G-24 Director Iyabo Masha praises Nigeria’s tax reforms, saying they will boost revenue, formalise the economy, and support sustainable development

Iyabo Masha, Director of the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development, has praised Nigeria’s new tax laws, describing them as critical to the country’s transition into a modern and more efficient economy.

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Masha, the first African to hold the position since the G-24 was established over five decades ago, spoke at a press conference in Abuja ahead of the group’s forthcoming meeting. She highlighted tax and domestic resource mobilisation as central pillars of economic development.

“Tax and domestic resource mobilisation are fundamental to economic development,” she said, noting that taxation enables governments to provide infrastructure, education, healthcare and maintain law and order.

According to Masha, while governments typically finance development through taxation, borrowing, or asset sales, taxation remains the most efficient mechanism, producing the least macroeconomic disruption.

She also observed that developing countries often suffer from weak tax mobilisation, in some cases generating revenue as low as seven per cent of GDP, compared to 25 to 30 per cent in other economies.

Speaking specifically on Nigeria, Masha said her previous analysis of the country’s tax framework revealed it was “very fragmented”, with implementation gaps contributing to historically low revenue mobilisation.