One year after the tax reform laws: Tinubu’s economic foresight is taking shape, By Aderonke Atoyebi

One year after President Bola Ahmed Tinubu signed Nigeria's landmark tax reform laws, the nation is witnessing a transformation in how it generates and manages revenue. The shift marks a departure from an economy historically reliant on crude oil toward one increasingly powered by sustainable domestic income. The reforms, which were met with skepticism initially, are now showing tangible outcomes, reinforcing President Tinubu’s vision and the leadership of Nigeria Revenue Service (NRS) Chairman Zacch Adedeji. The reforms, enacted in early 2025, aimed to overhaul Nigeria’s tax system by simplifying procedures, eliminating double taxation, encouraging voluntary compliance, supporting businesses, and ensuring the government had reliable funding for development. For years, Nigeria’s budget was vulnerable to fluctuations in global oil prices, leading to inconsistent public spending and stalled progress. President Tinubu’s Renewed Hope Agenda recognized this vulnerability and opted instead for a strategy centered on diversifying revenue streams. Leadership and execution proved critical to translating policy into impact. Under the guidance of Zacch Adedeji, the NRS has demonstrated exceptional capability in improving tax administration. His tenure has been marked by technological upgrades, enhanced compliance mechanisms, and improved taxpayer engagement. These measures have contributed to a notable rise in tax revenues, reflecting both the effectiveness of the reforms and the efficiency of the administrative changes. Between January and June 2026, the NRS collected ₦21.6 trillion in tax revenue, marking a 49 percent increase compared to the same period in 2025. In June alone, Value Added Tax amounted to ₦799.75 billion, contributing to a total statutory revenue of ₦3.701 trillion entering the Federation Account. The gross revenue recorded was ₦4.501 trillion, from which the Federation Account Allocation Committee disbursed ₦2.55 trillion to the federal government, state governments, and local government councils. This upward trend is part of a broader trajectory. Nigeria’s tax revenue increased from around ₦10.1 trillion in 2023 to approximately ₦21.6 trillion in 2024, and further to about ₦36.8 trillion in 2025. With ₦21.6 trillion already achieved in the first half of 2026, the country appears poised for yet another record year. The growth is attributed to several deliberate initiatives, including improved tax administration, widespread adoption of technology, mandatory electronic invoicing for major taxpayers, stricter enforcement against revenue leakage, and a more open and efficient collection process. The tax reform laws signed by President Tinubu one year ago have played a pivotal role in enabling these advancements. They introduced a modern legal structure promoting fairness, simplicity, and stronger compliance. This legislative foundation has allowed the NRS to implement necessary changes effectively, aligning Nigeria’s fiscal policies with international best practices. Nigeria’s journey mirrors experiences in other countries that have successfully diversified their economies. For instance, India saw substantial expansion in tax collections after implementing its Goods and Services Tax. Brazil made strides in compliance through electronic invoicing systems, while Indonesia modernized its tax administration using digital tools. These examples underscore the potential of structural reforms in transforming national economies. As Nigeria continues to build on its current momentum, the focus remains on sustaining the gains made and expanding the scope of domestic revenue generation. The success of the past year offers a promising outlook, demonstrating that strategic reforms, supported by capable leadership, can lead to meaningful economic transformation. The coming months will test the durability of these achievements, but the groundwork laid by President Tinubu and his team suggests a future where Nigeria’s economy is less dependent on volatile external factors and more resilient through internal strength.