Prof. Taiwo Oyedele, Chairman of Nigeria’s Presidential Committee on Fiscal Policy and Tax Reforms, has urged young entrepreneurs to adopt proper record-keeping practices to fully benefit from the country’s ongoing tax reform initiatives.
Oyedele made the call in Abuja during the closing ceremony of the seventh phase of the MTN Foundation ICT and Business Skills Training programme, where nearly 6,000 young Nigerians were inducted into a growing network of tech-enabled entrepreneurs.
Nigeria undergoing fiscal transformation
Speaking at the event, Oyedele explained that Nigeria is currently undergoing a significant fiscal and economic transformation designed to simplify the tax system and create a more supportive environment for small businesses.
According to him, the reforms are aimed at reducing the complexity that previously discouraged many entrepreneurs from formalising their businesses.
He noted that for years Nigeria’s tax system was fragmented and difficult to navigate, forcing many small business owners to operate informally.
Entrepreneurs avoided formal registration not because they intended to evade taxes, he said, but because the regulatory process was often confusing and burdensome.
Supporting growth of small businesses
Oyedele stressed that the new tax reforms are designed to support entrepreneurship rather than impose additional financial burdens.
He explained that the reforms aim to protect small businesses and encourage informal enterprises to formalise their operations in a predictable and business-friendly environment.
According to him, small businesses registered with the Corporate Affairs Commission and recording annual turnover below N100 million with assets not exceeding N250 million now qualify for a zero per cent corporate income tax rate.
He added that informal businesses earning less than N12 million annually are fully exempt from company income tax under the new structure.
Businesses with income above that threshold will only be required to pay one per cent of their annual turnover.
VAT exemption for small enterprises
Oyedele further explained that small businesses with yearly turnover of up to N100 million will also be exempt from charging Value Added Tax (VAT) on their goods and services.
According to him, the measure is designed to reduce the compliance burden on micro and small enterprises while promoting fairness in the tax system.
He noted that the reforms are intended to allow small businesses to grow, innovate and operate sustainably without fear of excessive taxation.
Record-keeping essential for compliance
While highlighting the benefits of the new policies, Oyedele emphasised that entrepreneurs must maintain proper financial records to fully take advantage of the reforms.
He explained that accurate documentation of income, expenses and transactions will help businesses determine their eligibility for tax exemptions and simplified tax rates.
He said reliable record-keeping will also make it easier for small businesses to access financing, government programmes and other economic opportunities.
Reforms gaining traction across states
Oyedele also revealed that the tax harmonisation reforms are already gaining traction across the country.
According to him, 13 states have enacted the new tax harmonisation law, while several others are currently in the final stages of approving the legislation.
He said the reforms are expected to improve tax administration, reduce multiple taxation and encourage more businesses to formalise their operations.
The policy expert recently drew national attention following his nomination by President Bola Tinubu to serve as Minister of State for Finance, a move widely seen as part of broader efforts to strengthen Nigeria’s fiscal policy framework.
