Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has cautioned that the country cannot continue to rely on borrowing to drive development, stressing the urgent need for a sustainable fiscal framework.

Speaking at the 28th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja, Oyedele emphasized that Nigeria must build a system capable of funding critical infrastructure, education, healthcare, security, and social protection without excessive dependence on loans.

> “Nigeria cannot continue to finance development primarily through borrowing. We must build a fiscal system capable of sustainably supporting critical infrastructure, quality education, affordable healthcare, security, and social protection,” he said.

His remarks come at a time when the Federal Government is in discussions with the World Bank over a proposed $1.25 billion loan aimed at reforms, job creation, and competitiveness. Oyedele explained that Nigeria’s tax reforms are designed to fix structural issues such as multiple taxation, weak compliance, fragmented administration, and overdependence on limited revenue sources. According to him, businesses have long faced overlapping debts, unpredictable enforcement, and rising compliance costs, while citizens often perceived the tax system as unfair because the burden was unevenly distributed.

The minister highlighted that reforms are being introduced to simplify taxation, improve fairness, attract investment, and strengthen public trust. Minimum wage earners have been exempted from personal income tax, while reliefs have been introduced for low- and middle-income earners. Planned reductions in corporate tax rates and reforms in VAT are also expected to ease costs and curb inflation. Oyedele added that the government is working with states to reduce multiple taxation, with 15 states already adopting harmonisation laws. He further stated that digital systems, automation, and data integration will drive the future of tax administration in Nigeria.