03/09/2025
The news of the Federal Government achieving its revenue target for the year in August, recording over ₦20 trillion in collections, largely from the non-oil proceeds - is worth applauding. This is a significant improvement compared to the previous years.
It shows that diversification is possible. More untapped sectors should be given attention, and SME can make a great difference to the economy if prioritized. Especially with the government’s new tax reforms aiming at reducing the tax burden on SMEs, points in the right direction.
But, beyond the tax reform, SMEs still face two major hurdles—limited access to capital and weak infrastructure. There are talented and resilient minds that need enabling environments. Until these barriers are addressed, the full potential of SMEs to sustain revenue growth will remain out of reach.
China’s story is proof of what’s possible. By pairing supportive tax policies with financing and infrastructure, SMEs became the backbone of its economy—contributing over 60% of GDP.
Nigeria has the same opportunity. Enabling the SMEs to thrive can sustain this revenue target achievement and it could be realized even within two quarters of the year with less tax burden on businesses. It will encourage start ups to grow and the economy will bloom.
Now, the questions are: how quickly will these challenges be addressed? How can the revenue generation surpassing be sustained without tax burden on businesses?
What do you think—are tax reforms enough, or do we need deeper structural change to truly unleash SME potentially?
In Davche Group, we believe that Nigerians are productive and can be more 💪
