Oyedele urges entrepreneurs to harness tax reforms through record-keeping

The Chairman of Nigeria’s Presidential Committee on Fiscal Policy and Tax Reforms, Prof. Taiwo Oyedele, has called on young entrepreneurs to embrace proper record-keeping as a critical tool to fully benefit from new tax reforms.

Prof. Oyedele delivered the message on Wednesday in Abuja, at the closing ceremony of the 7th phase of the MTN Foundation ICT and Business Skills Training, which saw nearly 6,000 young Nigerians inaugurated into the alumni of tech-enabled entrepreneurs.

Oyedele, who was nominated on Tuesday to replace Dr. Doris Anite-Uzoka as Minister of State for Finance, highlighted that Nigeria is currently undergoing a major fiscal and economic transformation aimed at making the tax system simpler, fairer, and more supportive of small businesses.

For years, he said, the country’s tax system was too complex and fragmented, which discouraged small business owners from formalising their operations, adding that entrepreneurs avoided formal registration, not out of defiance, but because navigating the rules was confusing and cumbersome.

“The new tax reforms are not about collecting taxes to burden you. They are designed to support small businesses, protect informal enterprises, and create an environment where entrepreneurs can grow, innovate, and sustain their businesses,” Oyedele clarified.

He explained that under the reforms, small businesses registered with the Corporate Tax Commission and with an annual turnover below 100 million Naira and assets not exceeding 250 million Naira qualify for a 0% corporate tax rate.

He stated further that informal businesses earning below 12 million Naira a year are fully exempted from company income tax, while those above this threshold will pay only 1% of their turnover.

Also, Small businesses, whether registered or not, and with annual turnover of up to 100 million Naira, are also exempt from charging Value Added Tax (VAT) on their goods and services.

“These measures are designed to protect small businesses from unnecessary burdens and ensure fairness. The goal is to allow informal and micro businesses to formalise without fear, and to give them a predictable system that encourages growth,” Oyedele said.

He highlighted the progress of the reforms across Nigeria, noting that 13 states have already enacted the new tax harmonisation law, while several others are in the final stages of approval.

“These states now have legal frameworks that eliminate nuisance taxes and ensure that any tax due can be paid easily via mobile or bank transfer, reducing harassment and ensuring compliance is straightforward,” he said.

Speaking on the importance of record-keeping for business growth, he emphasised that entrepreneurs who maintain clear and accurate records will be able to claim tax benefits, access credit facilities, attract investors, and expand into new markets, both locally and internationally.

“One factor links all of this together; records. In today’s economy, data is credibility. Businesses that keep proper records can benefit from tax incentives, win government contracts, access credit, and grow sustainably. Without records, your business will struggle to reach the next level,” he stated.

Oyedele therefore advised graduates to leverage digital tools, including accounting software, payment platforms, and inventory systems, to manage transactions efficiently.

He stressed that entrepreneurial creativity alone is not enough; success requires discipline, management skills, and a clear record of operations.