By Omoniyi David
Economic experts have warned that Nigeria’s largely informal economy could undermine the effective implementation of the new tax reforms that took effect in January.
The concern was raised at a panel discussion during the 2026 Economic Summit organised by the Empowerment Team of Lagos Province 35 of the Redeemed Christian Church of God (RCCG) in Lagos.
Citing the Moniepoint Informal Economy Report 2025, analysts noted that Nigeria has over 39 million Micro, Small and Medium Enterprises (MSMEs), accounting for about 96 per cent of businesses, contributing roughly 50 per cent of GDP and employing more than 84 per cent of the workforce. Despite this, many operate outside the formal tax net.
Chief Executive Officer of the Centre for the Promotion of Private Enterprises, Dr Muda Yusuf, said the reforms appear elitist and poorly communicated, placing additional burdens on informal operators who may need consultants to comply.
Yusuf also warned of “reform fatigue,” noting that many Nigerians are still adjusting to recent fuel subsidy, foreign exchange and power sector reforms.
Experts urged government to adopt more inclusive strategies and simplify communication to effectively capture the informal sector in the tax reform process.
