In Nigeria, tax reforms have been a central focus for policymakers seeking to expand the tax base, reduce reliance on oil revenue, and improve compliance. However, these reforms have had mixed effects on businesses and individuals, with both positive and negative implications. This study examined the Nigerian tax system and its impact on the growth of Small and Medium Scale Enterprises, especially concerning the extent to which it has created the enabling environment for businesses to thrive. The desktop research approach was adopted in the study. The study concludes that most of the challenges identified as militating against the ease of doing business in Nigeria are not unrelated to the way the Nigerian fiscal tax structure is modeled. Thus, the following recommendations were proffered: the tax base should be re-aligned such that the tiers of government can still get their due revenue without necessarily having multiple tax systems, and taxpayers should be adequately enlightened on their tax rights and responsibilities; that way, corruption and tax evasion will be reasonably ameliorated. 

Key words: Tax reforms, Tax base, Small and Medium Scale Enterprises (SMEs), Fiscal Structure.