The Chartered Institute of Directors (CIoD) Nigeria has called on the Federal Government to demonstrate clear connections between collected taxes and improved public infrastructure as the country prepares for its new tax regime starting January 1, 2026.
Direct Link Between Taxes and Development
During a recent tax symposium organized by the institute's Professional Service Group, CIoD leadership emphasized that every naira collected in taxes must be visibly tied to enhanced security, better roads, quality healthcare, and improved education systems.
President and Chairman of the Governing Council, Adetunji Oyebanji, stated that optimizing Nigeria's tax reform represents a collective national project that presents a clear opportunity to diversify revenue sources, achieve fiscal sovereignty, and create a truly competitive business environment.
Progressive Reform Approach
According to Oyebanji, the reforms are deliberately progressive, designed to tax the "fruits, not the seeds" - protecting the most vulnerable citizens while ensuring everyone benefiting from the Nigerian economy contributes their fair share.
The CIoD boss called for pragmatic, measurable, and implementable solutions that could quickly translate policy into tangible economic benefits for Nigerian citizens. He stressed that the ongoing tax reforms, aimed at streamlining levies, simplifying compliance, and leveraging technology, must move beyond legislative intent to achieve verifiable implementation and positive economic impact.
Addressing Systemic Challenges
Oyebanji highlighted the increasing urgency for a simplified and effective tax system amid concerns about low revenue collection, cumbersome tax structures, and economic bottlenecks. He noted that Nigeria's tax system has long been characterized by complexity, leakage, and over-reliance on a narrow tax base.
The institute expressed commitment to shifting the economy's foundational pillars from dependence on volatile commodity prices to reliance on broad, predictable, and fair non-oil revenue sources.
To achieve this transformation, the CIoD chief identified the need to address multi-layered challenges in technological infrastructure and data utilization. He emphasized that the promise of reform must be matched with an ironclad commitment to transparency and accountability.
Essential components for governance overhaul include consolidating multiple tax laws into a more cohesive framework, establishing clear jurisdictional boundaries between federal, state, and local governments, and introducing a robust tax ombudsman mechanism.
Historical Context and Future Prospects
In her keynote address, Professor Olateju Somorin, Dean of the College of Art, Social and Management Sciences at Caleb University, traced Nigeria's tax reform history back to 1957, when the first reforms focused primarily on fiscal issues and jurisdictions.
Comparing the current Taiwo Oyedele-led Presidential Committee on Fiscal Policy and Tax Reforms with previous efforts, she noted that the current initiative has a dual mandate comprising both tax and fiscal reforms, unlike past approaches that concentrated only on expenditure without balancing policies.
Professor Somorin expressed confidence that the current reforms would unify revenue collection, spur growth, attract investment, and make taxation more equitable and fair for all Nigerians.
As Nigeria approaches the implementation of its new tax system in 2026, the academic called on all critical stakeholders to join the transformation and help build a tax system that works effectively for everyone in the nation.
