Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has cautioned governments against introducing new taxes or increasing existing tax burdens, particularly on low-income households and productive sectors of the economy.
Oyedele gave the warning during the 2026 annual meetings of the International Monetary Fund (IMF) and World Bank in Bangkok, Thailand, where he presented a communiqué on behalf of the Intergovernmental Group of Twenty-Four (G24).
Speaking as chairman of the G24, the minister emphasised the need for governments to strengthen revenue mobilisation without worsening the financial difficulties facing vulnerable citizens and businesses.
“This is the wrong time to impose new taxes or increase the burden of tax, particularly on the vulnerable population and productive sectors of the economy,” Oyedele said.
Oyedele Urges Governments to Reduce Waste and Improve Revenue
Addressing concerns about rising debt-servicing costs in developing economies, Oyedele encouraged governments to identify opportunities for savings and improve the efficiency of existing revenue systems.
He explained that developing countries must find ways to finance essential public services while avoiding policies that place further pressure on households and businesses.
The finance minister also stressed that taxation and borrowing should not be treated as competing solutions to fiscal challenges.
According to him, both approaches require careful consideration because taxes affect people’s present spending power, while government borrowing can create financial obligations for future generations.
Borrowing Should Support Jobs and Economic Growth
Oyedele maintained that government borrowing remains an important source of financing for developing economies, provided the funds are directed towards investments that generate employment and support inclusive economic growth.
He advocated prioritising public resources for essential sectors, including healthcare and education, while encouraging greater private-sector participation in other investment areas.
His remarks came amid discussions about the rising cost of debt and the difficulty developing countries face in maintaining public spending without increasing financial pressure on their populations.
G24 Calls for Stronger Financial Support for Developing Countries
Beyond domestic revenue mobilisation, the G24 has called for improved access to affordable financing from international financial institutions.
The group highlighted the challenges developing economies face as they contend with elevated borrowing costs, fiscal pressures and global economic uncertainty.
Oyedele’s comments underscore the importance of balancing government revenue requirements with household welfare, business activity and long-term economic development.
His remarks were directed at governments broadly and should not be interpreted as an announcement that Nigeria has suspended or cancelled existing taxes.
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