PRESIDENT Bola Tinubu says his administration’s most impactful achievement is its bold tax reform agenda, which he claims are already yielding results.
“By the end of 2024, our tax-to-GDP ratio rose from 10% to over 13.5%, a remarkable leap in just one year. This was not by accident. It results from deliberate improvement in our tax administration and policies designed to make our tax system fairer, more efficient, and more growth-oriented,” he said in his mid-term speech seen by Economy Post on Thursday.
The Bola Tinubu administration has introduced four tax reform bills at the National Assembly. The tax bills are targeted at raising government revenue, streamlining tax collection and adjusting tax rates across various sectors. They have been passed at the National Assembly.
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“We are eliminating the burden of multiple taxation, making it easier for small businesses to grow and join the formal economy. The tax reforms will protect low-income households and support workers by expanding their disposable income. Essential goods and services such as food, education, and healthcare will now attract 0% VAT. Rent, public transportation, and renewable energy will be fully exempted from VAT to reduce household costs further,” he said.
Mr Tinubu said his government “is ending the era of wasteful and opaque tax waivers.,” noting that he has introduced targeted and transparent incentives supporting high-impact manufacturing, technology, and agriculture sectors. “These reforms are not just about revenue but about stimulating inclusive economic growth,” he noted.
“To promote fairness and accountability, we are establishing a Tax Ombudsman, an independent institution that will protect vulnerable taxpayers and ensure the system works for everyone, especially small businesses.
“Most importantly, we are laying the foundation for a more sustainable future by introducing a new national fiscal policy. This strategic framework will guide our approach to fair taxation, responsible borrowing, and disciplined spending.”
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Mr Tinubu said these reforms are designed to reduce the cost of living, promote economic justice, and build a business-friendly economy that attracts investment and supports every Nigerian. “Together, we are creating a system where prosperity is shared, and no one is left behind.”
He said as a result of his government’s bold and deliberate policies, the economy is growing stronger again. “Real GDP rose by 4.6% in Q4 2024, with full-year growth of 3.4%. This is one of the strongest in a decade.”
Health sector improving
On health, Mr Tinubu said more than 1,000 primary health centres (PHCS) are being revitalised nationwide, claiming that additional 5,500 PHCs are being upgraded under his government’s “Renewed Hope Health Agenda.”
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“We are establishing six new cancer treatment centres. Three are ready. We offer free dialysis services in pilot tertiary hospitals and subsidise the service in others. Under the Presidential Maternal Health Initiative, over 4,000 women have undergone free cesarean sections. Lastly, we have expanded Health Insurance Coverage from 16 million to 20 million within two years.”
Security collaboration
He said without a responsive and reliable national security infrastructure that can protect lives and properties, the Nigerian economy will not perform optimally, “and those who seek to harm us will impair and disrupt our way of life.”
He claimed that his administration is committed to the security and safety of Nigerians. “Since I assumed our country’s leadership, our administration has improved collaboration among security agencies, increased intelligence-driven operations, and better ensured the welfare of our armed forces and security personnel. I use this opportunity to salute the courage and everyday sacrifice of our service men and women. We may not always witness the tremendous efforts they make to keep us safe, but we benefit every day from the results of their dedication. Even if we do not thank them often enough, they willingly face danger so we can go about our lives freely and without fear.”
