Nigeria’s Tax Reforms Key to Economic Growth– Finance Minister
Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, said that the ongoing tax reforms were designed to build a global, competitive, equitable and fiscally sustainable economy.
Oyedele made the statement during the 28 annual tax conference of the Chartered Institute of Taxation of Nigeria (CITN), in Abuja on Tuesday.
Theme: Tax Reforms and Global Relevance: Positioning Nigeria’s Tax System for a Sustainable Future. He said that the reform was capable of supporting the country’s long-term development aspirations and economic resilience.
Oyedele said the conference’s theme aligns with government’s commitment to building a tax system that supports investment, promotes fairness, strengthens accountability and enhances sustainable economic growth across sectors nationwide.
The minister said that the global economic transformation had forced countries to modernise fiscal systems, because digital economies, changing supply chains and mobile capital increasingly influence competitiveness and national economic stability.
He said that citizens now demand transparency, accountability, fairness and improved public services.
According to him, countries failing to modernise tax systems risk weakened resilience, inequality and declining investor confidence.
Oyedele said that the country could not afford to ignore opportunities presented by global economic changes, stressing that reforms became necessary due to longstanding weaknesses within the Nigeria’s tax administration structure.
He noted multiple taxation, weak compliance, informal economic activities, poor revenue generation and inconsistent enforcement practices as major challenges discouraging businesses and creating widespread perception of unfairness among taxpayers.
According to him, government revenue remained inadequate relative to Nigeria’s development needs, making the previous tax structure unsustainable and unsuitable for supporting long-term national economic transformation and infrastructure development.
Oyedele said that the reforms were designed to establish stronger fiscal foundations capable of supporting economic growth, encouraging investment, protecting vulnerable citizens and improving trust between government and taxpayers.
He said the new framework seeks to simplify taxation, reduce disruptions, improve revenue collection, encourage voluntary compliance and align tax administration with productivity and broader economic development objectives across the country.
According to him, competitiveness depends largely on the strength of a country’s fiscal architecture, Nigeria’s reforms incorporate global best practices while addressing local economic and social realities effectively.
The minister said that low-income earners, including minimum wage workers, were exempted from personal income tax under the reforms to protect household income and promote fairness within the national tax structure.
Oyedele said that government was creating a competitive tax environment capable of attracting investment capital, supporting enterprise growth, stimulating job creation and strengthening overall fiscal sustainability within the economy.
The minister said that authorities were modernising the tax system through expanded input tax credits and zero-tax provisions for essential goods and services to reduce inflationary pressures and production costs nationwide.
He said that businesses had consistently complained about multiple taxation and poor coordination among revenue agencies, prompting government’s decision to improve harmonisation and modernise tax administration processes nationwide.
According to him, 15 states had already adopted tax modernisation laws, while other states were expected to implement similar measures aimed at creating a more efficient and investor-friendly fiscal environment.
He commended CITN for sustaining professionalism, strengthening tax administration and shaping national fiscal policy discussions through consistent engagement with stakeholders across the country’s economic and financial sectors over the years.
The President of the CITN, Mr Innocent Ohagwa, commended President Bola Tinubu, the National Assembly and stakeholders for supporting comprehensive tax reforms culminating in enactment of four new tax laws.
He said that the reforms demonstrated government’s commitment towards strengthening Nigeria’s tax system for sustainable socio-economic growth and enhanced fiscal administration.
Ohagwa said that the CITN annual conference was Africa’s largest gathering of tax professionals, stressing the institute’s commitment to ethical standards, advocacy and fiscal reforms over four decades. Egypt Launches Transition to Electric Vehicles
He said that the conference theme focused on strengthening Nigeria’s tax system for sustainability, competitiveness and global relevance as the nation gradually shifts from oil dependence to taxation-driven revenue generation.
Ohagwa urged tax professionals to uphold transparency, accountability and compliance while supporting implementation of reforms through technical competence, ethical conduct and objective guidance to taxpayers, institutions and government agencies
He appreciated governors, ministers, lawmakers, royal fathers and tax experts for attending the conference, noting their participation reflected growing support for tax reforms and professional collaboration nationwide.
The CITN president also commended Finance Minister, the Nigeria Revenue Service under Zacch Adedeji, state revenue agencies and consulting firms for supporting efficient tax administration and institutional development nationwide.
The Special Adviser to the President on Economic Affairs, Dr Tope Fasua, said that the Nigeria’s tax reforms were critical for economic growth and sustainable revenue generation.
He said that President inaugurated the Fiscal Policy Committee immediately after assuming office in 2023 to strengthen revenue generation and improve confidence in Nigeria’s taxation framework.
According to him, the committee produced Nigeria’s most comprehensive tax review in more than 35 years, aimed at simplifying taxes and modernising fiscal administration across the country.
Fasua said that the reforms reduced numerous taxes into nine major categories, including Company Income Tax, Personal Income Tax, Value Added Tax and Capital Gains Tax nationwide.
He acknowledged persistent complaints over multiple taxation and illegal levies, especially on transporters, but government had started measures to eliminate unauthorised collections across the country.
Fasua urged tax professionals to educate citizens, interpret tax laws and uphold integrity within the fiscal system to improve public trust and voluntary tax compliance nationwide.
He said individuals earning N1 million annually and below, alongside MSMEs with turnover below M100 million yearly, were exempted from taxation under the ongoing reforms.
Fasua said that Nigeria’s tax-to-GDP ratio increased from six per cent to 10 per cent within three years, with government targeting an interim growth level of 18 per cent.
He added that government also planned reducing company income tax from 30 per cent to 25 per cent to encourage investment and improve Nigeria’s business environment.
