New tax regime will protect lower-income households – Oyedele

The Minister of State for Finance, Prof. Taiwo Oyedele, has stated that the implementation of the new tax laws are protecting the purchasing power of lower-income households and enabling a tax system that does not disproportionately affect those with the least ability to pay. Speaking during the launch of the Purple Book by the Nigeria […]

The Minister of State for Finance, Prof. Taiwo Oyedele, has stated that the implementation of the new tax laws are protecting the purchasing power of lower-income households and enabling a tax system that does not disproportionately affect those with the least ability to pay.

Speaking during the launch of the Purple Book by the Nigeria Economic Summit Group’s Policy and Innovation Centre (PIC), Oyedele said the law is focused on reducing the regressive impact of taxation on vulnerable households through targeted VAT exemptions and zero-rating of essential goods.

“The reforms are introducing measures to support enterprise growth, including simplified tax compliance frameworks and improved access to input VAT credits that can help businesses manage cash flow and reinvest in expansion.

For youth entrepreneurs and digital innovators, clearer policies around digital taxation and improved recognition of digital business models will help reduce regulatory uncertainty and support Nigeria’s rapidly growing innovation economy. However, as the Purple Book rightly reminds us, policy design alone is not enough.”

Represented by a member of Presidential Fiscal Policy and Tax Reforms Committee, Albert Folorunsho, Oyedele added that one key step in the law is the elimination and harmonisation of nuisance taxes and overlapping levies that have historically affected small businesses operating in markets and communities across the country.

“For many Nigerians in the informal economy, taxation has too often meant multiple collectors, unclear obligations, and unpredictable enforcement. The reforms aim to change that. By strengthening coordination across tiers of government and clarifying tax authority, Nigeria is moving toward a system where businesses face fewer taxes, clearer rules, and simpler compliance processes.”

A board member of PIC, Maryam Uwais, said Nigerian women, youth, and informal workers constitute a large share of economic activity yet they often sit at the margins of fiscal policy design.

“Women entrepreneurs frequently operate smaller businesses with limited access to credit and formal support systems. Young Nigerians entering the workforce face structural barriers to stable employment. Informal workers frequently encounter tax and regulatory systems that are not designed with their realities in mind.”

She said when reforms do not intentionally consider these dynamics, the result can have unintended and unfair consequences: consumption taxes that disproportionately affect low-income households, compliance systems that discourage formalization, and policies that increase burdens without expanding opportunities.