The Minister of Finace noted that fixing Nigeria’s tax system would have far-reaching implications for economic growth, infrastructure development, and public service delivery.
KaNo —
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said Nigeria’s persistent revenue challenge can only be addressed by expanding the tax base rather than increasing tax rates, stressing that the country needs more taxpayers instead of higher taxes.
Oyedele made this known on Thursday in Abuja while receiving the leadership of the Chartered Institute of Taxation of Nigeria during a courtesy visit to the Federal Ministry of Finance.
The visit marked the conclusion of the Institute’s maiden National Tax Awareness Day, which featured a road walk, taxpayer sensitisation at Wuse Market, and a visit to the headquarters of the Nigerian Revenue Service.
Commending the Institute for aligning with the Federal Government’s tax reform agenda, Oyedele identified widespread public misunderstanding of taxation as a major barrier to improved compliance.
According to him, many Nigerians still perceive government tax initiatives as attempts to impose additional financial burdens rather than efforts to promote fairness and national development.
“We are still not getting enough revenue from taxes; it is not about increasing taxes, but making sure that those who are supposed to pay taxes actually do so. We want to promote fairness in tax administration,” the minister said.
He noted that fixing Nigeria’s tax system would have far-reaching implications for economic growth, infrastructure development, and public service delivery.
Oyedele also proposed the introduction of annual awards to recognise the country’s most compliant taxpayers, saying such incentives could encourage voluntary compliance and foster a culture of accountability.
Innocent Ohagwa, explained that the initiative was designed to bridge the information gap surrounding the country’s tax reforms.
Ohagwa observed that although the reforms had been in place for a year, many Nigerians remained uncertain about their implications for businesses and individuals.
“The laws have been signed, implementation has begun, yet many taxpayers and stakeholders are still grappling with what has changed, what remains the same, and how these provisions affect their businesses and personal affairs,” he said.
He added that misconceptions about the reforms had fueled anxiety among citizens, with some believing that the new laws introduced additional taxes across all sectors, while others assumed they were solely aimed at boosting government revenue.
“Among the key benefits highlighted, individuals can now claim rent relief of up to 20 per cent of annual rent paid, subject to a maximum of N500,000. In addition, essential goods and services such as food, education, healthcare, electricity transmission, and non-oil exports have been granted zero-rated Value Added Tax status” he stated
He further noted that compensation for loss of employment or personal injury now attracts higher tax exemption thresholds, providing additional financial protection for affected individuals.
For businesses, particularly small and medium enterprises, the reforms introduce substantial exemptions.
Companies with an annual turnover not exceeding N100 million and fixed assets of not more than N250 million are now exempt from Companies Income Tax, Capital Gains Tax, and the Development Levy.
“This means thousands of small businesses can now reinvest in growth, job creation, and innovation,” Ohagwa said.
He also pointed to targeted tax incentives for key sectors, including agriculture, aquaculture, dairy production, cocoa processing, and animal feed manufacturing.
Despite the incentives, Ohagwa emphasised that tax compliance remains a legal obligation for all eligible Nigerians.
“Compliance is not a burden; it is a civic duty. It is our collective contribution to nation-building. Taxation works best when there is trust,taxpayers must fulfil their obligations, while the government must uphold accountability, transparency, and the effective use of public resources,” he stated.
He urged traders, entrepreneurs, and business owners to obtain Tax Identification Numbers, maintain proper financial records, file accurate returns promptly, and seek professional guidance when necessary from relevant authorities or certified tax practitioners.
He noted that Wuse Market was deliberately selected as the starting point for the campaign due to its status as a major grassroots commercial centre where taxpayer education is most needed.
The timing of the campaign in June, he added, aligns with the peak filing period for many corporate taxpayers, making it strategic for outreach efforts.
Following the market sensitisation exercise, the Institute’s delegation proceeded to the headquarters of the Nigerian Revenue Service, where both organisations reaffirmed their commitment to strengthening tax awareness, voluntary compliance, and the effective implementation of Nigeria’s tax reforms.
Receiving the delegation on behalf of the Executive Chairman of the Service, Dr Zacch Adedeji, the Executive Director of Finance and Corporate Services, Mohammed Abubakar, described the occasion as significant, noting that it marked one year since the enactment of the country’s landmark tax reform legislation.
“That historic milestone signalled the beginning of a new era in Nigeria’s tax administration, one anchored on simplicity, fairness, transparency, efficiency, and service delivery,” he said.
Abubakar explained that the reforms are designed to build a tax system that is trusted, technology-driven, and responsive to the needs of taxpayers and businesses.
He stressed that sustainable revenue mobilisation depends not only on enforcement but also on public awareness and confidence in tax institutions.
“Taxpayers are more likely to comply when they understand their obligations, appreciate the value of taxation, and have confidence in the institutions administering our tax laws,” he added.
The visit also highlighted the Service’s ongoing digital transformation agenda, with officials pointing to initiatives such as Rev360 and other technology-driven platforms aimed at improving efficiency, transparency, and ease of compliance within Nigeria’s tax system.
Stakeholders at the event agreed that sustained public education, combined with transparent governance and efficient service delivery, would be critical in achieving the objectives of the tax reforms and ensuring long-term economic stability.
