Nigeria’s tax reforms targets global Competitiveness — Oyedele

Barbara Bako, Abuja.

The Federal Government has said its ongoing tax reforms are designed to build a globally competitive, equitable and sustainable tax system capable of driving long-term economic growth and national development.

Minister of Financeand Coordinating Minister of the Economy, Taiwo Oyedele, stated this on Tuesday in Abuja while delivering the lead plenary address at the 28th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria.

The conference, themed “Tax Reforms and Global Relevance: Positioning Nigeria’s Tax System for a Sustainable Future,” brought together tax professionals, policymakers and other stakeholders to discuss the future of Nigeria’s fiscal system.

Oyedele said the reforms were beyond technical tax adjustments, describing them as critical to Nigeria’s economic future.

According to him, governments across the world are under growing pressure to modernise tax systems in response to digital economies, changing global supply chains and increasing demand for accountability and transparency.

“In this environment, tax systems can no longer remain static,” he said, warning that countries that fail to reform their fiscal frameworks risk losing competitiveness, discouraging investment and weakening economic resilience.

He explained that Nigeria’s tax reforms became necessary due to longstanding structural weaknesses, including multiple taxation, fragmented administration, weak compliance, informality and rising compliance costs for businesses.

“This model became untenable, and the system was simply unsustainable,” he said.

Oyedele stressed that the reforms were not aimed at increasing taxation for its own sake, but at creating a stronger fiscal foundation for sustainable national development.

He noted that the reforms are guided by principles of efficiency, fairness and inclusiveness, adding that the government seeks to create a tax system that supports economic growth, protects vulnerable citizens and strengthens public trust.

According to him, the new framework is designed to simplify taxation, improve fairness, encourage investment and voluntary compliance, while moving the country from a fragmented system to one anchored on clarity and harmonisation.

The tax reform chairman disclosed that minimum wage earners have been exempted from personal income tax, while many low- and middle-income earners would enjoy lower tax burdens under the new framework.

He added that government was also creating a more competitive corporate tax environment to attract investments, stimulate business expansion and support job creation.

“Our objective is clear: grow the economy, and revenue will follow. Support enterprise, encourage expansion, and decent jobs will be created,” he stated.

On tax administration, Oyedele said government was modernising the Value Added Tax system through expanded input VAT credits, clearer exemptions and zero-rating of essential goods and services.

He added that efforts were ongoing in collaboration with subnational governments to harmonise taxes and reduce the burden of multiple taxation on businesses.

“A fragmented tax system cannot facilitate a globally competitive economy,” he said, while commending the 15 states that have enacted tax harmonisation laws.

Oyedele also reaffirmed government’s commitment to taxpayer protection and transparency through the establishment of the Office of the Tax Ombud and improved dispute resolution mechanisms.

Speaking on fiscal sustainability, he stressed that Nigeria could no longer rely heavily on borrowing to finance development.

According to him, the country must build a sustainable fiscal system capable of funding infrastructure, healthcare, education, security and social protection.

He further stated that technology would remain central to the reforms, with government prioritising automation, data integration and digital compliance systems through initiatives such as VAT fiscalisation, the National Single Window and Rev360.

“The goal is simple: reduce human discretion, increase efficiency, improve transparency, and make compliance easier and cheaper,” he said.

Oyedele expressed confidence that Nigeria possesses the talent, market size and entrepreneurial capacity needed to build one of the strongest fiscal systems globally.

“A globally relevant tax system is not one that merely collects revenue. It is one that supports competitiveness, encourages enterprise, protects citizens, attracts investment, and strengthens national development. That is the future we are building,” he stated.