The federal government has said Nigeria has the potential to build one of the strongest fiscal systems in the world if ongoing tax reforms are fully implemented and sustained.
This position was presented at the 28th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN), where government officials and tax experts stressed the need for a modern, transparent and investment-friendly tax system capable of supporting long-term economic growth and national development.
Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, said the reforms were designed to build a stronger fiscal foundation for Nigeria after years of structural weaknesses in the country’s tax administration.
According to him, government revenue had remained too low compared to the country’s growing development needs, making the old fiscal model unsustainable.
Oyedele said changing global economic realities have made tax reforms unavoidable, noting that economies are becoming increasingly digital, capital is moving more freely across borders and global supply chains are evolving rapidly.
He said governments around the world are also under pressure to finance development sustainably while citizens continue to demand fairness, accountability, transparency and better public services.
The Minister warned that countries that fail to modernise their tax systems risk losing competitiveness, discouraging investments, widening inequality and weakening economic resilience.
According to him, Nigeria’s reforms are guided by the belief that a good tax system must efficiently raise revenue, support economic growth, protect vulnerable citizens and strengthen trust between government and the people.
“The reforms seek to simplify the tax system, improve fairness, reduce distortion, encourage investment, promote voluntary compliance and align taxation with productivity,” Oyedele said.
He explained that the reforms are moving Nigeria away from a fragmented and uncertain tax structure towards a system built on clarity, certainty and harmonisation.
He added that the reforms were developed using international best practices while still taking into account Nigeria’s local economic realities.
Oyedele also described the reforms as growth-oriented, investment-friendly and capable of helping to moderate inflation.
He said the federal government is working with state governments to harmonise taxes and reduce the burden of multiple taxation on businesses and individuals.
According to him, the digital aspect of the reforms is intended to reduce human discretion, improve efficiency, increase transparency and make tax compliance easier and cheaper for taxpayers.
He disclosed that the new tax laws introduced tax agent accreditation as part of efforts to reward ethical professionals and sanction violators within the system.
Oyedele urged the CITN to continue strengthening professional standards and taxpayer education, noting that misinformation remains one of the major challenges facing public acceptance of the reforms.
He maintained that tax reform is a gradual process rather than a one-time exercise and identified challenges such as government coordination, integration of the informal sector, institutional capacity and public trust as issues that still need attention.
Despite the challenges, Oyedele expressed confidence that Nigeria has the talent, market size and economic potential to build a globally competitive fiscal system capable of supporting sustainable development.
Also speaking at the conference, Special Adviser to the President on Economic Matters, Dr. Tope Fasua, admitted that the reform process would not be easy and said complaints about multiple taxation and excessive levies may continue for some time.
He pointed to the numerous checkpoints and levies affecting the movement of goods from Kano to Lagos ports as examples of the challenges businesses still face.