The Nigerian government, under President Bola Ahmed Tinubu, is moving towards a major overhaul of the nation’s tax system. The new proposal, being discussed by the Presidential Committee on Fiscal and Tax Reforms, aims to introduce a single-digit range tax structure to reduce the burden of multiple taxes on citizens and businesses.
Taiwo Oyedele, the Chairman of the committee, revealed that once the reforms are fully implemented, all taxes will be reduced to single-digit figures, meaning that Nigerians and businesses would face fewer taxes, all less than ten in total, over a set period.
In a recent interview, Oyedele emphasized that the goal of the reforms is to simplify tax collection and improve the efficiency of Nigeria’s tax system, which he described as one of the most backward globally. He highlighted the need for tax authorities to focus on primary mandates while enhancing collaboration between states and federal authorities, particularly through better data sharing, tax intelligence, and capacity building.
The new tax framework would involve significant changes, such as reducing the corporate income tax rate from 30% to 25% over the next two years and eliminating several earmarked taxes in favor of a harmonized, single levy at a reduced rate.
Oyedele assured that the aim is not to increase the tax burden on Nigerians but to reduce it while simultaneously boosting government revenue. He explained that these reforms would tackle disincentives to business formalization, encourage investment, curb tax evasion, and ultimately enhance economic growth. The use of technology and data for better tax administration will also play a critical role in this transformation.
These reforms come in response to public dissatisfaction with the current tax regime, which has been criticized for its complexity and heavy burden on businesses and citizens alike.
