Nigeria’s sweeping tax reform programme will ultimately be judged not by how much revenue it generates, but by how fairly it distributes opportunities across society, the Federal Government has said.
This was disclosed by the Minister of State for Finance and Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, at the launch of the Purple Book, a policy guide aimed at advancing gender equity and social inclusion in Nigeria on Tuesday in Abuja.
The publication consolidates key insights and recommendations from the 2025 Gender and Inclusion Summit and outlines practical pathways for strengthening gender-responsive governance and expanding opportunities for women, youth, and marginalised groups.
The launch organised by the Policy Innovation Centre brought together policymakers, development partners, private sector leaders, and civil society representatives. Attendees engaged in high-level discussions on the 2026 tax reforms, addressing how the ongoing tax reforms can expand economic opportunities for women, youth, and persons with disabilities.
Speaking on behalf of the Minister of State, a member of the committee, Albert Folorunsho, said the ongoing reforms are designed to promote equity, inclusion, and economic participation, particularly among women, youth, and informal sector operators.
Folorunsho, who delivered the keynote address, described the reforms as one of the most ambitious fiscal overhauls in Nigeria’s modern history.
“It is a privilege to speak at the launch of the Purple Book, an important contribution to Nigeria’s ongoing conversation about building a fairer, more inclusive, and more effective tax system. Nigeria is currently undertaking one of the most significant fiscal reform programmes in its modern history.
“These reforms represent far more than legislative changes. They represent a structural shift in how Nigeria mobilises revenue, promotes economic inclusion, and strengthens the social contract between government and citizens.”
According to him, the reform agenda has already produced four landmark legislations aimed at modernising the country’s tax system. These include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Act, and the Joint Revenue Board Act.
Folorunsho stressed that the objective goes beyond revenue mobilisation. “Historically, Nigeria has had one of the lowest tax-to-GDP ratios globally. While progress has been made—with the ratio rising to approximately 12.5 per cent after the GDP rebasing—the reality remains that sustainable development requires a stronger, fairer, and more efficient fiscal system.
“But reform is not only about revenue. It is about equity. It is about opportunity. And it is about ensuring that the tax system supports, not stifles, economic participation. This is particularly important when we consider the structure of Nigeria’s labour market,” he said.
Citing data from the National Bureau of Statistics, he noted that over 92 per cent of Nigeria’s workforce operates in the informal sector, a reality that presents both risks and opportunities for tax reform.
“This reality presents both a challenge and an opportunity,” he said. “A challenge because complex and fragmented tax systems can unintentionally place disproportionate burdens on small traders, artisans, market women, and youth entrepreneurs.
“But also an opportunity, because a well-designed tax system can unlock growth, encourage formalisation, and expand economic participation.”
Folorunsho explained that a key pillar of the reform is the elimination of multiple and overlapping taxes that have historically burdened small businesses.
“For many Nigerians in the informal economy, taxation has too often meant multiple collectors, unclear obligations, and unpredictable enforcement,” he said. “The reforms aim to change that by ensuring businesses face fewer taxes, clearer rules, and simpler compliance processes.”
He added that improved coordination across federal, state, and local governments would help eliminate inefficiencies and reduce harassment of small business owners.
The reforms also seek to reduce the burden of taxation on low-income earners through targeted exemptions.
“Through VAT exemptions and zero-rating of essential goods, the reforms aim to protect the purchasing power of lower-income households,” he said. “This ensures that the tax system does not disproportionately affect those with the least ability to pay.”
At the same time, he said measures such as improved access to input VAT credits would support businesses by enhancing cash flow and enabling reinvestment. Folorunsho noted that the reforms also address gaps in the taxation of digital businesses, providing clearer policies for startups and innovators.
“For youth entrepreneurs and digital innovators, clearer policies around digital taxation will reduce regulatory uncertainty and support Nigeria’s growing innovation economy,” he said.
Folorunsho, who is also President of the Business Recovery and Insolvency Practitioners Association of Nigeria, warned that the success of the reforms would depend largely on implementation.
“Policy design alone is not enough. The real impact will depend on enforcement fairness, digital accessibility, disability inclusion, and taxpayer education,” he said.
He added that stakeholders must continue to interrogate key questions around inclusivity. “Are women-led enterprises able to access the benefits of these reforms? Are youth entrepreneurs positioned to take advantage of digital incentives? Are informal workers being supported to transition into the formal economy?” he asked.
Nigeria has historically recorded one of the lowest tax-to-GDP ratios globally, limiting government revenue and constraining public investment. Although the ratio has improved to about 12.5 per cent following GDP rebasing, experts say it remains insufficient to support the country’s development needs.
Successive governments have therefore pursued reforms aimed at widening the tax base, improving compliance, and enhancing efficiency. The current reform programme, spearheaded by the Presidential Fiscal Policy and Tax Reform Committee, represents a comprehensive attempt to overhaul the system while addressing longstanding concerns about fairness and inclusivity.
Folorunsho concluded that tax reform must be seen as a broader nation-building effort. “Tax reform is often viewed as a technical exercise. But, at its core, it is about nation-building. When a tax system is transparent, equitable, and efficient, it enables the government to invest in infrastructure, education, healthcare, and security. It strengthens foundations for long-term prosperity. And it deepens the relationship between citizens and the state.
“Ultimately, tax reform is not only about raising revenue; it is about building a system that expands opportunity. If implemented inclusively, these reforms can transform Nigeria’s tax system into a platform for economic participation—particularly for women, young entrepreneurs, and the millions operating in the informal economy.
“The Purple Book reminds us that tax reform is not simply about revenue—it is about fairness, opportunity, and national development, and it must unlock potential. When a tax system works for women, youth, and informal workers, it works for the entire economy, and it becomes a cornerstone of Nigeria’s broader economic reform agenda.
“The Purple Book, therefore, arrives at an important moment in Nigeria’s reform journey. It challenges us not only to ask how we raise revenue, but how we design a tax system that expands opportunity and supports inclusive growth. Because ultimately, tax reform is not only about how much we collect, it is about how many people we empower,” he stated.
Also speaking, the Executive Director of the Policy Innovation Centre, Osasuyi Dirisu, said the publication reflects a collective effort to translate dialogue on inclusion into actionable policy and programme recommendations.
“The conversations we had today in the room are why the Gender and Inclusion Summit exists. After the summit, we don’t allow the conversations to end there. Our real burden is to ensure that we can translate every insight from the summit into real solutions,” she said.
In her remarks, Board Member of the Policy Innovation Centre, Maryam Uwais, emphasised the need for a more inclusive and equitable tax system. “A modern tax system must go beyond revenue generation to ensure fairness, support enterprise, and expand opportunity for all Nigerians, especially women, youth, and those in the informal sector,” she said.
The launch also received goodwill messages from partners, including Luminate, Pathfinder International, Nigeria Revenue Service, and the Federal Ministry of Women Affairs, who reaffirmed their commitment to advancing gender equity and inclusive development through collaborative action.
Stakeholders noted that the Purple Book is expected to inform ongoing policy discussions and strengthen efforts to integrate gender and social inclusion into national development priorities, as preparations begin for the next edition of the Gender and Inclusion Summit in 2026, themed “Making Innovation Count for the Last Mile”.
