Iyabo Masha tax reforms push could modernise Nigeria’s economy, as G-24 Technical Group Meeting opens in Abuja

The Director of the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development, Dr Iyabo Masha, on Saturday declared that ongoing tax reforms would support Nigeria’s transition into a modern and more efficient economy as she unveiled the agenda for the G-24 2026 Technical Group Meeting scheduled for Abuja from February 18 to 20.

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Dr Masha, the first African to lead the G-24 since its establishment more than five decades ago, spoke at a press conference in Abuja ahead of the meeting themed “Mobilising Finance to Promote Sustainable, Inclusive, and Job-Rich Economic Transformation”.

Addressing journalists, Dr Masha said Iyabo Masha tax reforms would strengthen domestic resource mobilisation and deepen formalisation across the Nigerian economy.

She described taxation as the most efficient and least destabilising means of financing development.

“Tax and domestic resource mobilisation are fundamental to economic development,” Dr Masha said, noting that governments rely on taxation, borrowing or asset sales to fund infrastructure, education and healthcare, but that taxation remains the most sustainable path.

Dr Masha observed that developing countries often record tax-to-GDP ratios as low as seven per cent, compared with 20 to 30 per cent in more stable economies.

Nations capable of sustaining services and macroeconomic stability typically achieve ratios in the mid-twenties, she added.

Reflecting on Nigeria’s reform drive, Dr Masha said her previous assessment of the country’s tax framework found it fragmented, with weak implementation limiting revenue mobilisation.

The new policy direction, she explained, seeks to broaden the tax net, adjust rates and introduce targeted capital taxation measures to incentivise more efficient production.

Dr Masha acknowledged that reform may be painful in the short term but argued that the long-term gains would be transformative.

The changes, she said, could encourage firms to formalise operations, strengthen public finances and expand employment opportunities.

Providing context, Dr Masha explained that the G-24 was formed during a turbulent period in global economics to amplify the voice of developing economies in negotiations with advanced nations.

The group, headquartered in Washington, DC, holds ministerial meetings twice yearly on the sidelines of the International Monetary Fund and the World Bank gatherings.

Dr Masha highlighted exchange-rate spillovers in what she described as a “dollar world” and underscored the dependence of many developing countries on external financing due to underdeveloped domestic capital markets.

Nigeria, she confirmed, is the chair country this year and will host about 45 delegates, alongside representatives of relevant Nigerian agencies.

The meeting is being organised by the Ministry of Finance and the Central Bank of Nigeria.

The programme will feature five panels, including one marking 80 years of the Bretton Woods institutions, examining reforms to the IMF and World Bank.

Another will explore digital services taxation and how governments can more effectively tax multinational technology firms operating without a physical presence.

Climate change, energy transition, financial inclusion and regional trade integration will also be discussed.

Dr Masha cautioned that oil-exporting countries face a delicate balance between maintaining revenue from extractive industries and shifting towards cleaner energy sources.

On debt sustainability, Dr Masha referenced the G20-backed Common Framework as a mechanism for restructuring external obligations and easing fiscal pressures, stressing the need for prudent debt management to avoid crisis.

The Technical Group Meeting, she said, will enable member states across Africa, Asia and Latin America to harmonise positions ahead of engagements with global financial institutions.

Also read: Nigeria Tax Reforms Bring Major Relief to Low-Income Earners

Dr Masha concluded that coordinated reforms and stronger regional cooperation would be decisive in shaping a resilient and inclusive future for developing economies.