VICE President Kashim Shettima has stated that the Federal Government’s ongoing tax reforms are designed to improve the welfare of Nigerians, particularly small businesses and low-income earners, rather than deepen poverty.
Speaking yesterday in Abuja at an interfaith breaking of fast held at the State House to mark both Ramadan and Lent, Shettima delivered remarks on behalf of President Bola Ahmed Tinubu.
He explained that the reforms seek to remove the multiple levies and charges that have long placed financial pressure on small enterprises and ordinary citizens.
The vice president dismissed claims that the reforms would further impoverish the poor, saying such assertions are inaccurate.
According to him, government officials must actively explain the policies to Nigerians and clarify their intended benefits.
Shettima urged senior members of the administration to act as advocates for the reforms by communicating the government’s policies and objectives to citizens across the country.
He also highlighted progress recorded through broader economic reforms implemented by the administration.
These include improvements in foreign exchange reserves, efforts to unify exchange rates, and the removal of the long-standing fuel subsidy.
Shettima commended President Tinubu for what he described as the courage to confront structural economic challenges that previous governments avoided.
The vice president acknowledged that subsidy removal was not originally mentioned in the president’s inaugural speech in 2023 but said the move became unavoidable because the subsidy system was draining national resources needed for development.
He added that the economy has begun to recover several years after the reforms were introduced.
Nigeria’s 2025 Tax Reform Acts, which came into effect on January 1, 2026, aim to simplify the country’s tax system, eliminate nuisance taxes, and shift a greater portion of the tax burden to high-income earners and large corporations.
The legislation consists of four major bills passed by the National Assembly after months of debate: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
Under the new laws, income tax thresholds have been raised to benefit lower-income earners, while small businesses with limited turnover may qualify for exemptions.
Corporate tax has been set at 25 percent, alongside a 4 percent development levy and a 15 percent minimum tax for large multinational companies. Essential items such as food and healthcare services are also exempt from value-added tax.
As part of the restructuring, the Federal Inland Revenue Service has been renamed the Nigeria Revenue Service, which will serve as the country’s central tax authority.
Earlier this week, President Tinubu appointed tax policy expert Taiwo Oyedele—who played a key role in designing the reforms—as Minister of State for Finance to oversee their implementation.
