SUPPORT 2026 TAX REFORM TO BUILD A STRONGER ECONOMY, EX-WORLD BANK ADVISER TELLS NIGERIANS
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BY BALOGUN MUNIRAT
A former adviser to the World Bank has called on Nigerians to fully support the implementation of the forthcoming 2026 tax reforms, describing them as critical to achieving fiscal stability, inclusive growth, and sustainable development.
Speaking on Thursday, the former adviser emphasised that the reforms — which are expected to take effect from January 1, 2026 — present a rare opportunity for Nigeria to modernise its tax system, improve transparency, and reduce dependence on oil revenues.
He noted that the new tax framework, designed under President Bola Tinubu’s administration, aims to consolidate multiple tax laws into a more efficient structure, broaden the tax base, and ensure a fairer distribution of revenue among federal, state, and local governments.
“Tax reform is not just about revenue collection; it is about building a stronger social contract between the government and the people. When citizens perceive the system as fair and transparent, compliance improves, and everyone benefits,” he said.
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The adviser highlighted that Nigeria’s tax-to-GDP ratio remains among the lowest in Africa — hovering around 10 per cent — which limits the government’s ability to fund essential sectors such as infrastructure, education, healthcare, and security.
He added that the 2026 reform package would address key weaknesses in the current system by:
Expanding the tax net to include digital services and virtual transactions.
Streamlining the Value Added Tax (VAT) process to reflect a “consumption-based” model that ensures fairer revenue sharing.
Protecting low-income earners through targeted exemptions and incentives.
According to him, successful implementation will depend on public understanding, cooperation, and trust in the process. He urged the government to intensify public awareness campaigns to educate citizens and small businesses about the reform’s benefits and obligations.
However, he acknowledged potential challenges, including resistance from some states that fear revenue loss under the new distribution formula, as well as administrative capacity constraints within tax agencies.
The adviser cautioned that failure to address these issues could undermine the objectives of the reform, stressing the need for continuous stakeholder engagement and strong institutional frameworks.
“This reform is a once-in-a-generation opportunity. If well executed, it can transform Nigeria’s fiscal landscape and reduce its overreliance on oil revenue. But it will require transparency, communication, and national unity,” he added.
The 2026 tax reform is part of the Federal Government’s broader economic recovery plan aimed at strengthening non-oil revenue generation, curbing fiscal deficits, and promoting shared prosperity across the country.
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