President Bola Ahmed Tinubu has attributed widespread economic hardship in Nigeria to outdated tax laws, asserting that ongoing fiscal reforms under his administration are designed to unlock opportunities, stimulate growth, and improve citizens’ standard of living.

Speaking during a policy engagement in Abuja, the president said that Nigeria’s previous tax structure stifled innovation, discouraged investment, and placed disproportionate burdens on low-income earners, thereby contributing to persistent poverty levels.

Tinubu emphasised that the new tax system being introduced aims to simplify compliance, expand the tax base, and ensure fairness across all sectors of the economy.

“For too long, our tax laws have not reflected the realities of a modern economy. They have limited growth and placed unnecessary pressure on ordinary Nigerians. We are now correcting that,” the president said.

He noted that the reform agenda includes harmonisation of multiple taxes, improved digital tax administration, and targeted incentives for small and medium enterprises (SMEs), which he described as the backbone of the Nigerian economy.

According to him, the restructuring will not only enhance revenue generation but also create a more enabling environment for businesses to thrive, thereby generating employment and reducing poverty.

Economic analysts have long argued that Nigeria’s tax-to-GDP ratio remains among the lowest globally, limiting the government’s capacity to fund critical infrastructure and social services. Tinubu maintained that the reforms would address these structural gaps while promoting equity and transparency.

The president also reassured citizens that safeguards are being put in place to protect vulnerable populations from excessive taxation, adding that social investment programmes would be strengthened to cushion any transitional impact.

Stakeholders in the private sector have expressed cautious optimism over the proposed reforms, noting that consistent implementation and stakeholder engagement would be critical to achieving the desired outcomes.

Meanwhile, civil society organisations have called for greater transparency in the utilisation of tax revenues, urging the government to ensure that increased collections translate into tangible public benefits.

Tinubu reiterated his administration’s commitment to building a resilient and inclusive economy, stressing that tax reform remains a central pillar of Nigeria’s long-term development strategy.