Tax Reform Success Depends on Execution, Not Legislation – Tegbe

Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee (NTPIC), has stressed that the success of Nigeria’s new tax reform framework will rely less on the ambition of the laws and more on disciplined execution. Speaking at the 2026 Leadership Retreat of the Nigeria Revenue Service (NRS), Tegbe emphasised that the country’s tax reform journey is at a critical stage where effective implementation will determine long-term fiscal outcomes.

Tegbe noted that Nigeria’s tax-to-GDP ratio remains among the lowest in major economies, limiting fiscal flexibility and increasing vulnerability to oil price fluctuations. With public expenditure pressures rising and macroeconomic stability increasingly reliant on sustainable domestic revenue, he said, institutional performance is now the key driver of fiscal resilience.

He highlighted that the passage of four new tax laws marks only the start of a wider reform agenda. Tegbe described the initiative as a systemic recalibration of Nigeria’s fiscal architecture, rather than a routine policy update. “The true measure of success will be the credibility of implementation, not the design of the laws themselves,” he said. He added that the NRS serves as the nation’s “Revenue System Integrator,” with outcomes reflecting the strength of an interconnected ecosystem encompassing policy clarity, enforcement consistency, digital infrastructure, dispute resolution efficiency, and intergovernmental coordination.

Central to his address was the principle that tax policy must enable good governance. Tegbe explained that the framework should embody simplicity, equity, predictability, and administrability at scale. These principles, he said, foster voluntary compliance, reduce operational friction, and strengthen investor confidence. Conversely, he warned that ad-hoc adjustments or policy drift could undermine reform momentum, unsettle businesses, and deter investment. “Structured sequencing, clear transition mechanisms, and continuous feedback between policymakers and administrators are critical to sustaining reform credibility,” he said.

Tegbe also stressed that revenue reform cannot succeed in isolation. Sustainable gains require a whole-of-government approach, leveraging robust taxpayer identification systems, integrated financial data, efficient dispute resolution, and harmonised coordination across federal and subnational levels. Such an approach, he noted, reduces leakages, eliminates multiple taxation, and reinforces confidence in the system.

He further expanded the definition of reform success beyond headline revenue figures. Durable reform, he said, should be measured by higher voluntary compliance, lower administrative costs, fewer disputes, faster resolution cycles, and stronger taxpayer confidence. “Sustainable revenue performance is built on trust and efficiency, not enforcement intensity,” Tegbe emphasised, underlining that legitimacy and predictability matter more than punitive measures.

With the legislative framework now established, Tegbe said Nigeria’s focus has shifted from policy design to effective delivery. He stressed that the next phase will be defined by the consistency, coherence, and discipline of implementation. Execution, he concluded, is the defining variable in Nigeria’s revenue transformation. The nation’s ability to achieve lasting fiscal resilience and broaden its revenue base depends on disciplined, credible, and integrated implementation across all levels of government, ensuring the promise of reform translates into measurable, sustainable outcomes for the economy and citizens alike.

In summary, Tegbe framed Nigeria’s tax reform not just as a legislative achievement but as a transformative journey demanding operational rigour, institutional alignment, and a focus on trust, compliance, and efficiency. He made clear that execution discipline is the single most critical factor shaping the nation’s fiscal future.