Nigeria’s Tax Reform Agenda Key to Economic Modernisation and Fiscal Stability, Says G24 Director!
Reported by Mustapha Labake Omowumi (Journalist)| Sele Media Africa.
The Director of the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G24), Iyabo Masha, has described Nigeria’s ongoing tax reform efforts as critical to modernising the nation’s economy, strengthening public finances, and accelerating long-term development.
Masha emphasised that comprehensive tax reforms are essential for expanding Nigeria’s revenue base, reducing fiscal vulnerabilities, and creating the financial capacity required to invest in infrastructure, education, healthcare, and social protection. Her remarks come amid broader policy discussions on fiscal sustainability and revenue mobilisation across developing economies.
According to the G24 Director, modern tax systems are not only instruments for revenue collection but also tools for economic transformation. By improving tax administration, broadening the tax net, and enhancing compliance through digitalisation, Nigeria can reduce its dependence on borrowing while ensuring more predictable and sustainable funding for development priorities.
Strengthening Fiscal Resilience
Nigeria has long faced challenges linked to low tax-to-GDP ratios compared to peer economies. Analysts note that limited non-oil revenue generation has constrained the country’s ability to respond effectively to economic shocks, including global commodity price fluctuations and external debt pressures.
Masha stressed that reforms aimed at simplifying tax processes, closing loopholes, and increasing transparency would help strengthen public trust and improve compliance. She also underscored the importance of ensuring that reforms are equitable, protecting small businesses and vulnerable populations while enhancing overall efficiency.
Economic experts argue that a robust tax framework can stimulate private sector growth by creating a more predictable business environment. Clear tax policies and efficient administration reduce uncertainty, encourage investment, and support entrepreneurship particularly critical for Africa’s largest economy.
Aligning with Global Development Goals
As Director of the G24 a coalition of developing countries that coordinates positions on international monetary and development issues Masha’s position reflects broader calls for domestic resource mobilisation across emerging markets.
Institutions such as the International Monetary Fund and the World Bank have consistently highlighted the importance of tax reform in strengthening fiscal sustainability in low- and middle-income countries. In Nigeria’s case, reforms are seen as central to reducing debt vulnerabilities and funding inclusive growth initiatives.
Policy analysts note that Nigeria’s reform agenda includes measures to improve tax administration systems, leverage technology for revenue tracking, and harmonise overlapping tax regulations across federal and subnational levels.
Balancing Reform with Growth
While supporting reform, stakeholders have cautioned that implementation must be carefully managed to avoid overburdening businesses already grappling with inflationary pressures and foreign exchange volatility. Experts recommend phased implementation, stakeholder engagement, and transparency to ensure reforms achieve their intended outcomes without stifling economic activity.
Masha maintained that successful tax reform requires political will, institutional capacity, and sustained public communication. If effectively implemented, she argued, the reforms could mark a turning point in Nigeria’s fiscal trajectory, reducing reliance on oil revenue and external borrowing while positioning the economy for more resilient, diversified growth.
As Africa’s most populous nation seeks to consolidate economic recovery and drive structural transformation, tax modernisation is increasingly viewed as a cornerstone of sustainable development strategy.
Sources:
Reuters; Bloomberg; International Monetary Fund; World Bank
Mustapha Labake Omowumi is a journalist from Ibadan, Oyo State, and a graduate of the Nigeria Certificate in Education (NCE) in Economics and Mathematics. He demonstrates a strong commitment to professional journalism, with a keen interest in writing and storytelling, guided by principles of self-discipline, accuracy, and trustworthiness.
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