New Tax Reforms are yielding positive results – Oyedele

The Presidential Fiscal Policy and Tax Reforms Committee says the tax reforms of the Federal Government of Nigeria are painful but necessary as the reforms are beginning to yield positive results.

The Committee said with the tax reforms, Nigeria is no longer where it used to be as the reforms are set to address exchange rates recovery and stability, sticky inflation and high cost of doing business, rising poverty and declining decent job opportunities, high interest rate environment, insecurity challenges and social discontent and need for more efficient government.

The Tax Reforms Committee Chairman, Mr. Taiwo Oyedele, stated this in a paper on “The Implementation of the New Tax Laws and Impact on the Economy” at the 2025 Mid-Year Review and Outlook Conference of the Lagos Chamber of Commerce and Industry (LCCI) held in Lagos on Wednesday, July 16, 2025.

Oyedele said before the reforms, Nigeria’s fiscal space was constrained and the tax system was unconducive for sustained growth.

According to him, the old tax system was characterised by low tax to GDP ratio (less than 10% pre-2024), high debt service to revenue ratio (97% in 2022), growing budget deficits and deficit monetisation, iver-reliance on oil revenue, inefficient public financial management, multiple taxes and levies, among others.

Positive indicators of the new tax laws are trade surplus and positive balance of payment, slowing global inflation and interest rate cuts, declining budget deficit & more infrastructural spending, improved tax to GDP and debt service to revenue ratios, moderation/pay-down of Ways & Means financing, rising crude oil and gas production, commencement of local crude oil refining, upgrades by rating agencies, capital market performance and improvement in forex inflow esp FPI & remittances

Oyedele said the tax reforming is People-Centric, Growth Focussed, Efficiency Driven and assured that it would facilitate economic growth, revenue mobilisation and shared prosperity.