Vice President Kashim Shettima has stated that the federal government’s ongoing tax reforms are intended to improve the living conditions of Nigerians and ease the financial pressure on small businesses and low-income earners, rather than worsen their situation.
Shettima made the remarks on Wednesday in Abuja while speaking on behalf of President Bola Ahmed Tinubu at an interfaith breaking of fast held at the State House to mark the observances of Ramadan and Lent.
According to the vice president, the reforms are designed to eliminate the multiple levies and charges that have long weighed heavily on small businesses and ordinary Nigerians.
He explained that the policies were carefully crafted to enhance livelihoods and reduce poverty, contrary to the claims made by critics of the administration.
“The same people who are shouting hoarse that the tax reform is meant to pulverise further and pauperise the poor are far from the truth, but we have to go out and tell the truth to the people.
“We have to educate them. We have to mount the pulpits and take our government to the Nigerian people and tell them the truth,” Shettima said.
He urged senior government officials to act as advocates of the administration’s reforms by clearly communicating the policies and their benefits to citizens across the country.
The vice president also pointed to some results of the government’s broader economic reforms, including improved foreign exchange reserves, the unification of exchange rates and the removal of the long-standing fuel subsidy.
Shettima commended President Tinubu for what he described as the courage to tackle structural economic challenges that previous administrations had avoided.
The former Borno State governor noted that although the removal of the fuel subsidy was not initially mentioned in the president’s 2023 inaugural speech, the move became necessary because the subsidy system was draining national resources needed for development.
“Three years down the road, the economy has bounced back,” he said.
He also expressed appreciation to government officials for their continued backing of the administration’s policies.
“On behalf of the president, I want to thank you all for comradeship, support, and partnership,” he added.
Tax reform laws
Nigeria’s 2025 Tax Reform Acts, which came into effect on 1 January 2026, seek to simplify tax administration, eliminate nuisance taxes and shift the burden from low-income earners to wealthier individuals and large corporations.
The legislation was signed into law last year after months of controversy and heated debates among Nigerians, particularly opposition figures and civil society organisations.
The four bills — the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill and the Joint Revenue Board (Establishment) Bill — were passed by the National Assembly of Nigeria following extensive deliberations.
Under the new tax regime, lower-income earners benefit from higher income tax thresholds, while small businesses with lower turnover may receive exemptions. Corporate tax has been reduced to 25 per cent, while a four per cent development levy and a 15 per cent minimum tax have been introduced for large multinationals. Essential goods such as food and healthcare are also zero-rated for VAT.
The Federal Inland Revenue Service has been renamed the Nigeria Revenue Service to serve as the country’s central tax authority.
On 3 March 2026, President Tinubu appointed Taiwo Oyedele, the architect of the reforms, as minister of state for finance to oversee their implementation.