The Chairman of Nigeria’s Presidential Committee on Fiscal Policy and Tax Reforms, Prof. Taiwo Oyedele, has called on young entrepreneurs to embrace proper record-keeping as a critical tool to fully benefit from new tax reforms.
 
Oyedele delivered the message yesterday in Abuja at the closing ceremony of the 7th phase of the MTN Foundation ICT and Business Skills Training, during which nearly 6,000 young Nigerians were inducted into the alumni of tech-enabled entrepreneurs.
 
Oyedele, who was nominated on Tuesday to replace Dr Doris Anite-Uzoka as Minister of State for Finance, highlighted that Nigeria is currently undergoing a major fiscal and economic transformation aimed at simplifying, fairing, and supporting small businesses.
 
For years, he said, the country’s tax system was too complex and fragmented, which discouraged small business owners from formalising their operations.  Oyedele added that entrepreneurs avoided formal registration, not out of defiance, but because navigating the rules was confusing and cumbersome.
 
“The new tax reforms are not about collecting taxes to burden you. They are designed to support small businesses, protect informal enterprises, and create an environment where entrepreneurs can grow, innovate, and sustain their businesses,” Oyedele clarified.
 
He explained that under the reforms, small businesses registered with the Corporate Tax Commission, with an annual turnover below N100 million and assets not exceeding N250 million, qualify for a zero per cent corporate tax rate.
He further stated that informal businesses earning below N12 million a year are fully exempt from company income tax, while those above this threshold will pay only one per cent of their turnover.
 
Also, small businesses, whether registered or not, with a yearly turnover of up to N100 million are exempt from charging Value Added Tax (VAT) on their goods and services.
 
“These measures are designed to protect small businesses from unnecessary burdens and ensure fairness. The goal is to allow informal and micro businesses to formalise without fear, and to give them a predictable system that encourages growth,” Oyedele said.
 
He highlighted the progress of the reforms across Nigeria, noting that 13 states have already enacted the new tax harmonisation law, while several others are in the final stages of approval.