Chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, has declared that the long-term success of Nigeria’s newly enacted tax reform framework will depend more on disciplined implementation than on the ambition of the laws themselves.
Speaking at the 2026 Leadership Retreat of the Nigeria Revenue Service (NRS), Tegbe stressed that Nigeria’s tax reform journey has reached a decisive stage, where the credibility of execution will ultimately determine fiscal sustainability and economic stability.
Tegbe noted that Nigeria’s tax-to-GDP ratio remains one of the lowest among major economies, limiting fiscal flexibility and exposing the country to persistent vulnerability from oil price fluctuations.
With mounting public expenditure pressures and macroeconomic stability increasingly tied to domestic revenue mobilisation, he argued that institutional performance has become the primary pillar of fiscal resilience.
According to him, while the passage of four new tax laws signals a significant milestone, it represents only the foundation of a broader fiscal transformation agenda.
“This is not a routine policy update,” Tegbe said, describing the reforms as a systemic recalibration of Nigeria’s fiscal architecture. “The true measure of success will be the credibility of implementation, not merely the sophistication of the legislation.”
Tegbe characterised the NRS as the nation’s “Revenue System Integrator,” emphasizing that outcomes would reflect the strength of a connected ecosystem involving policy clarity, enforcement consistency, digital infrastructure, dispute resolution efficiency, and coordination across all tiers of government.
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He warned that reform momentum could easily be undermined by ad-hoc adjustments or policy drift, which may unsettle businesses and discourage investment. Investors, he noted, thrive on predictability and stable rules, not shifting regulatory announcements.
To safeguard reform credibility, Tegbe called for structured sequencing of policy rollouts, clear transition mechanisms, and continuous feedback loops between policymakers and tax administrators.
Tax Policy as a Governance Enabler
Central to his address was the assertion that tax policy must serve as an enabler of governance. Tegbe outlined key principles that should underpin the new framework: simplicity, equity, predictability, and administrability at scale.
He explained that these pillars encourage voluntary compliance, reduce administrative friction, and build investor confidence. In contrast, excessive reliance on enforcement or punitive measures could weaken trust in the system.
“Sustainable revenue performance is built on trust and efficiency, not enforcement intensity,” he stated.
Tegbe further argued that revenue reform cannot succeed in isolation. He advocated a whole-of-government approach anchored on robust taxpayer identification systems, integrated financial data platforms, efficient dispute resolution processes, and harmonised coordination between federal and subnational governments.
Such integration, he said, would help eliminate leakages, reduce instances of multiple taxation, and strengthen confidence in Nigeria’s tax system.
Importantly, he broadened the metrics for evaluating reform success beyond headline revenue figures. Durable reform, he noted, should be assessed through higher voluntary compliance rates, lower administrative costs, fewer tax disputes, faster resolution timelines, and improved taxpayer confidence.
With the legislative groundwork now in place, Tegbe said Nigeria’s reform agenda has entered a new phase focused squarely on delivery. The next chapter, he stressed, will be defined by consistency, coherence, and institutional discipline.
Execution, he concluded, is the single most critical variable shaping Nigeria’s fiscal future. The country’s ability to broaden its revenue base and achieve lasting fiscal resilience will hinge on credible, integrated implementation across all levels of government—ensuring that reform promises translate into measurable, sustainable outcomes for businesses, citizens, and the broader economy.
In framing the reform process as a transformative journey rather than a legislative accomplishment, Tegbe made clear that operational rigor, institutional alignment, and a culture of trust and compliance will determine whether Nigeria’s tax reforms achieve their intended impact.