Nigeria: Effective Implementation Critical to Unlocking Gains from Tax Reforms – Tegbe

Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee (NTPIC), has emphasised that the real value of Nigeria’s tax reforms will depend not on legislative ambition, but on disciplined and credible execution.

Speaking at the 2026 Leadership Retreat of the Nigeria Revenue Service (NRS), Tegbe stated that tax policy must function as a strategic enabler of governance. He noted that an effective framework should prioritise simplicity, equity, predictability, and scalability—principles that encourage voluntary compliance, minimise operational friction, and enhance investor confidence.

According to him, inconsistent policy shifts or ad-hoc adjustments could stall reform momentum, unsettle businesses, and weaken investment flows. Investors, he warned, respond to stable and predictable regulatory environments rather than evolving or unclear directives.

“Structured sequencing, clear transition mechanisms, and continuous feedback between policymakers and administrators are critical to sustaining reform credibility,” Tegbe said.

Implementation as the Deciding Factor

Tegbe described Nigeria’s tax reform journey as being at a pivotal stage, where institutional performance will ultimately determine long-term fiscal sustainability. He pointed out that Nigeria’s tax-to-GDP ratio remains among the lowest for major economies, limiting fiscal flexibility and increasing exposure to oil price volatility.

With rising public expenditure obligations and growing pressure on macroeconomic stability, he argued that strengthening domestic revenue mobilisation through effective implementation is now essential for fiscal resilience.

While acknowledging the recent passage of four new tax laws, Tegbe stressed that legislation alone does not guarantee results. He characterised the reforms as a systemic recalibration of Nigeria’s fiscal architecture rather than a routine policy update.

“The true measure of success will be the credibility of implementation, not merely the design of the laws,” he noted.

A Whole-of-Government Approach

Tegbe further argued that revenue reform cannot operate in isolation. Achieving sustainable outcomes, he said, requires a coordinated, whole-of-government approach anchored on:

• Robust taxpayer identification systems
• Integrated financial data frameworks
• Efficient dispute resolution mechanisms
• Harmonised coordination across federal and subnational levels

Such integration, he explained, would reduce leakages, eliminate multiple taxation, and strengthen overall confidence in the tax system.

Ultimately, Tegbe stated that durable reform should be evaluated through measurable outcomes—higher voluntary compliance, reduced administrative costs, fewer disputes, faster resolution cycles, and stronger taxpayer trust.

His remarks reinforce a central message for Nigeria’s evolving fiscal landscape: effective implementation, not policy rhetoric, will determine whether tax reforms deliver meaningful and lasting gains.