Nigeria’s Tax To GDP Lowest Among Major Economies, Says Tegbe

The chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, has said that Nigeria’s tax-to-Gross Domestic Product (GDP) ratio remains among the lowest for major economies, constraining fiscal flexibility and heightening vulnerability to fluctuations in oil prices.

Speaking at the 2026 Leadership Retreat of the Nigeria Revenue Service (NRS), Tegbe stated that the success and implementation of Nigeria’s recently enacted tax reform framework will drive long-term fiscal resilience, foster voluntary compliance, reduce operational friction, and strengthen investor confidence.

According to him, the success and execution of the Tax reform journey relies on the ambition and discipline of legislative efforts in the country to drive long term fiscal outcomes.

According to Tegbe, the country’s tax reform journey is at a critical juncture where effective implementation will determine long-term fiscal outcomes.

He said that with public expenditure pressures rising and macroeconomic stability increasingly dependent on sustainable domestic revenue mobilisation, but argued that institutional performance is now the primary driver of fiscal resilience.

According to Tegbe, the passage of four new tax laws marks the beginning of a broader reform agenda.

He described the initiative as a systemic recalibration of Nigeria’s fiscal architecture, rather than a routine policy update. The true measure of success, he asserted, will be the credibility of implementation, not the design of the laws themselves.

The Nigerian Revenue Service, he noted, functions as the nation’s “Revenue System Integrator,” with outcomes reflecting the strength of an interconnected ecosystem that encompasses policy clarity, consistent enforcement, digital infrastructure, efficient dispute resolution, and intergovernmental coordination.

Central to Tegbe’s address was the principle that tax policy must serve as an enabler of governance. He stressed that the framework must embody simplicity, equity, predictability, and scalability.

These principles, he explained, foster voluntary compliance, reduce operational friction, and strengthen investor confidence. By contrast, ad-hoc adjustments or policy drift, he warned, could undermine reform momentum, unsettle businesses, and deter investment, which thrives on predictable rules rather than shifting announcements. Structured sequencing, clear transition mechanisms, and continuous feedback between policymakers and administrators are therefore critical to sustaining reform credibility.

Tegbe further argued that revenue reform cannot succeed in isolation. Achieving sustainable gains requires a whole-of-government approach that leverages robust taxpayer identification systems, integrated financial data, efficient dispute resolution, and harmonised coordination across federal and subnational levels. This approach, he said, reduces leakages, eliminates multiple taxation, and reinforces confidence in the system.

Importantly, Tegbe expanded the definition of reform success beyond headline revenue figures. Durable reform should be measured by higher voluntary compliance rates, lower administrative costs, fewer disputes, faster resolution cycles, and stronger taxpayer confidence.

Speaking further, he said “Sustainable revenue performance is built on trust and efficiency, not enforcement intensity,” he concluded, emphasising that the legitimacy and predictability of the system are more critical than punitive measures.

With the legislative framework now firmly established, Tegbe noted that Nigeria’s focus has shifted from policy design to effective delivery. The next phase, he stressed, will be defined by the consistency, coherence, and discipline with which the reforms are implemented. Execution, therefore, is the defining variable in the next chapter of Nigeria’s revenue transformation.

The country’s ability to achieve lasting fiscal resilience and broaden its revenue base will depend on disciplined, credible, and integrated implementation across all levels of government, ensuring that the promise of reform translates into measurable, sustainable outcomes for the economy and citizens alike.

In conclusion, Tegbe’s address framed Nigeria’s tax reform not merely as a legislative accomplishment but as a transformative journey requiring operational rigour, institutional alignment, and a focus on trust, compliance, and efficiency. The success of this agenda, he made clear, hinges on execution discipline—making it the single most critical factor in shaping the nation’s fiscal future.