Since his inauguration on May 29, 2023, as Nigeria’s 16th civilian leader, President Bola Tinubu appears widely recognized for making very bold and decisive decisions, drawing international commendations from institutions such as the
International Monetary Fund (IMF), the World Bank, and the United Nations (UN), for stabilizing the economy and expanding fiscal space amid initial hardships for Nigerians.
These organizations have also expressed support for the government’s efforts.
The Minister of Information and National Orientation Mohammed Idris, agreed in May 2025, that many of the brave reforms by the Tinubu administration initially triggered hardship, corroborating the belief of some of Tinubu’s critics that the revamped actions have thrown Nigeria into its worst cost-of-living crisis in nearly 30 years.
But, Minister Idris, again insists that several of the economic interventions have started to yield measurable outcomes, positively impacting the lives of millions of Nigerians.
President Tinubu’s recent signing of four landmark Tax Reform Bills into law represents one of the government’s transformative and yet contentious initiatives. The next milestone initiative is the National Single Window (NSW) project, a federal initiative launched in 2024 to streamline and digitize trade processes, reducing bottlenecks and enhancing transparency in import and export activities.
For experts who followed the process of the passage of the tax bills in the parliament closely, these new laws have great potential to significantly overhaul Nigeria’s tax system and drive economic growth, increase revenue generation, improve the business environment, and enhance effective tax administration.
The new laws are the Nigeria Tax Act (NTA), The Nigeria Tax Administration Act (NTAA), The Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA), collectively referred to as “the Acts”.
As Africa’s largest economy, such broad government policy actions have profound implications for economic growth and the business environment on the continent.
A major objective of the government in introducing landmark tax reforms remains to restructure Nigeria’s tax-to-GDP ratio, a key measure of how much tax the nation collects relative to the economy currently a little above 10 percent, but far below the African average of 16–18 percent.
Under the new tax regime, the Tinubu administration focuses on growing this ratio to 18 percent by 2026 without raising taxes on basic goods or overburdening struggling citizens.
As this decision comes barely a year after the removal of fuel subsidies, it has ended decades-long economic drain, helping to stabilize the nation’s oil and gas sector. The government argues that the move has also resulted in increased local refining capacity and better fuel availability, enabling financial autonomy for local governments, as well as supporting the increase in the minimum wage for workers.
Broadly, President Tinubu’s tax laws, just like the subsidy removal, are considered pro-people.
Pro-people because, the laws deliver the first major, targeted tax cuts in a generation focused specifically on relieving low-income earners, small businesses, and families who have struggled under Nigeria’s previously complex and inequitable tax system.
President Tinubu himself in a statement to mark his second anniversary in office, assured that the new tax reforms will protect low-income households and support workers by expanding their disposable income.
According to Taiwo Oyedele, who chairs the Presidential Fiscal Policy and Tax Reform Committee, through simplifying tax rules and encouraging voluntary compliance, President Tinubu’s government hopes to raise more money for funding infrastructure and public services, such as healthcare and education, and reduce the nation’s over-reliance on borrowing, both locally and foreign.
For economic experts, some hands-off positives of the new tax reforms include the creation of the Nigeria Revenue Service (NRS) as an autonomous body and the establishment of uniform tax collection guidelines across federal, state, and local governments aiming to enhance efficiency and reduce leakages.
Other quick wins are the consolidation of over 50 redundant taxes into a single, clearer code, reducing complexity while facilitating business operations.
The idea of ‘No Value Added Tax (VAT)’ on food, electricity, school fees, and medical services also helps reduce basic living expenses for ordinary Nigerians, while the establishment of a Tax Appeal Tribunal and a Tax Ombudsman office under the new regime, guarantees fair treatment of taxpayers.
Importantly, by redirecting focus away from nuisance taxes that generate minimal revenue but incur high administrative costs and disproportionately impact the poor and small businesses, emphasis as spelt out, will now be placed on high-yield, broad-based taxes that are relatively easier to collect.
The Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji has expressed strong support for the new tax laws scheduled to take effect on January 1, 2026, stating that implementing the laws at the start of the year will enable proper planning, education, and alignment with the government’s fiscal calendar.
“This six-month lead time, beginning from when it was signed into law, facilitates system changes and stakeholder sensitization. It is ‘a dream come true’ enabled by strong political will,” Dr. Adedeji told reporters at the presidential villa recently.
With Nigeria’s vast population and sizable economy, the government’s ongoing tax reforms are increasingly regarded as a benchmark for modernizing tax policies in other African countries.
Globally, Tinubu’s tax reforms are drawing attention and being closely observed as a symbol of Nigeria’s wider economic transformation goals, indicating a move toward fiscal discipline, better governance, and sustainable growth with potential major impacts on citizens’ livelihoods and investor confidence.
Citizens’ willingness to pay taxes and support tax reforms in many societies becomes higher when trust in the state is strong. Nigerians will be more willing to pay taxes when they are sure that their money is being well spent on services they want.
The Federal Government must therefore, successfully implement its plans, using tax revenues to enhance lives and foster public confidence and trust for the future.
For the National Single Window project, there is no doubt about the aim to create a centralized electronic platform where traders can submit and receive all necessary information for trade transactions, integrating multiple government agencies such as the Nigerian Ports Authority, Nigerian Customs Service, Nigerian Civil Aviation Authority, and NAFDAC.
President Tinubu has already directed the steering committee to ensure the platform for its implementation becomes fully operational by the first quarter of 2026.
According to the Chief of Staff to the President Femi Gbajabiamila who presided over the fifth meeting of the NSW committee recently at the Presidential Villa, Abuja, the will undoubtedly boost investment and trade revenues, improve transparency, and strengthen Nigeria’s global business credibility.
Director of the NSW project, Tola Fakolade, in an overview brief, confirmed that the steering committee had made significant progress regarding implementation.
“All second quarter 2025 key project milestones have been successfully achieved. And the customisation of the Single window platform has commenced,” he said.
Considering the ambitious target of the NSW to generate an annual economic benefit of about $2.7 billion from paperless trade, as well as serve as a catalyst for achieving an annual GDP growth rate of up to 7% by revolutionizing trade facilitation, reducing inefficiencies, and saving costs, experts are of the view that the government deserves the support to succeed, while pursuing the full implementation of new tax regime.
