The Federal Government has said its ongoing tax reforms are encouraging more informal businesses to become officially registered, with about 10,000 businesses now applying for registration with the Corporate Affairs Commission (CAC) every day.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, revealed this while speaking at the BusinessDay 14th Annual CEO Forum in Lagos. He explained that the government deliberately introduced tax reforms to make it easier and more attractive for business owners to operate legally.
According to the minister, the response has been far greater than expected. He said officials at the Corporate Affairs Commission informed the government that they had seen an average of 10,000 informal businesses applying for registration daily, describing the development as a major achievement.
Oyedele explained that the government’s goal is not only to get businesses registered but also to support them so they can grow and contribute more to the economy. He noted that many of these newly registered businesses now qualify for tax exemptions, making formal registration more beneficial than remaining outside the official system.
He added that once businesses become formal, the government can provide them with better opportunities, including business training, management support, access to affordable loans, and other resources that can help them expand. As these businesses grow, they will create more jobs, increase economic activities, and contribute more value to Nigeria’s economy.
The minister stressed that the government’s tax reforms are not aimed at increasing taxes or making life more difficult for successful businesses. Instead, the focus is on bringing more businesses into the tax system, making tax payment easier, and using technology to improve the entire process.
He said the reforms are also designed to end the problem of multiple taxation, which has been a major complaint among business owners for years. Reducing unnecessary tax burdens and simplifying compliance, he explained, will encourage more entrepreneurs to operate legally without fear of excessive charges.
Oyedele described the reforms as more than just changes to the tax system. According to him, they represent a complete reset of Nigeria’s fiscal policies, with the aim of creating an economy where growth benefits everyone rather than a few individuals.
He also highlighted the importance of investing in people through education, vocational training, and skills development. These efforts, he said, are necessary to prepare Nigerians for better employment opportunities while improving the productivity of businesses across the country.
The minister emphasized that small and medium-sized enterprises (SMEs) remain the backbone of Nigeria’s economy. Rather than supporting them as an act of charity, he said the government recognizes that these businesses are responsible for creating jobs, promoting innovation, and driving economic growth at the grassroots level.
Looking ahead, Oyedele said Nigeria has already made significant progress in restoring economic stability. The next challenge, he noted, is to transform that stability into increased investment, higher productivity, more employment opportunities, and improved incomes for citizens.
He expressed confidence that with continued support for businesses and effective implementation of the tax reforms, Nigeria can build a stronger economy where both businesses and citizens enjoy lasting prosperity.
