Oyedele says Nigeria cannot sustain development through borrowing.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said on Tuesday that Nigeria can no longer depend chiefly on borrowing to finance development. He warned that the nation must create a sustainable fiscal framework capable of underpinning essential sectors of the economy.

Oyedele delivered these remarks at the 28th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria, held in Abuja.

The comments came just a day after The PUNCH reported that the federal government had stepped up talks with the World Bank on a new $1.25 billion loan intended to support economic reforms, job creation and competitiveness.

“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.

He added that fiscal sustainability involves not only revenue generation but also promoting growth, reducing inequality, protecting vulnerable groups and encouraging productivity.

According to Oyedele, the ongoing tax reforms aim to make the economy more attractive to investors while enhancing fiscal sustainability.

The minister explained that Nigeria’s tax system has long suffered from structural flaws such as multiple taxation, fragmented administration, weak compliance and an over‑reliance on a narrow revenue base.

“Businesses faced overlapping debts, unpredictable enforcements, and rising compliance costs. Citizens often perceived the tax system as unfair because the burden was unevenly distributed,” he noted.

He said the situation had become untenable because government revenues remain insufficient to meet the country’s development needs. The reforms, he stressed, are intended to build a stronger fiscal foundation for long‑term national development rather than to change the system for its own sake.

“Our approach is guided by a simple principle: a good tax system should raise revenue efficiently, support economic growth, protect the vulnerable, and strengthen trust between governments and citizens,” Oyedele said.

He outlined that the reforms seek to simplify the tax structure, improve fairness, encourage investment and reduce economic distortions. He also disclosed that minimum‑wage earners have been exempted from personal income tax under the reforms, and that the tax burden on low‑ and middle‑income earners has been reduced.

On corporate taxation, he said the government is proposing cuts to companies’ income‑tax rates to boost Nigeria’s appeal as an investment destination.

Oyedele added that the government is modernising the Value‑Added Tax framework by expanding input VAT credits and clarifying exemptions for essential goods and services. “This reduces cost buildup within the economy and improves efficiency across the value chain. This also helps to moderate inflation,” he explained.

The minister lamented the multiple taxes and levies imposed on businesses, noting that the government is working with sub‑national authorities to harmonise taxes and lower compliance costs. He revealed that 15 states have already passed tax‑harmonisation laws and urged the remaining states to follow suit.

Oyedele emphasised that technology will play a central role in the future of tax administration in Nigeria. “We are therefore prioritising data integration, automation, digital filing systems, and a technology‑driven compliance framework,” he said.

He acknowledged that challenges remain, including weak institutional capacity, integration of the informal sector and issues of public trust.

Also speaking at the conference, Vice‑President Kashim Shettima defended the federal government’s tax reforms, describing them as pro‑people and pro‑business policies designed to lift millions of Nigerians out of poverty and position the economy for sustainable growth.

Represented by Dr Tope Fasua, Special Adviser to the President on Economic Affairs, Shettima said the Tinubu administration envisions an economy where ordinary Nigerians can prosper regardless of social background.

He added that the administration is working to make Nigerian‑made products globally competitive while transforming the country’s tax administration into a benchmark for Africa.

The Vice‑President noted that public scepticism and misinformation about the reforms constitute one of the biggest obstacles.

“Many Nigerians simply cannot believe it because it has never happened before,” he said, insisting that President Bola Tinubu is neither anti‑business nor anti‑people, but committed to creating an environment where Nigerians can thrive.

Shettima also stressed the need for aggressive public sensitisation on the reforms. He described tax reform as more than a fiscal exercise, calling it “an act of patriotism” that can lay the foundation for national prosperity.

Earlier, Innocent Ohagwa, President of the Council of the Chartered Institute of Taxation of Nigeria, described the newly introduced tax regime as the most comprehensive overhaul of Nigeria’s fiscal structure in more than three decades.

Ohagwa said the reforms align with the administration’s ambition of growing Nigeria into a $1 trillion economy by the end of the decade. He noted that the country has historically struggled with weak revenue generation and excessive reliance on borrowing, but argued that the current reforms are beginning to reverse that trend.

According to him, Nigeria’s revenue‑to‑debt‑servicing ratio, which stood at 120 percent in December 2022, fell to 68 percent by the end of 2025. Ohagwa said broadening the tax base and simplifying the tax code would help Nigeria move “from a nation that borrows to survive to one that invests to thrive.”

He added that the reforms would also curb illicit financial flows, reduce informality in the economy and strengthen accountability by improving the National Revenue Service’s technological surveillance.

Meanwhile, Minister of Power Joseph Tegbe praised the reforms, stating that the country needs “radical reformers” across all sectors to achieve meaningful development.

Former Edo State Governor and senator Adams Oshiomhole also backed the reforms, arguing that taxation remains central to governance and national development.

Oshiomhole said governments do not create wealth directly but rely on taxes to fund infrastructure, healthcare, education and social safety nets.

He argued that wealthy Nigerians should contribute more to development efforts, noting that individuals earning above N20 million monthly and owners of private jets should face higher tax obligations, as is common in advanced economies. The former governor also urged Nigerians to make taxation a major issue in political debates.

In her welcome address, Caroline Ndubisi, Chairperson of the conference and National Chairperson of the Society of Women in Taxation, described the gathering as a crucial platform for shaping the future of Nigeria’s tax system.

Ndubisi said taxation remains central to Nigeria’s economic transformation and called for tax systems that are fair, transparent and trusted by citizens. She also urged tax professionals to see themselves not merely as interpreters of tax laws but as “advocates of economic stability.”

The conference, themed “Tax Reforms and Global