Nigeria’s tax reform programme is beginning to yield early results, with more than 100 million Nigerians now captured in the tax system, signalling a major shift in compliance and revenue mobilisation.
The disclosure was made by the Minister of State for Finance, Taiwo Oyedele, who said the reforms are already transforming how individuals and businesses engage with the country’s tax framework.
According to him, the number of registered taxpayers has surged from fewer than 10 million before the reforms to over 100 million, reflecting what he described as growing confidence in the new system.
The impact is also being felt within the business space, as thousands of informal enterprises are now seeking formal registration daily with the Corporate Affairs Commission, a trend seen as a significant step toward broadening the tax base.
Oyedele explained that the reforms were designed to reduce the burden on low-income earners and small businesses while encouraging voluntary compliance. Measures introduced include tax exemptions for small companies, higher income thresholds for individuals, and the removal of taxes on essential needs such as food, healthcare, education, transportation, and rent.
He noted that these policy adjustments are helping to reposition the tax system as more inclusive and growth-oriented, particularly for micro, small, and medium enterprises that previously operated outside the formal economy.
The minister also highlighted the introduction of a Tax Ombud system aimed at protecting taxpayers and ensuring fairness, adding that this has contributed to improved trust in the system.
Despite the early gains, Oyedele acknowledged that the reform process is still evolving and may require adjustments over time to address emerging gaps.
He stressed that continuous stakeholder engagement would be critical in refining the laws through periodic updates, particularly via finance legislation.
Addressing recent reports suggesting he admitted errors in the reforms, Oyedele dismissed the claims as misleading, stating that his comments had been taken out of context.
He clarified that while no reform is perfect, ongoing improvements should not be misconstrued as evidence of failure, noting that the legislative process has already been concluded and the laws formally gazetted.
Oyedele urged Nigerians to rely on verified information from official sources to avoid confusion, warning that misinterpretation of policy statements could undermine public understanding of the reforms.
Analysts say the rapid expansion of the tax net and increased business formalisation could significantly boost government revenue in the long term, while also reducing reliance on oil earnings.
