cross-country regression analysis employing a substantial sample of nations indicates that growth, investment, and productivity are positively correlated with macroeconomic stability, characterized by equilibrium in essential economic relationships, such as domestic demand and output, the balance of payments, fiscal revenues and expenditures, and savings and investment,” it stated.
This is how:
About the Author
