The chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, has revealed that Nigeria’s tax-to-Gross Domestic Product (GDP) ratio remains among the lowest for major economies worldwide, a reality he said constrains fiscal flexibility and leaves the nation overly exposed to oil price volatility.
Tegbe made this known while speaking at the 2026 Leadership Retreat of the Nigeria Revenue Service (NRS), where he delivered a comprehensive address on the state of the nation’s tax reforms and the road ahead.
According to Tegbe, the successful implementation of Nigeria’s recently enacted tax reform framework is critical to driving long-term fiscal resilience. He argued that with public expenditure pressures rising and macroeconomic stability increasingly dependent on sustainable domestic revenue mobilisation, institutional performance has now become the primary driver of fiscal strength.
“The success and execution of the tax reform journey relies on the ambition and discipline of legislative efforts in the country to drive long term fiscal outcomes,” Tegbe stated.
He described the passage of four new tax laws as marking the beginning of a broader reform agenda, characterizing the initiative as a systemic recalibration of Nigeria’s fiscal architecture rather than a routine policy update. The true measure of success, he asserted, will be the credibility of implementation, not the design of the laws themselves.
Central to Tegbe’s address was the principle that tax policy must serve as an enabler of governance. He stressed that the framework must embody simplicity, equity, predictability, and scalability—principles that foster voluntary compliance, reduce operational friction, and strengthen investor confidence.
By contrast, he warned that ad-hoc adjustments or policy drift could undermine reform momentum, unsettle businesses, and deter investment, which thrives on predictable rules rather than shifting announcements. Structured sequencing, clear transition mechanisms, and continuous feedback between policymakers and administrators are therefore critical to sustaining reform credibility.
Tegbe further argued that revenue reform cannot succeed in isolation. Achieving sustainable gains requires a whole-of-government approach that leverages robust taxpayer identification systems, integrated financial data, efficient dispute resolution, and harmonised coordination across federal and subnational levels. This approach, he said, reduces leakages, eliminates multiple taxation, and reinforces confidence in the system.
Importantly, Tegbe expanded the definition of reform success beyond headline revenue figures. Durable reform, he noted, should be measured by higher voluntary compliance rates, lower administrative costs, fewer disputes, faster resolution cycles, and stronger taxpayer confidence.
“Sustainable revenue performance is built on trust and efficiency, not enforcement intensity,” he concluded, emphasizing that the legitimacy and predictability of the system are more critical than punitive measures.
With the legislative framework now firmly established, Tegbe noted that Nigeria’s focus has shifted from policy design to effective delivery. The next phase, he stressed, will be defined by the consistency, coherence, and discipline with which the reforms are implemented.
“The Nigerian Revenue Service functions as the nation’s ‘Revenue System Integrator,’ with outcomes reflecting the strength of an interconnected ecosystem that encompasses policy clarity, consistent enforcement, digital infrastructure, efficient dispute resolution, and intergovernmental coordination,” he explained.
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