Abuja: The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, stated that Nigeria’s ongoing tax reforms are structured to build a globally competitive, equitable, and fiscally sustainable economy. This announcement was made during the 28th annual tax conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja.
According to News Agency of Nigeria, the conference, themed ‘Tax Reforms and Global Relevance: Positioning Nigeria’s Tax System for a Sustainable Future’, highlighted the importance of these reforms in supporting Nigeria’s long-term development aspirations and economic resilience. Oyedele emphasized that the theme aligns with the government’s commitment to developing a tax system that encourages investment, promotes fairness, and enhances sustainable economic growth nationwide.
Oyedele pointed out that the global economic transformation necessitates the modernization of fiscal systems as digital economies, shifting supply chains, and mobile capital increasingly influence competitiveness and national economic stability. He noted that citizens now demand transparency, accountability, and improved public services, stressing the risks countries face if they fail to modernize tax systems, including weakened resilience and declining investor confidence.
The Finance Minister acknowledged longstanding weaknesses within Nigeria’s tax administration, such as multiple taxation, weak compliance, and inconsistent enforcement practices, which have previously discouraged business growth and created a perception of unfairness among taxpayers. He asserted that the new tax reforms aim to establish a stronger fiscal foundation capable of supporting economic growth, encouraging investment, and improving trust between the government and taxpayers.
Furthermore, the new framework seeks to simplify taxation, enhance revenue collection, and align tax administration with broader economic objectives. Oyedele mentioned that the reforms incorporate global best practices while addressing local economic and social realities, highlighting exemptions for low-income earners to ensure fairness within the national tax structure.
Mr. Innocent Ohagwa, President of the CITN, commended the government’s efforts in enacting comprehensive tax reforms and underscored the significance of the annual conference as Africa’s largest gathering of tax professionals. He urged tax professionals to maintain transparency and accountability while supporting the implementation of reforms through technical competence and ethical conduct.
Dr. Tope Fasua, Special Adviser to the President on Economic Affairs, noted that the recent tax reforms are crucial for economic growth and sustainable revenue generation. He highlighted the President’s swift action in establishing the Fiscal Policy Committee in 2023, which led to Nigeria’s most comprehensive tax review in over 35 years. Fasua reported that the reforms have consolidated numerous taxes into nine major categories and aimed to eliminate unauthorized collections nationwide.
The government targets an increase in Nigeria’s tax-to-GDP ratio from six percent to 10 percent within three years, with an interim growth level of 18 percent, indicating a significant shift toward taxation-driven revenue generation.