Politics

Tax reforms will reduce poverty, not impoverish Nigerians– Shettima

Published by Akinwale Fakinlede on March 4th, 2026.

Tax reforms will reduce poverty, not impoverish Nigerians– Shettima

Nigeria’s Vice President, Kashim Shettima, has assured Nigerians that the Federal Government’s ongoing tax reforms are designed to ease economic hardship and lift millions out of poverty rather than deepen financial strain.

Speaking at a policy dialogue in Abuja, Shettima dismissed concerns that the proposed adjustments to the tax system would impose fresh burdens on low-income earners and small businesses. According to him, the reforms are carefully structured to promote fairness, expand the tax base, and ensure that those with greater financial capacity contribute proportionately to national development.

The Vice President explained that Nigeria’s current tax framework has long been criticized for inefficiencies, leakages, and overdependence on a narrow segment of taxpayers. He stressed that reforming the system is essential to strengthening government revenue without overtaxing vulnerable citizens. “Our objective is not to impoverish Nigerians,” he said. “It is to build a system that supports growth, reduces inequality, and provides resources for social investment.”

Shettima noted that one of the core components of the reform is improving tax collection mechanisms through digitalization and transparency. By blocking loopholes and enhancing compliance among high-earning individuals and large corporations, the government aims to generate more revenue for infrastructure, healthcare, education, and social welfare programmes.

He further emphasized that the reforms would prioritize small and medium-scale enterprises (SMEs), which form the backbone of Nigeria’s economy. Measures under consideration include simplified filing processes and incentives to encourage business expansion. The administration believes that supporting SMEs will stimulate job creation and help reduce poverty levels nationwide.

Addressing fears of rising living costs, the Vice President maintained that the government is mindful of current economic realities and would not introduce policies that worsen inflationary pressures. Instead, he argued that a more efficient tax regime would reduce waste and improve service delivery, ultimately benefiting ordinary citizens.

Shettima also called on stakeholders, including lawmakers, private sector leaders, and civil society groups, to engage constructively with the reform process. He said broad consultation is key to building a tax system that commands public trust and aligns with international best practices.

The Federal Government has repeatedly stated that diversifying revenue sources is crucial for long-term stability, especially in the face of fluctuating oil prices. By strengthening non-oil revenue through fair taxation, the administration believes Nigeria can reduce its borrowing needs and channel more funds into poverty-alleviation initiatives.

As debates continue across the country, Shettima reassured Nigerians that the reforms are guided by a commitment to shared prosperity. He expressed confidence that once fully implemented, the new tax framework would serve as a catalyst for inclusive growth, ensuring that economic progress translates into tangible improvements in the lives of citizens.