The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has said Nigeria’s new tax reform framework is designed to protect informal and small businesses while encouraging entrepreneurship and economic growth.

Speaking on Wednesday in Abuja at the closing ceremony of the MTN ICT and Business Skills Training Programme (Phase 7), Oyedele said the reforms were introduced to simplify Nigeria’s tax system and make it easier for micro and small enterprises to operate within the formal economy.

According to him, the new tax framework corrects years of complexity and fragmentation that made it difficult for small businesses to comply with tax regulations.

“For many years, our tax system was too complex and too difficult for small businesses to navigate. Many entrepreneurs avoided the formal system not because they wanted to break the rules, but because the rules were unclear or burdensome,” he said.

He explained that the reforms are designed to create a tax system that is simpler, fairer and more transparent, while supporting the growth of small enterprises that form the backbone of Nigeria’s economy.

Oyedele disclosed that under the new framework, small companies with annual turnover below N100 million and assets not exceeding N250 million would enjoy a 0 per cent corporate income tax rate.

He added that certain startups, particularly in the technology sector, would also benefit from special tax exemptions to help them grow without heavy fiscal pressure.

To further support the informal sector, Oyedele said the reforms introduced a presumptive tax regime aimed at very small businesses that may not yet have formal financial records.

Under this system, businesses with annual turnover below N12 million are exempted from tax, while those earning above the threshold will pay only 1 per cent of their turnover as personal income tax.

“This system allows small informal businesses to pay a simple and predictable tax based on basic indicators of economic activity, rather than complex calculations,” he explained.

He also announced that small businesses with turnover below ₦100 million would be exempted from charging Value Added Tax (VAT) and from withholding tax deductions on both income and purchases.

Oyedele further highlighted the introduction of a Tax Harmonisation Law, already adopted by about 12 states, which aims to eliminate multiple taxation, prohibit cash payments for taxes and stop harassment or extortion by tax enforcement agents.

Another major reform, he said, is the creation of the Office of the Tax Ombud, an independent body that will receive complaints from taxpayers, mediate disputes with revenue agencies and address unfair tax assessments.

“The system now includes a neutral referee. If taxpayers believe they have been treated unfairly, they can seek resolution through the Ombud,” he said.

Oyedele urged small businesses to embrace formalisation, noting that it would provide access to credit, government support programmes, legal protection and new market opportunities.

He also encouraged entrepreneurs to adopt digital tools and maintain proper financial records, describing data and record-keeping as critical for business growth.

The tax reform Chief congratulated the 5,980 youths graduating from the MTN Foundation ICT and Business Skills Training Programme, noting that youth entrepreneurship would play a major role in Nigeria’s economic transformation.

He also urged the 600 beneficiaries of equipment grants under the programme to use the resources to expand their businesses and create jobs.

“Nigeria is entering a new economic chapter, and young entrepreneurs will help write that story,” he said.

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