Tax reforms, digital systems to lift Nigeria’s tax-to-GDP to 18% – Edun

From Adanna Nnamani, Abuja

Finance Minister and Coordinating Minister of the Economy Mr Wale Edun has said that current tax reforms and digitalisation efforts will boost the country’s tax-to-GDP ratio to 18 per cent in the medium term.

Edun stated this on Thursday at the 2026 G-24 Technical Group Meeting in Abuja, explaining that the nation is improving its tax system and moving away from heavy borrowing to a growth model driven by domestic reforms and private investment.

He said the government is modernising tax laws, broadening the tax base, and improving compliance through technology-driven systems, including the National Single Window initiative, RevOp, and a Central Billing System.

These measures, he added, will eliminate inefficiencies, reduce leakages, and curb direct deductions by portals and PSSPs.

Edun emphasised that these reforms align closely with the G-24’s priorities on tax cooperation, transparency, base erosion, and combating illicit financial flows, adding that by combining broad-based tax reforms with digital systems, the country aims to create a fair, efficient, and growth-supporting revenue system that encourages private investment and sustainable development.

The minister further called for enhanced South-South cooperation, including the expansion of trade and investment corridors, stronger regional integration under the African Continental Free Trade Area (AfCFTA), and knowledge sharing in technology, industrial parks, and digital innovation. He noted that these strategies could help the Global South capture a larger share of global trade, stabilise supply chains, and create jobs for the growing youth population.

He also stressed the need to reform the global financial system so countries that have lost market access can get funding, while promoting reliable climate financing, new financial tools, and digital cooperation to improve governance and financial inclusion in developing economies.

According to him, “Nigeria is deliberately shifting away from a model overly reliant on expensive external borrowing toward a more resilient growth framework powered by domestic reforms, private capital, and diversified financing instruments.

“This approach aligns with evolving global development finance priorities that emphasise innovative financing, blended instruments, and expanded concessional windows.

“Nigeria aims for average medium-term growth of 7%, which will require raising the investment-to-GDP ratio to at least 30%. With the current public sector’s financing capacity at roughly 5% of GDP, the strategy emphasises:

“Attracting private capital through structured PPPs; optimising public assets, and creating bankable, de-risked investment opportunities.

“Strengthening Domestic Resource Mobilisation: To ensure sustainable financing for development, Nigeria is advancing a comprehensive domestic revenue mobilisation strategy built on reforms that prioritise efficiency, transparency, and technology.

“Through broad-based tax reforms, implementation of a modernised tax law, and improvements in compliance and automation, including the National Single Window initiative, Nigeria plans to raise its tax-to-GDP ratio to 18 percent in the medium term.

“Key revenue mobilisation reforms underway include deploying RevOp, Federal Treasury receipts, implementing a Central Billing System, and ending direct deductions by portals/PSSPs. These efforts align strongly with G-24 priorities on tax cooperation, transparency, base erosion, and combating illicit financial flows.

“Together, these reforms are designed to build a fair, efficient, and growth-supporting revenue system that strengthens Nigeria’s fiscal resilience.

“Through South-South cooperation, regional integration, and technology exchange, the Global South can create jobs, strengthen trade, and build resilient economies for the future.”