Nigeria Eyes 18% Tax-to-GDP Ratio Through Digital Reforms – Finance Minister Edun
Nigeria is aiming to raise its tax-to-GDP ratio to 18 percent in the medium term, thanks to a series of tax reforms and digitalization initiatives, Finance Minister and Coordinating Minister of the Economy, Wale Edun, has revealed. Speaking at the 2026 G-24 Technical Group Meeting in Abuja, Edun emphasized that these reforms are part of a broader strategy to reduce reliance on external borrowing and strengthen domestic revenue mobilization.
The government is modernizing tax laws, broadening the tax base, and improving compliance through technology-driven platforms such as the National Single Window initiative, RevOp, and a Central Billing System. Edun explained that these tools are designed to eliminate inefficiencies, curb leakages, and prevent direct deductions by portals and PSSPs, creating a fairer and more efficient revenue system.
Edun also linked these domestic reforms to global priorities, noting that Nigeria’s strategy aligns closely with the G-24’s focus on tax cooperation, transparency, base erosion, and the fight against illicit financial flows. He added that the combination of broad-based tax reforms with digital systems will not only improve fiscal resilience but also encourage private investment and sustainable development across the country.
Beyond tax reforms, the Finance Minister called for stronger South-South cooperation and regional integration under the African Continental Free Trade Area (AfCFTA). He highlighted opportunities in technology, industrial parks, and digital innovation as ways to boost trade, stabilize supply chains, and create jobs, particularly for Africa’s growing youth population.
Edun concluded by emphasizing the need for reforms in the global financial system to provide developing nations with reliable funding, including climate finance and innovative financial tools. He stressed that Nigeria’s growth strategy, driven by private investment and domestic reforms, aims for an average medium-term growth of 7 percent, supported by structured PPPs, optimized public assets, and de-risked investment opportunities.
source: The Sun