By | Goodluck E. Adubazi, Abuja
The Federal Government has set an ambitious target of raising Nigeria’s tax-to-GDP ratio to 18 per cent by the end of 2028, as stakeholders at the GS-26 plenary session in Abuja called for an inclusive fiscal architecture that translates increased government revenue into tangible improvements in the lives of citizens.
The discussion, held on Wednesday, September 9, 2026, focused on the theme, “From Tax Reforms to Last-Mile Impact: Building an Inclusive Fiscal Architecture.”
Speaking during the plenary, the Special Adviser on Revenue to the Honourable Minister of Finance and Coordinating Minister of the Economy, Olarinde Michael Olufemi, said Nigeria must move beyond measuring the success of tax reforms merely by the volume of revenue collected.
He said the real test of fiscal reform should be how effectively public revenue is translated into improved healthcare, education, infrastructure, security, social protection and other essential services for Nigerians.
Olufemi noted that Nigeria’s tax-to-GDP ratio remained among the lowest globally and below the African average, stressing the urgent need to strengthen domestic resource mobilisation.
According to him, the government’s target is to raise the country’s tax-to-GDP ratio to 18 per cent by 2028, while ensuring efficiency, transparency and equity in the management and deployment of public resources.
He said Nigeria’s rapidly growing population, projected to reach about 400 million by 2050, would place increasing pressure on public services and infrastructure.
The Special Adviser identified healthcare, education, infrastructure, security and social protection as critical areas requiring sustainable financing.
He said rising debt obligations, infrastructure financing gaps, rapid urbanisation, unemployment and climate-related challenges had made it imperative for Nigeria to expand its domestic revenue base.
Olufemi, however, emphasised that broadening the tax base should not mean placing heavier burdens on a small number of existing taxpayers.
Rather, he said government must bring more individuals and businesses into the formal economy while making tax compliance simpler, more transparent and easier to understand.
“We don’t want to be collecting taxes from just a few individuals or a few businesses. We need to broaden the tax base and ensure that everyone pays their fair share,” he said.
He identified the formalisation of economic activities, improved taxpayer identification and digital compliance as key measures for expanding Nigeria’s tax base.
According to him, simplifying tax laws and strengthening tax administration would also encourage voluntary compliance.
Olufemi said revenue mobilisation must be linked directly to development outcomes, insisting that citizens should be able to see how taxes paid are improving their communities and quality of life.
He outlined what he described as the key pillars of an inclusive fiscal architecture, including fair and efficient revenue mobilisation, digital collection systems, simplified compliance procedures, equity-driven budget allocation, value-for-money expenditure and stronger citizen engagement.
He also stressed the importance of transparency, open data and independent monitoring mechanisms in rebuilding public trust in government.
“Ultimately, citizens must see the impact of the resources that government collects,” he said, adding that fiscal reforms must protect the dignity of citizens and improve their everyday lives.
The discussion also examined the challenge of bringing informal businesses into the tax net without imposing excessive burdens on micro, small and medium enterprises.
Participants noted that many businesses remained outside the formal economy due to poor record-keeping, limited access to finance, lack of information and the complexity of regulatory requirements.
Stakeholders called for incentives and support systems that would encourage informal businesses to formalise and gradually enter the tax system as they grow.
The participants also highlighted the role of large corporations, business associations and financial institutions in helping small businesses develop the structures required for growth, access to finance and eventual tax compliance.
Banks, they noted, could support SMEs through embedded accounting systems, business advisory services, digital invoicing platforms and other tools that improve record-keeping.
Such measures, according to the speakers, would provide businesses with reliable financial information, improve their access to credit and make compliance with tax obligations easier.
The stakeholders further identified multiple taxation, inadequate public awareness and digital exclusion as major challenges that could undermine the implementation of Nigeria’s tax reforms.
They called for greater harmonisation of taxes to prevent businesses and individuals from being subjected to multiple levies by different government agencies.
Participants also urged the government to intensify taxpayer education and engagement, noting that many Nigerians lacked adequate information about new tax policies and reforms.
On digitalisation, speakers acknowledged that technology was critical to the future of tax administration but warned that reforms must not exclude citizens and businesses without reliable access to the internet or digital tools.
They called for inclusive systems that would accommodate people across different communities and languages.
Transparency and accountability were also identified as critical to building public confidence in Nigeria’s fiscal system.
Stakeholders said government agencies must clearly report what revenue is collected, how it is allocated and the impact of public expenditure on citizens.
They argued that the success of fiscal reforms should be measured not only by revenue growth but also by the number of new taxpayers and businesses brought into the formal economy, the cost of compliance and the impact of government spending on households and communities.
The ultimate question, participants said, was whether increased government revenue was resulting in better roads, improved security, quality education, healthcare and other public services.
Meanwhile, a major highlight of the GS-26 programme was the official launch of the Dream Nigeria Youth Charter, described as a youth-driven framework developed by Nigerian young people with support from the Policy and Innovation Centre (PIC).
Launching the Charter on behalf of the Minister of Youth Development, Ayodele Olawande, the Permanent Secretary of the Federal Ministry of Youth Development said the initiative represented the collective vision and aspirations of Nigerian youths.
The Permanent Secretary explained that the Minister would have loved to personally attend the event but was unable to do so because of official engagements.
“On behalf of the Minister of Youth Development, Ayodele Olawande, who would have loved to be here but due to work exigencies could not, we are launching this beautiful work put together by Nigerian youths themselves and supported over the years by the Policy and Innovation Centre,” he said.
He then formally declared the Dream Nigeria Youth Charter launched and called on stakeholders to support its implementation.
The launch added a youth development dimension to the GS-26 conversations, as participants continued to examine how stronger institutions, inclusive policies and accountable governance could deliver development to Nigerians at the last mile.
