Abuja, Nigeria — President Bola Tinubu has stated that Nigeria’s outdated tax laws contributed significantly to poverty and economic hardship in the country, as his administration pushes forward with sweeping tax reforms aimed at restructuring the national revenue system.
The President made the remarks during a recent event in Abuja, where he emphasized that the country’s previous tax framework largely built on colonial-era structures was no longer suitable for a modern economy.
According to Tinubu, the old tax regime was fragmented, overly complex, and inconsistent, creating unnecessary burdens for citizens and businesses.
He argued that these weaknesses discouraged investment, slowed business growth, and made compliance difficult for small and medium-scale enterprises across the country.
The old tax system contributed to making Nigerians poorer due to its inefficiencies and complexity, the President said, adding that reforms were necessary to unlock economic opportunities.
Tinubu explained that Nigeria’s former tax system was made up of multiple overlapping laws and agencies, leading to:
Multiple taxation at federal, state, and local levels
Complicated compliance procedures for businesses
Inefficiencies in revenue collection
Weak coordination among tax institutions
Unclear and outdated legal frameworks
He noted that these challenges created an unfriendly business environment and reduced economic productivity over time.
The President highlighted that his administration has introduced reforms designed to modernize and unify Nigeria’s tax system.
Key objectives of the reforms include:
Consolidating fragmented tax laws into a single framework
Reducing the burden of multiple taxation
Improving transparency and digital tax collection systems
Encouraging investment and business growth
Expanding the national tax base without overburdening citizens
He added that the reforms are expected to make tax administration more efficient and business-friendly.
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