The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has warned that Nigeria can no longer sustain its development ambitions through continuous borrowing, stressing the need for a stronger and more self-reliant fiscal system.
He gave the warning on Tuesday while speaking at the 28th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria in Abuja, noting that the country must urgently rethink how it finances infrastructure, education, healthcare, and social welfare.
According to him, Nigeria’s long-standing dependence on loans is no longer sustainable, especially as pressure mounts on public finances amid rising development needs.
“Nigeria cannot continue to finance development primarily through borrowing. We must build a fiscal system capable of sustainably supporting critical infrastructure, quality education, affordable healthcare, security, and social protection,” he said.
Oyedele explained that the ongoing tax reforms by the Federal Government are aimed at addressing deep structural weaknesses in the country’s revenue system, including multiple taxation, poor compliance, and an over-reliance on a narrow tax base.
He noted that these challenges have made the system burdensome for businesses and unfair to many citizens, adding that reform was necessary to restore trust and improve efficiency.
“Businesses faced overlapping debts, unpredictable enforcement, and rising compliance costs. Citizens often perceived the tax system as unfair because the burden was unevenly distributed,” he said.
The minister said the new reforms are designed not only to raise revenue but also to promote economic growth, reduce inequality, and support vulnerable groups. He added that minimum wage earners have now been exempted from personal income tax, while low- and middle-income earners will enjoy reduced tax pressure.
On corporate taxation, Oyedele disclosed that the government is considering lower company income tax rates to attract investment and improve competitiveness.
He also said changes to the Value Added Tax system will allow businesses to claim input credits more efficiently, a move expected to reduce production costs and help ease inflationary pressures.
Oyedele further revealed that efforts are ongoing to harmonise taxes across states, with 15 states already adopting tax harmonisation laws to reduce multiple levies and compliance burdens on businesses.
He stressed that technology will play a key role in modernising tax administration, with greater focus on digital filing systems, data integration, and automated compliance processes.
Speaking at the same event, Vice President Kashim Shettima, represented by his Special Adviser on Economic Affairs, Tope Fasua, defended the reforms, describing them as pro-people and pro-business.
He said the administration is working to build an economy where Nigerians can thrive regardless of background, while also making local industries globally competitive.
However, he acknowledged growing public scepticism about the reforms, saying the government must do more to communicate their benefits clearly to citizens.
Earlier, the President of the Chartered Institute of Taxation of Nigeria, Innocent Ohagwa, described the reforms as the most significant overhaul of Nigeria’s tax system in over 30 years, noting that they are already helping to improve revenue performance and reduce reliance on borrowing.
Other stakeholders at the conference, including Minister of Power Joseph Tegbe and former Edo State Governor Adams Oshiomhole, also backed the reforms, with calls for fairer taxation and stronger civic responsibility.
The conference, themed “Tax Reforms and Global Relevance: Positioning Nigeria’s Tax System for Sustainable Future,” focused on building a more transparent, efficient, and trusted tax system capable of supporting long-term national development.
