Nigeria Must End Borrowing-Driven Development, Finance Minister Says
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has warned that the country can no longer rely mainly on borrowing to fund development, stressing the need for a sustainable fiscal system.
Speaking at the 28th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria, Oyedele said: “Nigeria cannot continue to finance development primarily through borrowing. We must build a fiscal system capable of sustainably supporting critical infrastructure, education, healthcare, security, and social protection.”
He explained that ongoing tax reforms aim to simplify the system, reduce multiple taxation, improve fairness, and encourage investment. Minimum wage earners have been exempted from personal income tax, while burdens on low- and middle-income earners have been reduced.
On corporate taxation, Oyedele disclosed plans to cut company income tax rates to make Nigeria more attractive to investors.
He also said the government is modernising the VAT framework, expanding input credits, and clarifying exemptions for essential goods to reduce inflationary pressures.
The minister emphasised that technology will play a central role in tax administration, with reforms prioritising data integration, automation, and digital filing systems.
He acknowledged challenges such as weak institutional capacity, informal sector integration, and public trust issues.
Vice-President Kashim Shettima, represented by adviser Tope Fasua, defended the reforms as “pro-people and pro-business,” insisting they are designed to lift millions out of poverty and reposition the economy for sustainable growth.
Tax Institute President Innocent Ohagwa described the reforms as the most comprehensive overhaul in over three decades, noting Nigeria’s revenue-to-debt servicing ratio fell from 120% in 2022 to 68% by 2025. He said broadening the tax base would help Nigeria “transition from a nation that borrows to survive to one that invests to thrive.”
Other speakers, including Minister of Power Joseph Tegbe and Senator Adams Oshiomhole, backed the reforms, stressing that wealthy Nigerians should contribute more, while taxation must be central to governance and development.