The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has reaffirmed that the Federal Government’s ongoing tax reforms are designed to put Nigerians at the centre of fiscal policy while unlocking new opportunities for businesses and the national economy.
Oyedele made this remarks yesterday at a one-day workshop organised by the Federal Inland Revenue Service (FIRS), for journalists at Radisson Blu, Ikeja, Lagos soon to transition into the Nigerian Revenue Service (NRS).
Speaking on the broad benefits of the reforms, Oyedele said the new tax framework prioritises workers’ welfare by reducing the overall tax burden, eliminating multiple taxation and ensuring that low- and middle-income earners retain more of their disposable income.
According to him, expanding exemptions on essential goods and services, such as food, healthcare, and education, will shield vulnerable households and drive consumption-led growth.
He noted that Small and Medium Enterprises (SMEs) stand to gain significantly from the reform package, as the streamlined tax structure and simplified compliance processes will lower operational costs and encourage more informal businesses to formalise.
“Minimum wage earners are exempted from personal income tax, amall businesses enjoy broader exemptions and Value Added Tax (VAT) no longer applies to essentials such as basic food, education, healthcare, shared road transport and rent,” he stated.
Oyedele added that improved access to finance, energised capital flows and the removal of bureaucratic bottlenecks would create a more supportive environment for SMEs to scale and contribute meaningfully to employment generation and national growth.
The committee chairman noted that the reforms are targeted at correcting longstanding economic distortions that placed disproportionate pressure on smaller businesses and lower-income groups.
“Small businesses are the backbone of our economy, yet many remain outside the tax net. The reforms encourage them to formalise by granting them a zero percent corporate income tax rate for qualifying small firms, exempting them from VAT and Withholding Tax (WHT) obligations and ensuring Pay As You Earn (PAYE) tax exemptions for their typically low-income employees, Oyedele further explained.
By advancing progressivity within the tax system, he said, the government aims to ensure a fairer distribution of tax responsibilities while promoting economic inclusion.
Oyedele also highlighted the government’s determination to combat tax evasion and avoidance by deploying stronger compliance frameworks, enhanced digital systems and more transparent administrative processes.
He described the transition to a harmonised tax system with fewer, clearer, and better-defined taxes as a major step toward building trust between taxpayers and authorities and improving overall governance.
He emphasised that improved tax administration and the establishment of a unified revenue service would help reduce duplication, minimise compliance costs for businesses and improve revenue collection without imposing new burdens on the populace.
Oyedele said the new reforms would strengthen the broader economy by creating a more predictable fiscal environment, attracting investment, driving business expansion and enabling government to mobilise resources more efficiently for national development.
