Nigeria needs more taxpayers, not higher taxes – Oyedele

Nigeria's revenue challenges lie in expanding its tax net rather than increasing tax rates, according to Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy. Speaking in Abuja, Oyedele stressed that the nation requires more taxpayers, not higher taxes, to bolster its finances.

During a courtesy visit from the Chartered Institute of Taxation of Nigeria, Oyedele commended the institute's support for the government's tax reform agenda. He identified public misunderstanding of taxation as a major hurdle to improved compliance, noting that many Nigerians perceive tax discussions solely as government efforts to collect more money. "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 pay. We want to promote fairness in tax administration," he stated, adding that a correct tax system would significantly impact national development.

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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 pay. We want to promote fairness in tax administration.

The minister also urged the Institute to establish annual awards recognizing compliant taxpayers to encourage voluntary compliance. Earlier, Innocent Ohagwa, President of the Chartered Institute of Taxation of Nigeria, explained that their tax awareness campaign aimed to bridge the information gap about recent reforms. He noted that despite the reforms being in effect for a year, many remain uncertain about the changes. Ohagwa clarified that the reforms include significant reliefs and incentives, such as rent relief for individuals and zero-rated VAT treatment for essential goods and services.

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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.