THE Minister of State for Finance, Taiwo Oyedele, has disclosed that a new finance bill is being prepared to correct identified gaps in Nigeria’s tax laws as part of efforts to strengthen the country’s evolving fiscal framework.
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Oyedele gave the assurance while speaking at the 2026 Nigerian Bar Association Section on Legal Practice Annual Conference, where he reiterated that enforcement of the new tax regime would be guided by transparency, fairness, and clear policy intent rather than arbitrariness.
He stressed that effective tax administration requires a proper understanding of the purpose behind legislation, noting that previous policies created distortions that discouraged business formalisation.
According to him, disparities in the old regime saw individuals paying about 19 percent in taxes, while companies faced burdens exceeding 40 percent, a situation he described as inconsistent with global best practices.
The minister explained that the ongoing reforms aim to address these imbalances by incentivising formalisation, reducing administrative discretion, and ensuring policy consistency.
He warned that past abrupt policy shifts, including proposals to significantly increase taxes on gas companies, had weakened investor confidence.
“If policies can change overnight, it sends the wrong signal to investors. Consistency is critical,” he said.
On inclusivity, Oyedele noted that the reforms are designed to protect low-income earners and small businesses. He revealed that individuals earning about N1 million annually, as well as millions of small enterprises, are shielded due to their limited capacity to pay taxes.
He added that essential goods and services, including food, education, and healthcare, have been exempted from Value Added Tax, while the practice of imposing minimum tax on loss-making businesses has been eliminated.
Oyedele further stated that existing tax laws have been consolidated into four key legislations, including the Nigeria Tax Act and the Nigeria Tax Administration Act, to simplify compliance and improve coordination.
He attributed the identified inconsistencies to manual drafting processes and multiple review stages, noting that the proposed finance bill would address these issues.
The minister urged legal practitioners to play a more active role in implementation, stressing that improved tax collection would enhance funding for infrastructure, education, and healthcare, while supporting broader economic growth.
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