US firm complained about paying 67 taxes — Envoy

The United States (US) Ambassador to Nigeria, Richard Mills has identified multiple taxation as one of the major setbacks US companies face in doing business in Nigeria. The Ambassador stated this yesterday during a fireside chat on the theme “Toward a Robust U.S.-Nigeria Commercial and Investment Partnership,” saying he received feedback that a US company […]

The United States (US) Ambassador to Nigeria, Richard Mills has identified multiple taxation as one of the major setbacks US companies face in doing business in Nigeria.

The Ambassador stated this yesterday during a fireside chat on the theme “Toward a Robust U.S.-Nigeria Commercial and Investment Partnership,” saying he received feedback that a US company pays sixty-seven taxes.

“One U.S. business told me that their operations in Nigeria, for instance, they paid 67 different federal taxes, including a tax on wheelbarrows,” he said.

He however commended the federal government over the ongoing tax reform, stressing that it would ease the means of doing business.

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“We have also seen tax reform move forward, which again has been a big concern for U.S. businesses. So the tax reform bill is very important. So those kinds of macroeconomic reforms, that’s what we wanted to see and what U.S. businesses wanted to see,” he said.

He highlighted the efforts to strengthen commercial ties with Nigeria, saying plans are underway to connect local entrepreneurs to the U.S. capital markets. 

 

…To link Nigerian entrepreneurs with 300,000 businesses 

“We want to connect what we understand and have identified as over 300,000 U.S. export-ready businesses who are interested in working in Africa.

“We want to connect, as I said, entrepreneurs and Nigerian businesses to the U.S. capital market, so they can take advantage of our efficient liquid capital markets,” he said.

He emphasised on the recently launched U.S. Commercial Diplomacy Strategy for Sub-Saharan Africa, saying it is aimed at removing barriers to doing business and encouraging more American companies to engage with African markets, particularly Nigeria.

He acknowledged that reforms are necessary to enhance the effectiveness of these agencies and confirmed that improving their agility is a priority for the U.S. administration.

Ambassador Mills also highlighted the importance of feedback from the private sector in shaping U.S. policy, noting that the embassy regularly consults both American and Nigerian business communities to understand their challenges.

“I want to commend the Nigerian government at both federal and state levels for being responsive. When we present them with business-related concerns raised by U.S. firms, they do listen.

“There have been notable macroeconomic reforms in Nigeria in recent years though painful for many, they are laying the groundwork for a more vibrant and stable economy,” he said.

He emphasized on the urgent need for improvements in the country’s power infrastructure.

However, he warned that persistent issues with electricity distribution and transmission remain a major constraint.

“Electric power distribution, transmission capacity is still a serious blockage for a lot of U.S. firms here especially in the tech sector, where they are very interested in taking advantage of Lagos and the country’s incredible talent in the tech field.

He harped on the importance of tackling corruption and reforming regulatory frameworks for businesses to thrive.

“The country also needs, of course, to continue working to root out corruption, issues of corruption and money laundering,” he said.