Vice President Kashim Shettima has said that Nigeria’s debt service-to-revenue ratio decreased sharply from 120 per cent in December 2022 to 68 per cent in 2025 amid ongoing tax reforms introduced by President Bola Tinubu’s administration.
He spoke on Tuesday in Abuja at the opening of the 28th annual tax conference of the Chartered Institute of Taxation of Nigeria (CITN), with the theme, “Tax Reforms and Global Relevance: Positioning Nigeria’s Tax System for a Sustainable Future” on Tuesday in Abuja.
Shettima said the reforms had become a major tool for strengthening government revenues, improving fiscal sustainability and supporting the administration’s ambition of growing the economy to $1 trillion by 2030.
Represented by Dr. Tope Fasua, special adviser to the President on Economic Affairs, the vice president said, “Many pundits have complained about our high revenue to debt servicing ratio. But the only antidote to this anomaly is to drive revenue for the government, based on well-thought-through and properly-established fiscal laws.
“We are on a solid course, as our current tax reforms are the primary engine for this leap and we have been able to close that chasm by bringing down this ratio from a galling high of 120 per cent in December 2022, to 68 per cent as at the close of 2025.”
The vice president said the reforms, which took effect from January 1, 2026, represented Nigeria’s first comprehensive tax overhaul in more than 35 years and were designed to reposition the economy for long-term growth.
He said the federal government was already streamlining tax administration and broadening the tax base to improve the country’s balance sheet and reduce pressure from debt obligations.
Shettima said, “Every Naira recovered from inefficiency and every kobo brought into the net from previously untapped sectors is a brick in the bridge toward that $1 trillion milestone”, adding that reforms would also help government shift from a “nation that borrows to survive to one that invests to thrive.”
He also stated that the current administration remained determined to “break the shackles of high-interest burdens that stifle our ability to fund education, healthcare, social services and infrastructure”.
Shettima also defended the reforms against criticism, adding that many Nigerians were unaware of their “pro-poor” provisions, stressing that many Nigerians remained unaware that anyone earning N1 million and below will go tax free in the country.
He said, “Some simply cannot believe that small businesses turning over N100 million and below every year are totally tax exempt.”
Also at the event, the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, said the ongoing tax reforms were designed to build a global competitive, equitable and fiscally sustainable economy.
Oyedele who spoke virtually, said the reform was capable of supporting the country’s long-term development aspirations and economic resilience.
According to him, the conference’s theme aligns with government’s commitment to building a tax system that supports investment, promotes fairness, strengthens accountability and enhances sustainable economic growth across sectors nationwide.
The minister said that the global economic transformation had forced countries to modernise fiscal systems, because digital economies, changing supply chains and mobile capital increasingly influence competitiveness and national economic stability.
He said that citizens now demand transparency, accountability, fairness and improved public services, warning that countries failing to modernise tax systems risk weakened resilience, inequality and declining investor confidence.
The minister said that the country could not afford to ignore opportunities presented by global economic changes, stressing that reforms became necessary due to longstanding weaknesses within the Nigeria’s tax administration structure.
He noted multiple taxation, weak compliance, informal economic activities, poor revenue generation and inconsistent enforcement practices as major challenges discouraging businesses and creating widespread perception of unfairness among taxpayers.
He also said that competitiveness depends largely on the strength of a country’s fiscal architecture, Nigeria’s reforms incorporate global best practices while addressing local economic and social realities effectively.
According to him, 15 states had already adopted tax modernisation laws, while other states were expected to implement similar measures aimed at creating a more efficient and investor-friendly fiscal environment.
The 17th President and Chairman of Council of the CITN, Mr Innocent Ohagwa, commended President Bola Tinubu, the National Assembly and stakeholders for supporting comprehensive tax reforms culminating in enactment of four new tax laws.
He said that the reforms demonstrated government’s commitment towards strengthening Nigeria’s tax system for sustainable socio-economic growth and enhanced fiscal administration.
Ohagwa said that the CITN annual conference was Africa’s largest gathering of tax professionals, stressing the institute’s commitment to ethical standards, advocacy and fiscal reforms over four decades.
He said that the theme, “Tax Reforms and Global Relevance: Nigeria’s Tax System for a Sustainable Future” comes at a pivotal time in Nigeria’s fiscal journey.
“As Nigeria shifts from a long-standing dependence on oil toward a more sustainable fiscal model, taxation has rightly emerged as a central pillar of our national revenue strategy. CITN has convened this 28th ATC under the theme to provide a critical platform for tax professionals, policy makers, administrators, members of the academia, business leaders and stakeholders-alike to rigorously interrogate the ongoing reforms, evaluate the challenges and identify how best they can strengthen our tax system for long-term sustainability, global competitiveness and enduring fiscal relevance.
“As tax professionals, our contributions have never been more crucial than now, particularly with reference to Sections Section 33(1) and Section 147 of the Nigeria Tax Administration Act (NTAA) 2025. We must firmly reject practices that undermine compliance and instead uphold the principles of transparency, fairness, and accountability in all our engagements. As professionals, we must lead by example by ensuring full compliance with our own tax obligations before encouraging others to do the same,” Ohagwa said.
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