The Federal Government has commenced another review of Nigeria’s fiscal and tax framework as it prepares the proposed Finance Bill 2027, with the exercise expected to address implementation challenges, multiple taxation, compliance costs and other emerging concerns affecting businesses, investors and taxpayers across the country.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this in Abuja while inaugurating the Technical Subcommittee on Fiscal Policy and Tax Reforms. He explained that the latest exercise was not intended to dismantle or rewrite the major tax reforms enacted in 2025, but to identify areas where adjustments may be required based on practical experience and changing economic conditions.

According to Oyedele, the true test of the reforms began when the new laws moved from legislation into actual application by businesses, investors, tax administrators and ordinary citizens. He said government had received 134 submissions from across Nigeria’s six geopolitical zones following its invitation for stakeholders to provide input into the next phase of the reforms.

The submissions, he said, highlighted several concerns, including the complexity of some provisions of the new tax laws, Value Added Tax thresholds, withholding tax, capital gains treatment, multiple taxation and the need for better coordination among revenue authorities. Stakeholders also called for greater digitalisation and data-sharing among government institutions to reduce situations where taxpayers are repeatedly required to submit information that is already in the possession of government agencies.

Other proposals focused on strengthening taxpayer rights, speeding up tax refunds and introducing safeguards for small businesses. Stakeholders also submitted recommendations aimed at improving Nigeria’s competitiveness and investment climate in sectors such as mining, renewable energy, healthcare and the capital market.

Oyedele said the newly constituted subcommittee would subject the submissions to detailed technical assessment, stressing that recommendations would be considered on the basis of evidence and their implications for the national interest rather than the identity or institutional interests of those making them.

He said the proposed Finance Bill 2027 should be viewed as part of an ongoing reform process rather than another routine annual legislative exercise. According to him, government’s objective is to preserve the fundamental principles of the 2025 reforms while responding to problems revealed during implementation and adapting to new economic realities.

“Our task is not to rewrite the 2025 reforms, but to preserve their fundamental principles while learning from implementation and responding to new economic realities,” he said.

The minister also warned that the pursuit of higher government revenue should not result in policies that impose greater costs on the wider economy. He explained that a measure could increase government revenue in the short term while simultaneously discouraging investment, reducing production, slowing business expansion or increasing the cost of operating within the formal economy.

He identified competitiveness, productivity, investment, manufacturing expansion and formalisation as some of the issues that must guide the next phase of the tax reforms. He reiterated the government's broader philosophy that taxation should focus on wealth and value creation rather than placing excessive pressure on capital and productive activity.

Oyedele further described complexity in tax regulations as a cost in itself, arguing that complicated rules increase compliance expenses for businesses and taxpayers while creating opportunities for discretion and regulatory arbitrage.

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The subcommittee has also been assigned to review the Deduction of Tax at Source Regulations 2024 and prepare revised Withholding Tax Regulations that are consistent with the new tax laws. Oyedele stressed that withholding tax should remain primarily an advance-payment and compliance mechanism and should not become an additional cost of doing business or unnecessarily tie down companies’ working capital.

Another aspect of the assignment involves reviewing the Companies Income Tax (Significant Economic Presence) Order 2020 and developing an updated framework that reflects Nigeria’s new tax laws and international practices. The issue is particularly relevant as Nigeria seeks to protect its tax base while remaining attractive to technology companies and international investors operating in an increasingly digital and interconnected economy.

Oyedele said Nigeria must strike a balance between exercising its legitimate taxing rights and maintaining a competitive environment capable of attracting international investment. He therefore urged the subcommittee to consider the broader economic consequences of every proposed change rather than focusing exclusively on potential revenue gains.

The minister also directed the committee to examine how proposed reforms could affect different categories of Nigerians, particularly low-income households, workers, small businesses, women and young people. He said every proposed amendment should be tested against fundamental questions about the problem it is intended to solve, the cost of implementing it, who would benefit, who would bear the burden and what unintended consequences might arise.

The committee brings together representatives from the Ministry of Finance, Ministry of Justice, Nigeria Revenue Service, Joint Revenue Board, Nigeria Customs Service, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), organised private sector and professional bodies.

Oyedele said the composition was designed to encourage institutions to resolve technical and policy issues collectively instead of relying on prolonged inter-agency correspondence.

Members of the subcommittee have been given six weeks to complete their assignment and submit their report. They have also been directed to maintain confidentiality regarding deliberations and working documents until authorised for release and to disclose any potential conflicts of interest.

The minister described the latest review as another stage in Nigeria’s broader tax reform journey. He explained that while the first phase focused largely on restructuring the architecture of the tax system, the present phase must concentrate on making the new system work more effectively for the economy.

For the Federal Government, the outcome of the exercise could shape the proposed Finance Bill 2027 and determine how several concerns raised by taxpayers, businesses and investors since the implementation of the new tax regime are addressed.

“Success will not be measured by how many sections we change, but by how many real problems we solve,” Oyedele said.