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Nigeria fiscal and tax reform initiatives

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2026-10-15 15:06 UTC → 2026-10-15 15:50 UTC · added ~~removed~~

Nigeria has initiated efforts to reform its fiscal and tax systems. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, inaugurated a Technical Subcommittee on Fiscal Policy and Tax Reforms to review the implementation of recent legislation, including the Nigeria Tax Act 2025, the Nigeria Tax Administration Act 2025, and the Nigeria Revenue Service Establishment Act 2025. The subcommittee is tasked with addressing complexities such as fragmented agencies and multiple taxes to reduce burdens on small businesses and low-income citizens. Tax Ombud Dr. John Nwabueze has emphasized that revenue growth must be supported by taxpayer confidence, noting that Nigeria’s tax-to-GDP ratio was 8.2 percent in 2023. Expanding on these economic restructuring efforts, Finance Minister Oyedele and Central Bank Governor Olayemi Cardoso presented an initiative at the IMF-World Bank Annual Meetings in Bangkok to seek $78.5 billion in private capital for 65 key projects in sectors such as energy, manufacturing, and transportation. ~~These projects, including~~ The energy sector represents the largest portion of this pipeline, comprising 25 projects. Key individual initiatives include the $1.7 billion Project Reliaxx ~~and~~ for crude oil infrastructure, the $1.29 billion Lagos Greenline Railway, and a $2.69 billion fertilizer plant. These projects are estimated to create ~~over 366,000 jobs.~~ approximately 366,763 jobs and support economic growth targets for 2027 or 2028. To support this growth, the government is planning an Economic Development Incentive (EDI) tax-credit scheme as an alternative to traditional tax holidays. Amidst these developments, the IMF has advised Nigeria to prioritize targeted financial assistance for vulnerable households instead of reinstating blanket petrol subsidies. This follows projections that federal interest payments could absorb approximately 53.7% of Nigeria's federal revenue in 2026. Recent data from the National Bureau of Statistics indicates that Nigeria's headline inflation rate slowed to 14.63% in September 2026, down from 15.39% in August.

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