Tinubu Attributes Poverty in Nigeria to Outdated Tax Regulations

President Bola Ahmed Tinubu remarked on Tuesday that the antiquated tax laws originating from the colonial era have exacerbated poverty among Nigerians due to their fragmented nature, multiplicity, and inconsistencies. He assured citizens that upcoming reforms would promote greater economic prosperity and inclusivity.

During his address, President Tinubu underscored that the revamped tax framework aims to prioritize citizens and foster a friendly environment for investments, thus accelerating national development objectives.

The President's comments were made at the inauguration of the new 16-storey headquarters for the Nigeria Revenue Service (NRS).

In attendance were Senate President Godswill Akpabio and House of Representatives Speaker Tajudeen Abbas, as well as numerous ministers, senators, members of the House, private-sector leaders, and governors from various states, including Kwara, Imo, Borno, Kogi, Plateau, and Anambra.

President Tinubu elaborated that the newly introduced tax laws, which were fully operational as of January, are designed to free the economy from outdated regulations while enhancing its competitiveness globally.

"On my inauguration day, I pledged to transition Nigerians from the shadows of uncertainty into a realm of renewed optimism. I vowed to address structural challenges, restore financial stability, and cultivate an economy rooted in fairness, discipline, and opportunity. Today, I reaffirm that these commitments were not mere rhetoric; they represent a promise to the Nigerian people," he stated.

The President praised Dr. Zacch Adedeji, the Executive Chairman of the NRS, for his exceptional leadership in the construction of the new headquarters, which accommodates approximately 3,000 employees and includes a data center, clinic, auditorium, training facilities, gym, and library.

Tinubu expressed satisfaction with the completion of the NRS headquarters within just 30 months, a significant achievement considering that the groundwork had been laid over two decades ago.

"We are not merely commissioning a building; we are celebrating a crucial milestone in our national journey toward solidifying our financial infrastructure and rebuilding trust in public institutions. Sustainable prosperity for any nation cannot stem from a weak and disjointed revenue framework. No government can expect trust from its citizens when the tax system is opaque, inefficient, or unjust," the President emphasized.

He also acknowledged the efforts of the Minister of State for Finance, Taiwo Oyedele, commending his role in modernizing colonial tax regulations into a more manageable and comprehensible framework.

Regarding apprehensions around the tax reforms, Tinubu reassured that the NRS has restructured itself into a revenue center, armed with infrastructure and technology, driven by research-based policies, and attuned to the public's needs, particularly vulnerable citizens.

"The reforms aim to simplify our tax system, eliminate distortions, and establish a fair and transparent environment conducive to investment. Our goal is straightforward: to advance a revenue system that incentivizes entrepreneurship, fuels growth, and ensures that each contribution leads to tangible benefits for the populace," he expressed.

"The initial outcomes are promising and laudable. Mr. Adedeji, your efforts are yielding enhanced fiscal stability, stronger foreign reserves, an improved trade environment, and growing investor confidence in Nigeria's economic trajectory," the President continued.

He reiterated the notion that these advancements are not coincidental but the result of intentional policy decisions, ongoing effort, and a genuine commitment to the nation's long-term prosperity. The commissioning of the NRS headquarters symbolizes more than just physical infrastructure; it embodies a new standard of professionalism, accountability, transparency, and service.

The President urged the NRS's leadership to maintain high standards, ensuring that while revenue collection is essential, it is just as important to foster trust, uphold fairness, and demonstrate accountability and efficiency.

Senate President Godswill Akpabio encouraged Nigerians to be patient with the Tinubu administration, emphasizing that the economic reforms are already taking effect positively.

"It is noteworthy that we no longer see long queues of vehicles at fuel stations—a stark contrast to the past when many were willing to pay exorbitant prices for fuel that was unavailable. Today, we observe no fuel lines across Nigeria," he remarked.

The Speaker of the House of Representatives, Tajudeen Abbas, praised President Tinubu for his work in stabilizing and improving the economy through innovative reforms.

Dr. Zacch Adedeji described the inauguration of the NRS headquarters as a significant achievement in the institution's evolution, highlighting the challenges faced when the current administration took office and the strides made since then towards fiscal credibility and a unified economic framework.

He expressed gratitude to President Tinubu for his visionary guidance, acknowledging the significant reform of Nigeria's revenue policies and the integration of over 60 disparate tax laws into a coherent system, which enhances compliance and governance.

Adedeji characterized the new tax structure as not merely an increase in tax burdens but rather a more efficient system with expanded reach. He pointed out the remarkable growth in revenue collections from N6.8 trillion five years ago to N28.7 trillion in 2025.

He further added, "In May 2023, the total funds available for the federation stood at N711 billion; by September 2025, it had surged to N3.6 trillion—an impressive increase of 400%. The improvements in trade systems, exemplified by the recently introduced National Single Window, show promise in reducing inefficiencies and bolstering revenue."