Nigeria’s ongoing tax reform programme will ultimately be evaluated not by the volume of revenue it generates, but by how equitably it expands opportunities across society, the Federal Government has stated.

This position was highlighted by the Minister of State for Finance and Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, during the launch of the Purple Book in Abuja. The policy document is designed to promote gender equity and social inclusion in Nigeria.

The Purple Book compiles key insights and recommendations from the 2025 Gender and Inclusion Summit, outlining practical strategies to strengthen gender-responsive governance and broaden opportunities for women, youth, and marginalised groups.

The event drew policymakers, development partners, private sector stakeholders, and civil society representatives, who engaged in high-level discussions on the 2026 tax reform agenda and its potential to enhance economic inclusion, particularly for women, young people, and persons with disabilities.

Speaking on behalf of the minister, a member of the reform committee, Albert Folorunsho, stated that the reforms are deliberately structured to promote equity, inclusion, and wider economic participation, especially among women, youth, and informal sector operators.

Delivering the keynote address, Folorunsho described the initiative as one of the most far-reaching fiscal reform efforts in Nigeria’s modern history.

He noted that the reforms go beyond legislative adjustments, representing a fundamental shift in how the country mobilises revenue, drives economic inclusion, and strengthens the social contract between government and citizens.

According to him, the reform programme has already resulted in four major pieces of legislation: the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Act, and the Joint Revenue Board Act—all aimed at modernising the tax system.

Folorunsho emphasised that the reform agenda is not solely focused on increasing revenue but on ensuring fairness and expanding opportunity.

Nigeria has historically recorded one of the lowest tax-to-GDP ratios globally. Although this has improved to approximately 12.5 per cent following GDP rebasing, he noted that a more efficient and equitable fiscal system is essential for sustainable development.

He explained that tax reform must support—not hinder—economic participation, particularly given the structure of Nigeria’s labour market. Citing data from the National Bureau of Statistics, he pointed out that over 92 per cent of the workforce operates within the informal sector.

While this presents challenges, such as disproportionate tax burdens on small traders, artisans, and entrepreneurs, it also creates opportunities for growth and formalisation through a well-designed tax system.

A central feature of the reforms, he said, is the elimination of multiple and overlapping taxes that have long burdened small businesses.

The new approach aims to simplify taxation by reducing the number of taxes, clarifying obligations, and streamlining compliance processes. Improved coordination across federal, state, and local governments is also expected to minimise inefficiencies and curb the harassment of small business owners.

In addition, the reforms seek to ease the tax burden on low-income earners through targeted measures, including VAT exemptions and zero-rating on essential goods, thereby protecting household purchasing power.

Businesses are also expected to benefit from improved access to input VAT credits, which will enhance cash flow and encourage reinvestment.

The reform framework further addresses gaps in the taxation of digital businesses, providing clearer guidelines for startups and innovators.

Folorunsho noted that these measures would reduce regulatory uncertainty and support Nigeria’s growing digital and innovation economy, particularly benefiting young entrepreneurs.

However, he cautioned that the success of the reforms will depend heavily on effective implementation.

He stressed that beyond policy design, critical factors such as fair enforcement, digital accessibility, disability inclusion, and taxpayer education will determine the overall impact.

He also urged stakeholders to continuously assess the inclusiveness of the reforms by asking key questions about access and participation for women-led businesses, youth entrepreneurs, and informal workers transitioning into the formal economy.

Nigeria’s historically low tax-to-GDP ratio has constrained government revenue and limited public investment. While improvements have been recorded, experts maintain that current levels remain insufficient to meet the country’s development needs.

Successive administrations have therefore pursued reforms to broaden the tax base, improve compliance, and enhance efficiency. The current initiative, led by the Presidential Fiscal Policy and Tax Reform Committee, represents a comprehensive effort to address these challenges while prioritising fairness and inclusion.

Folorunsho concluded by framing tax reform as a critical nation-building exercise.

He noted that an effective tax system—one that is transparent, equitable, and efficient—enables government investment in infrastructure, education, healthcare, and security, while strengthening trust between citizens and the state.

According to him, the ultimate goal of the reforms is to expand opportunity and empower more Nigerians, particularly women, youth, and those in the informal sector.

Also speaking, the Executive Director of the Policy Innovation Centre, Osasuyi Dirisu, said the Purple Book reflects a commitment to transforming dialogue on inclusion into actionable policies and programmes.

Similarly, Board Member of the Policy Innovation Centre, Maryam Uwais, emphasised that a modern tax system must prioritise fairness, support enterprise, and expand opportunities for all Nigerians.

The event also featured goodwill messages from key partners, including Luminate, Pathfinder International, the Nigeria Revenue Service, and the Federal Ministry of Women Affairs. These organisations reaffirmed their commitment to advancing gender equity and inclusive development through collaboration.

Stakeholders noted that the Purple Book is expected to shape ongoing policy discussions and strengthen efforts to integrate gender and social inclusion into national development priorities, as preparations begin for the 2026 Gender and Inclusion Summit, themed “Making Innovation Count for the Last Mile.”