By Abiodun Folarin
WorldStage– The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, on Tuesday declared that the Federal Government’s ongoing tax reforms are aimed at building a tax system that is globally relevant, economically competitive, socially equitable, and fiscally sustainable.
Oyedele disclosed this in Abuja while delivering the lead plenary address at the 28th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN), themed: “Tax Reforms and Global Relevance: Positioning Nigeria’s Tax System for a Sustainable Future.”
Addressing tax professionals, policymakers, and stakeholders at the conference, the minister described the conversation around tax reforms as one that goes beyond technical discussions, stressing that it is “strategic to Nigeria’s future.”
He commended CITN for sustaining professionalism and shaping fiscal policy discourse over the years, noting that countries across the world are now under increasing pressure to modernise their tax systems due to digital economies, changing supply chains, and growing demand for accountability and transparency.
“In this environment, tax systems can no longer remain static,” Oyedele stated, warning that countries that fail to modernise their fiscal frameworks risk losing competitiveness, discouraging investment, and weakening economic resilience.
The minister emphasised that Nigeria’s reforms became imperative because of longstanding structural weaknesses within the nation’s tax administration system, stressing that multiple taxation, fragmented administration, weak compliance, informality, and rising compliance costs for businesses necessitated the reforms.
“This model became untenable, and the system was simply unsustainable,” he said, adding that the reforms are “not about taxation for its own sake” but about building “a stronger fiscal foundation for long-term national development.”
According to him, the reforms are guided by the principle that “a good tax system should raise revenue efficiently, support economic growth, protect the vulnerable, and strengthen trust between government and citizens.”
He explained that the new framework is designed to simplify taxation, improve fairness, encourage investment and voluntary compliance, while moving Nigeria “from a framework driven by discretion and fragmentation to one anchored on clarity, certainty, and harmonisation.”
Oyedele stated that minimum wage earners have been exempted from personal income tax under the reforms, while many low- and middle-income earners now face reduced tax burdens in order to strengthen inclusion and reduce inequality.
He further stated that the government is creating a more competitive corporate tax environment to attract investment, stimulate enterprise growth, 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 maintained.
Speaking on tax administration, the minister said the government is modernising the VAT system through expanded input VAT credits, clearer exemptions, and zero-rating for essential goods and services, while also working 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,” the minister noted, while commending the 15 states that have already enacted tax harmonisation laws.
He also reaffirmed the government’s commitment to taxpayer protection and transparency through the establishment of the Office of the Tax Ombud and improved dispute resolution mechanisms aimed at strengthening accountability and public trust.
Speaking on sustainability, Oyedele stressed that Nigeria cannot continue to finance development primarily through borrowing, insisting that the country must build a fiscal system capable of sustainably supporting infrastructure, education, healthcare, security, and social protection.
The minister added that technology would remain central to the reform process, with the 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 stressed that Nigeria possesses the talent, market scale, and entrepreneurial energy required 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.
