The federal government has said Nigeria must build a stronger, fairer and more efficient tax system to generate the resources needed to achieve the Sustainable Development Goals (SDGs), warning that the country’s tax-to-GDP ratio remains below the level required to finance its development ambitions.
The minister of finance and coordinating minister of the economy, Taiwo Oyedele made the declaration on Wednesday in Abuja while delivering a keynote address at a Capacity Building Session involving Chairpersons of State Internal Revenue Services, the Joint Revenue Board and a visiting delegation from Ethiopia studying Nigeria’s Integrated National Financing Framework (INFF).
Oyedele said domestic resource mobilisation remains the foundation of sustainable development financing and national sovereignty, stressing that no country can depend indefinitely on external assistance to fund critical investments in infrastructure, healthcare, education and social protection.
“Nigeria’s tax-to-GDP ratio, while improving, remains below the level required to finance our development ambitions,” the minister said.
“Closing this gap is not merely a fiscal imperative; it is a development imperative. Every additional percentage point in our tax-to-GDP ratio translates into greater capacity to invest in infrastructure, healthcare, education, social protection and economic opportunity.”
According to him, the government’s objective is not to impose a heavier tax burden on citizens but to create a revenue system that is fairer, more efficient and supportive of economic growth while encouraging voluntary compliance.
The minister called on State Internal Revenue Services across the federation to deepen collaboration through the Joint Revenue Board to harmonise tax administration, strengthen intelligence sharing and improve revenue collection efficiency.
Oyedele noted that Africa faces a significant financing gap in achieving both the United Nations Sustainable Development Goals and the aspirations of the African Union’s Agenda 2063.
He said dwindling concessional financing, climate-related pressures and the lingering effects of post-pandemic economic recovery have increased fiscal strain across the continent.
Rather than viewing the challenge with pessimism, he argued that African countries must rethink how development is financed and ensure that all available sources of capital are aligned with national priorities.
“The future of development financing will not be determined solely by the resources available to us, but by how effectively we mobilise, align and deploy those resources in support of national priorities,” he said.
Highlighting Nigeria’s progress under the Integrated National Financing Framework, the minister said the country had established a multi-stakeholder steering committee, conducted a comprehensive Development Finance Assessment and developed a financing strategy aligned with the Medium-Term National Development Plan.
He added that the framework has helped strengthen domestic revenue mobilisation, accelerate the digitalisation of tax administration, deepen engagement with international capital markets through green and sustainability-linked instruments, and improve accountability mechanisms for development outcomes.
Oyedele described the INFF as a “living framework” rather than a static policy document, saying it would continue to evolve in response to changing economic realities.
He reaffirmed Nigeria’s commitment to expanding private-sector participation, mobilising climate finance and strengthening subnational financing systems as the country moves closer to the 2030 deadline for achieving the SDGs.
Welcoming the Ethiopian delegation, Oyedele said both countries share similar development challenges, including youthful populations, infrastructure deficits and the need to balance economic ambitions with fiscal sustainability.
He urged the visitors to engage openly with their Nigerian counterparts, exchange ideas and share lessons that could help both nations strengthen their development financing strategies.
The minister also commended the Office of the Senior Special Assistant to the President on Sustainable Development Goals (OSSAP-SDGs), which serves as the secretariat of Nigeria’s INFF process, as well as the United Nations Development Programme (UNDP) and other development partners for their technical and financial support.
Expressing optimism about Africa’s future, Oyedele said the continent possesses the talent, ideas and ambition needed for transformation, but must strengthen institutions and align resources more effectively with development priorities.
“Africa is not short of ambition. Africa is not short of talent. Africa is not short of ideas,” he said.
“What we require is the discipline to align our resources with our priorities and the institutions capable of sustaining that alignment over time, he added.
