Minister of Finance Admits Flaws in Tax Reforms, Promises Urgent Fix

By Micheal Chukwuebuka

Minister of State for Finance, Taiwo Oyedele, has admitted that Nigeria’s new tax reform laws contain errors, assuring that steps are already in motion to correct them.

Speaking at the 2026 Nigerian Bar Association Section on Legal Practice conference themed “From Policy to Practice: Making Sense of Nigeria’s New Tax Reforms,” Oyedele said the discrepancies arose from lapses during the lawmaking process.

According to the Fiscal Reforms Committee, he acknowledged that “errors occurred due to manual processes and multiple stages of review,” urging Nigerians to await the outcome of an ongoing legislative probe.

Oyedele revealed that the issues would be addressed through a proposed Finance Bill, while calling for a more transparent system where all versions of laws are publicly accessible. “What we need is a more transparent and reliable legislative process,” he said.

He maintained that enforcement of the reforms would not be arbitrary, stressing that the policy is built on transparency, fairness and clear intent. He also urged stakeholders to focus on the rationale behind tax laws, noting that policy intent should guide interpretation.

Highlighting past challenges, Oyedele said inconsistencies in Nigeria’s tax system discouraged business formalisation and hurt investor confidence. “If policies can change overnight, it sends the wrong signal to investors. Consistency is critical,” he said.

He added that the new reforms aim to promote fairness, protect low income earners and ease the burden on small businesses. According to him, taxing Nigerians earning around N1 million annually or less would be unjust, noting that nearly half of workers earn below N70,000 monthly.

The minister also said the reforms eliminate minimum tax for loss making businesses, describing the previous system as taxing capital instead of profit.