Ex-World Bank adviser Dr Mahmoud Alfa urges Nigerians to support the 2026 tax reform, stressing trust and responsible governance

Former World Bank Political Economic Adviser, Dr Mahmoud Alfa, has called on Nigerians to support the forthcoming 2026 tax reform law, stressing that the success of President Bola Tinubu’s fiscal agenda hinges on public trust and transparent governance.

Also read: Nigeria Tax Reform Laws Take Effect After Gazette

In a statement issued in Abuja on Friday, the Kogi-born economist described the Tinubu administration’s ongoing reforms as “bold and necessary,” noting that while challenges persist, progress is visible.

According to Alfa, Nigeria remains under-taxed compared to other economies, despite grappling with multiple taxation, particularly within the trade and commerce sectors.

“While the Tinubu-led administration promises reforms to fix multiple taxation to improve the ease of doing business, citizens, especially traders, still face it as a reality.

The change is not yet where it should be, but there are positive improvements,” he said.

Alfa, who also serves as Chief Executive Officer of Vibranium Group, acknowledged public apprehension about the new tax law — set to take effect on January 1, 2026 — but argued that effective taxation is essential for national development.

“The essence of taxation cannot be overemphasised. Advanced nations owe much of their development to taxes. In Nigeria, reliance on debt persists because citizens do not trust the government enough with their taxes,” he noted.

He lamented widespread tax evasion and low accountability, urging both citizens and government to rebuild mutual trust.

“Refusing to pay tax is a crime, same as stealing tax funds. Nigerians are under-taxed compared to countries like the UK and Spain. Paying and managing taxes transparently are two sides of the same coin,” Alfa added.

The economist also praised Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, for leading public enlightenment on the reforms.

Alfa’s remarks follow Oyedele’s recent projection that states could earn over N4 trillion annually from 2026 when the new Value Added Tax (VAT) structure takes effect.

Speaking at the launch of the BudgIT State of States 2025 Report in Abuja, Oyedele disclosed that states’ VAT share will rise to 55 per cent, paving the way for greater fiscal independence.

He noted that despite an increase in federal allocations — from N5.4 trillion in 2023 to N11.4 trillion in 2024 — many Nigerians still face economic strain.

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

“States are receiving more money than ever before. But there is a paradox: while governments have more naira, ordinary Nigerians have less disposable income,” Oyedele said, urging governors to invest in infrastructure, education, and healthcare to ensure the reforms deliver tangible benefits.