President Bola Tinubu has declared that his administration’s bold tax reform agenda is already yielding measurable results, describing it as one of the most impactful achievements of his two years in office. In a statement marking the second anniversary of his administration on Thursday, Tinubu highlighted a significant rise in Nigeria’s tax-to-GDP ratio—from 10% to over 13.5% by the end of 2024—as a testament to the success of recent tax policy reforms.
“This progress stems from deliberate improvements in tax administration and the implementation of policies designed to make the system fairer, more efficient, and growth-oriented,” he said.
According to the President, reforms have focused on eliminating the burden of multiple taxation, particularly for small businesses, to encourage their formalization and expansion.
“We’re easing the tax load on low-income households while increasing their disposable income,” Tinubu said. “Essential goods and services—such as food, education, and healthcare—are now subject to zero percent VAT. In addition, rent, public transportation, and renewable energy have been fully exempted to further reduce living costs.”
He stressed that his administration had ended the practice of indiscriminate and opaque tax waivers, replacing them with transparent, targeted incentives that support key sectors like manufacturing, technology, and agriculture.
“These reforms are not solely about increasing government revenue,” Tinubu noted. “They’re also about stimulating inclusive economic growth and creating opportunities—especially for the youth.”
He cited the government’s efforts to create a more accommodating tax environment for digital jobs and remote work as part of a broader strategy to empower Nigeria’s growing youth population.
Tinubu also pointed to trade facilitation improvements, such as the National Single Window project, which has streamlined cross-border trade processes, cut delays, and improved Nigeria’s global competitiveness.
In a further move to ensure transparency and accountability in the tax system, the President announced plans to establish a Tax Ombudsman—an independent institution tasked with protecting the rights of vulnerable taxpayers and ensuring fairness, particularly for small businesses.
He concluded by outlining a broader fiscal strategy aimed at guiding the country toward long-term stability.
“We are laying the foundation for a more sustainable future through a new national fiscal policy framework,” Tinubu said. “It will ensure fair taxation, responsible borrowing, and disciplined public spending.”
“These reforms are intended to lower the cost of living, advance economic justice, and foster a business-friendly environment that attracts investment and supports all Nigerians. We are building a system where prosperity is shared, and no one is left behind.”
