Abuja: The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, emphasized the significance of ongoing tax reforms in Nigeria, outlining their potential to establish a globally competitive, equitable, and fiscally sustainable economy. He addressed this during the annual tax conference hosted by the Chartered Institute of Taxation of Nigeria (CITN) in Abuja.
According to News Agency of Nigeria, Oyedele highlighted that the conference’s theme, ‘Tax Reforms and Global Relevance: Positioning Nigeria’s Tax System for a Sustainable Future,’ underscores the government’s dedication to developing a tax system that supports investment, promotes fairness, and enhances sustainable economic growth. He discussed the necessity for countries to modernize fiscal systems due to global economic transformations impacting national economic stability.
Oyedele identified several challenges within Nigeria’s current tax structure, including multiple taxation, weak compliance, and poor revenue generation, which hinder business operations and contribute to taxpayers’ perceptions of unfairness. He stressed that the reforms are intended to establish a robust fiscal foundation to support economic growth, attract investments, and foster trust between the government and taxpayers.
The reforms aim to simplify taxation, improve revenue collection, and align tax administration with broader economic objectives, incorporating global best practices while addressing local realities. Low-income earners and minimum wage workers are exempt from personal income tax to promote fairness within the tax structure. Additionally, the government is working to create a competitive tax environment to attract investment and stimulate job creation.
Modernization efforts include expanded input tax credits and zero-tax provisions for essential goods and services to reduce inflationary pressures. Oyedele noted that 15 states have already adopted tax modernization laws, with others expected to follow suit, enhancing the investor-friendly fiscal environment nationwide.
The President of CITN, Mr. Innocent Ohagwa, acknowledged the government’s commitment to strengthening Nigeria’s tax system through comprehensive reforms, highlighting the institute’s role in fostering professionalism and shaping national fiscal policy. He urged tax professionals to maintain transparency and compliance while supporting the implementation of reforms.
Dr. Tope Fasua, Special Adviser to the President on Economic Affairs, reiterated the importance of tax reforms for economic growth and sustainable revenue generation. The reforms aim to simplify tax categories and address issues of multiple taxation and illegal levies. Fasua highlighted that the tax-to-GDP ratio has increased, with further growth targets set to enhance Nigeria’s business environment.