The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said Nigeria’s biggest tax challenge is not increasing tax rates but expanding the number of people and businesses that pay taxes.
Oyedele made the remarks in Abuja while receiving officials of the Chartered Institute of Taxation of Nigeria (CITN) during a courtesy visit marking the institute’s maiden National Tax Awareness Day.
According to the minister, many Nigerians wrongly assume that every government tax reform is aimed at collecting more money from citizens, when the real objective is to ensure fairness and improve compliance.
“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,” Oyedele said.
He noted that expanding the tax net would boost government revenue without placing additional financial pressure on existing taxpayers.
The minister also encouraged the CITN to introduce annual awards to recognise Nigeria’s most compliant taxpayers as a way of promoting voluntary tax compliance.
Tax Reforms Offer Relief For Individuals, Businesses
Earlier, the President of the Chartered Institute of Taxation of Nigeria (CITN), Innocent Ohagwa, said the awareness campaign was organised to educate Nigerians about the country’s tax reforms, one year after President Bola Tinubu signed the landmark Tax Reform Acts into law.
According to him, many Nigerians still misunderstand the reforms, with some believing they introduced new taxes across all sectors.
He explained that the reforms actually include several incentives, such as tax relief for individuals and exemptions for many small businesses.
Among the benefits highlighted are rent relief of up to 20 percent, zero-rated VAT on essential goods and services including food, healthcare and education, as well as tax exemptions for eligible small businesses with qualifying annual turnover and assets.
Ohagwa stressed that while the reforms provide incentives, taxpayers still have a legal obligation to comply with tax laws.
“Compliance is not a burden; it is a civic duty. Taxation works best when taxpayers fulfil their obligations and government remains accountable and transparent,” he said.
He urged business owners to obtain Tax Identification Numbers (TINs), keep proper financial records and file their tax returns on time.
NRS Reaffirms Commitment To Tax Reforms
Officials of the Nigerian Revenue Service (NRS) also reaffirmed their commitment to implementing the tax reforms through improved technology and better taxpayer services.
Representing the Executive Chairman of the NRS, Mohammed Abubakar said the reforms were designed to build a simpler, fairer and more transparent tax administration system that encourages voluntary compliance.
He added that technology-driven platforms such as Rev360 would help improve service delivery and strengthen public confidence in the country’s tax system.
Source: Federal Ministry of Finance / Chartered Institute of Taxation of Nigeria (CITN)
