Federal Government Moves to Dismantle 60-Agency Tax Bottleneck Hindering Nigeria’s Digital Economy Growth
Story: Reported by Okafor Joseph and Rita Uzuh for SpringnewsNG Media Limited.
Abuja, Nigeria – July 31, 2025: The Federal Government of Nigeria has announced plans to streamline the country’s complex multi-agency tax system, which currently involves more than 60 regulatory bodies and is widely blamed for stifling digital innovation and business growth.
Government officials disclosed that the decision is part of a comprehensive fiscal reform agenda aimed at boosting Nigeria’s digital economy, attracting foreign investment, and creating a more business-friendly environment for startups and technology companies.
For years, tech firms and digital service providers have faced overlapping tax demands from multiple agencies, ranging from the Federal Inland Revenue Service (FIRS) to state revenue boards and various industry regulators. This multi-layered tax framework has resulted in increased operational costs, regulatory uncertainty, and slowed digital transformation.
“We recognize that excessive taxation and fragmented regulation are limiting Nigeria’s potential to become a leading digital hub in Africa,” a senior government official said. “Our objective is to collapse redundant tax structures and provide clarity for businesses operating in the tech and digital sectors.”
Boost for Startups and Tech Investors
Industry experts say that simplifying Nigeria’s tax framework will help local startups scale faster, reduce the cost of doing business, and attract global technology investors who have previously been deterred by regulatory complexity.
Nigeria’s digital economy, which includes fintech, e-commerce, mobile banking, and data services, is projected to contribute over 20% to GDP by 2030 if regulatory barriers are reduced, according to market analysts.
The proposed tax harmonization plan will also align with President Bola Tinubu’s economic diversification strategy, which prioritizes technology, innovation, and private-sector-led growth.
Upon implementation, the move is expected to:
- Eliminate overlapping tax demands from multiple agencies
- Reduce compliance burdens for digital and tech companies
- Create a predictable environment for foreign and local investors
- Accelerate digital transformation in key sectors like fintech, e-commerce, and logistics
The Federal Government has assured stakeholders that engagements with industry leaders and state governments are ongoing to ensure a smooth transition to a simplified tax structure.
If successfully implemented, the policy could unlock billions in investments, drive job creation in the tech sector, and position Nigeria as a leading digital economy in Africa.
