…Lists Benefits To Economy, Taxpayers
The Nigerian Economic Summit Group (NESG) has described the tax reform initiative of the current administration and the recent signing of four major bills into law by President Bola Tinubu as a major step forward in Nigeria’s fiscal evolution.
The economic think-tank group in a statement on Tuesday recalled that Nigeria had for long been grappling with persistent fiscal challenges characterized by low tax revenues, a large informal sector, inefficient tax collection systems, and an overdependence on volatile oil income.
It noted that the country’s complex tax system and low tax-to-GDP ratio kept it behind many of its African peers, restricting critical investments in infrastructure, health, and education.
The NESG stated that to address these enduring issues, President Bola Tinubu inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms chaired by Mr. Taiwo Oyedele in July 2023.
The group noted that the committee was tasked with achieving the primary objective of enhancing revenue collection efficiency, ensuring transparent reporting, and promoting the effective utilisation of tax and other revenues to boost citizens’ tax morale, foster a healthy tax culture, and drive voluntary compliance.
On the benefits of the fiscal initiative, the NESG stated: “The 2025 tax reforms mark a major step forward in Nigeria’s fiscal evolution. For individuals, especially low-income earners, the reforms offer relief through exemptions on wages, essential goods, and job-loss compensation.
“For small businesses, reduced tax levies, including income and withholding taxes, are expected to ease compliance burdens and stimulate growth. Larger businesses will benefit from input tax credits, though they must meet stricter compliance requirements.
“Meanwhile, the restructured VAT regime, digitalisation of tax processes, and stronger oversight mechanisms aim to boost efficiency and public trust.
“Ultimately, these reforms promise a more equitable, efficient, and transparent tax system—provided implementation is timely, inclusive, and firmly rooted in transparency and accountability”, it added.
