Taiwo Oyedele, minister of Finance and Coordinating Minister of the Economy, said the reforms were aimed at building a “stronger fiscal foundation for long-term national development” rather than increasing taxation.
Speaking at the 2026 Tax Conference with the theme, “Tax Reforms and Global Relevance: Positioning Nigeria’s Tax System for a Sustainable Future” which is organized by the Chartered Institute of Taxation of Nigeria (CITN), in Abuja, he said the reforms were aimed at building a stronger fiscal foundation for long-term national development rather than increasing taxation.
Oyedele said the country’s previous tax system had been weakened by fragmented administration, multiple taxation, weak compliance and unstable revenues.
According to him,
“Countries that fail to modernise their fiscal frameworks risk losing competitiveness, discouraging investment, widening inequality, and weakening economic resilience. These are risks Nigeria cannot afford to take, and opportunities we cannot afford to lose.”
The minister pointed out that the reforms were designed to simplify taxation, reduce compliance burden, encourage investment and strengthen public trust in government.
He disclosed that minimum wage earners had been exempted from personal income tax, while measures were also being implemented to reduce the burden on low-income earners and improve business competitiveness, among others.
He said,
“Our tax reforms became necessary because, for many years, Nigeria’s tax system suffered from structural weaknesses, from non-harmonised taxes to fragmented administration, scarce and unstable revenues, weak compliance, and high levels of informality.
“Businesses faced numerous impediments from inefficient enforcement and rising compliance costs. Citizens often perceived the tax system as unfair because the burden was unevenly distributed. At the same time, revenues remained insufficient relative to our development targets.
“This model became untenable, and the system was simply unsustainable. The reforms we are implementing are therefore not about additional points of taxation. They are about building a stronger fiscal foundation for long-term national development.”
Oyedele stressed that the government’s approach was guided by a simple conviction that a good tax system should enrich the real economy, support economic growth, protect vulnerable demographics, and strengthen trust between government and citizens.
According to him, the reforms seek to simplify the tax system, improve coordination, reduce disruptions, encourage investment, promote voluntary compliance, and align taxation with productivity.
He said,
“We are moving from a framework driven by discretion and fragmentation to one anchored on clarity, certainty, and fairness.
“We do not operate in isolation. We must remain competitive, and competitiveness today depends significantly on the quality of a country’s fiscal architecture.
This is why our reforms incorporate internationally recognised best practices while remaining sensitive to Nigeria’s realities.”
According to the minister, one of the strongest complaints from businesses had been multiple taxation across different levels of government, adding that the government is working to modernise tax administration, improve coordination, and reduce the burden on taxpayers, especially low-income earners.
He said,
“If our tax system and laws are to facilitate a globally competitive economy, we must continue strengthening implementation across the federation.
“We are grateful to the states that have adopted tax modernisation laws in their various jurisdictions, and we encourage others to do the same sooner rather than later.”
Also, speaking at the conference, Mr. Innocent Ohagwa, president/ chairman of Council, Chartered Institute of Taxation of Nigeria (CITN), described taxation as a central pillar of Nigeria’s transition away from oil dependence.
Ohagwa commended the Tinubu administration, the National Assembly and other stakeholders for delivering the new tax laws, saying the reforms reflected a firm and collective commitment to sustainable economic development.
He urged tax professionals to support implementation of the reforms by promoting transparency, accountability and compliance across the system.
He said,
“As Nigeria shifts from a long-standing dependence on oil toward a more sustainable fiscal model, taxation has rightly emerged as a central pillar of our national revenue strategy.
“CITN has convened this 28th ATC under the theme to provide a critical platform for tax professionals, policy makers, administrators, members of the academia, business leaders and stakeholders-alike to rigorously interrogate the ongoing reforms, evaluate the challenges and identify how best they can strengthen our tax system for long-term sustainability, global competitiveness and enduring fiscal relevance.”
Ohagwa said,
“As tax professionals, our contributions have never been more crucial than now, particularly with reference to Sections Section 33(1) and Section 147 of the Nigeria Tax Administration Act (NTAA) 2025.
“As President of CITN, I call on all members across the public and private sectors to rise to the demands of this moment and support the implementation of the reforms.
“Every CITN member must become a stakeholder of the reform agenda by deepening their technical knowledge, upholding the highest ethical standards and providing sound, objective guidance to taxpayers, institutions, employers and government.”
He said,
“We must firmly reject practices that undermine compliance and instead uphold the principles of transparency, fairness, and accountability in all our engagements. As professionals, we must lead by example by ensuring full compliance with our own tax obligations before encouraging others to do the same.
“CITN stands ready to support the government, including the NRS, State Internal Revenue Services, the JRB, National Tax Policy Implementation Committee, office of the Tax Ombuds and all stakeholders, in achieving the objectives of these reforms.”
