Shettima: Tax Reforms to Alleviate Poverty, Not Impoverish

Vice President Kashim Shettima, speaking on behalf of President Bola Tinubu at an interfaith breakfast during Ramadan on Wednesday at the State House in Abuja, dismissed claims that the federal government's tax reforms would impoverish Nigerians. He asserted that the policies are designed to eliminate burdens on small businesses and low-income earners.

Shettima urged government officials to educate citizens about the reforms, which he described as instruments to lift people out of poverty without adding financial burdens. He highlighted the economic benefits of the reforms, including increased foreign exchange reserves and a streamlined exchange rate.

The tax reform act, effective January 1, 2026, consolidates 60 taxes into fewer than 10 and introduces provisions such as zero income tax for Nigerians earning less than N800,000 annually and exemptions for small businesses with turnovers below N50 million. Despite criticism from opposition parties and civil society groups regarding potential increased tax burdens, the government maintains that the reforms are pro-poor and shift the tax burden from low-income earners to wealthier individuals and corporations.