Nigeria’s tax reform will ease business burden, protect low-income earners– Oyedele
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele
Nike Popoola
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has outlined sweeping benefits of the proposed Nigeria Tax Reform Act 2025, describing it as a major policy shift designed to reduce tax burdens, stimulate economic growth and strengthen fiscal sustainability.
Oyedele spoke on Friday during a workshop for journalists focused on Nigeria’s ongoing tax reforms and their implications for businesses, households and government finances.
According to him, the reform will significantly reduce business risks by lowering tax rates, harmonising multiple taxes and easing compliance. He noted that businesses will benefit from a reduced withholding tax (WHT) regime, faster tax refunds and a more predictable tax environment that supports investment and growth.
“For businesses, the focus is on reducing uncertainty, lowering the tax burden and creating a system that encourages productivity rather than punishes it,” Oyedele said.
He explained that households will also experience direct economic relief under the reform. These include wage awards, transport subsidies, tax waivers on food imports and temporary tax suspension on fuel-related products to cushion the impact of rising living costs.
On personal taxation, Oyedele disclosed that low-income earners will be exempted from income tax, while the middle class will enjoy reduced tax rates. In addition, value-added tax (VAT) will be zero-rated or exempted on selected essential goods and services to protect vulnerable Nigerians.
For government finances, the committee chairman said the reform is expected to drive economic growth and stability, improve Nigeria’s credit rating, reduce fiscal deficits and lower the cost of public debt. He added that stronger revenue mobilisation will be achieved through an improved tax-to-GDP ratio, enhanced non-oil revenue performance and better efficiency in tax collection.
“The goal is not just to raise revenue, but to optimise it in a way that supports fiscal sustainability and a healthy fiscal balance,” he said, adding that the reform will also address distortions and ensure harmonisation of revenue streams across the economy.
Oyedele explained that the tax overhaul became necessary due to longstanding challenges such as complex and overlapping taxes, an unconducive tax environment for growth, excessive burden on businesses and the practice of taxing poverty, capital and investments through archaic and ambiguous laws.
According to him, the core priorities of the reform include fairness, ease of doing business, economic stability and sustainable growth.
Providing an update on progress, Oyedele said the reforms are already contributing to improved macroeconomic stability, enhanced growth prospects and rising investor confidence. However, he noted that several aspects remain work in progress, including sustaining reform momentum, balancing policy trade-offs, accelerating micro-level outcomes, managing high inflation and interest rates, navigating political economy dynamics and addressing infrastructural constraints.
He reaffirmed the committee’s commitment to ensuring that the tax reform delivers tangible benefits to Nigerians while positioning the economy for long-term resilience.
