The informal sector in Nigeria will see increased engagement and education ahead of the tax reforms scheduled to take effect in January 2026, according to the Chairman of the Presidential Committee on Tax and Fiscal Policy Reform, Mr Taiwo Oyedele.
Speaking during a session titled “Actualising Tax and Fiscal Reforms: Implications for Businesses” at the Nigerian Economic Summit in Abuja, Mr Oyedele said the committee is collaborating with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to sensitise and engage players in the informal sector and small business associations.
He explained that the committee is developing educational materials in multiple Nigerian languages to ensure widespread understanding of the forthcoming reforms.
“In the coming months, there will be increased awareness efforts, and we encourage individuals to also help educate those in the informal sector,” he said.
Highlighting the need for reform, Oyedele warned that unchecked inflation could mirror the situation in some countries like Zimbabwe, where inflation reached extreme levels.
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In the aviation sector, he clarified that Nigeria’s tax approach aligns with global practices despite concerns about treaty violations.
“There was a treaty in 2024 saying no taxes on passengers and cargoes, but in context, Nigeria is not alone—it’s a global issue in aviation, as with shipping. When cargo emanates from Nigeria, it falls within Nigeria’s jurisdiction to tax. What we have done is not against the treaty; the missing link is education, and we’re engaging aviation stakeholders,” he explained.
He added that the committee has also held discussions with the Tariff Review Board and remains open to further engagements with relevant sectors.
Addressing inclusivity, Oyedele noted that provisions have been made for persons with disabilities and vulnerable groups.
“We have thought about the poor and persons with disabilities,” he said, reaffirming that the reforms are designed to ensure fairness and support economic growth.
He stressed that the reforms are not only vital but unavoidable for national stability.
“If we don’t pay tax in an orderly manner, we will pay in a disorderly manner. We’ve seen in recent years how the printing of ₦30 trillion caused inflation and naira devaluation, and we don’t want that to happen again,” Oyedele warned.