The Minister of Finance and Coordinating Minister of the Economy, Taiwo
Oyedele, says Nigeria’s revenue challenge lies in expanding the tax net rather
than increasing tax rates, stressing that the country needs more taxpayers, not
higher taxes.
Oyedele spoke in Abuja while receiving the leadership of the Chartered Institute
of Taxation of Nigeria during a courtesy visit to the Federal Ministry of Finance
at the end of the Institute’s maiden National Tax Awareness Day, which
featured a road walk and taxpayer sensitisation at Wuse Market as well as a visit
to the headquarters of the Nigerian Revenue Service.
The awareness campaign coincided with one year since President Bola Tinubu
signed Nigeria’s landmark Tax Reform Acts into law on June 26, 2025.
Commending the Institute for supporting the Federal Government’s tax reform
agenda, Oyedele said public misunderstanding of taxation remained one of the
biggest obstacles to improving compliance. According to him, many Nigerians
still believe that whenever the government talks about taxation, it is simply
seeking to collect more money from citizens.
“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 said.
The minister added that getting Nigeria’s tax system right would have a
transformative impact on national development. He also urged the Institute to
establish annual awards to recognise the country’s most compliant taxpayers as
a way of encouraging voluntary tax compliance.
Earlier, the tax awareness campaign commenced at Wuse Market, where the
17th President of the Chartered Institute of Taxation of Nigeria, Innocent
Ohagwa, said the initiative was introduced to bridge the information gap
surrounding the country’s tax reforms and improve voluntary compliance.
He explained that although the reforms had been in force for one year, many
Nigerians were still uncertain about the changes and how they would affect
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.
According to Ohagwa, widespread misconceptions have continued to fuel
anxiety, with some people believing the reforms introduced new taxes across all
aspects of economic activity, while others assume they were designed solely to
raise government revenue.
He, however, said the reforms contain significant reliefs and incentives for both
individuals and businesses. Among the benefits, he said, individuals can now
claim rent relief of up to 20 per cent of annual rent paid, subject to a maximum
of N500,000, while essential goods and services, including food, education,
healthcare, electricity transmission, and non-oil exports, now enjoy zero-rated
Value Added Tax treatment.
He added that compensation for loss of employment or personal injury now
attracts higher tax exemption thresholds. For businesses, Ohagwa said
companies with annual turnover not exceeding N100m and fixed assets of not
more than N250m are 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,” he said.
He added that targeted tax incentives had also been introduced for agriculture,
aquaculture, dairy production, cocoa processing, and animal feed
manufacturing, while eligible investors could benefit from tax credits under the
Economic Development Incentive.
“Compliance is not a burden; it is a civic duty. It is our collective contribution
to nation-building. And 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 said.
He urged traders, entrepreneurs, and business owners to obtain Tax
Identification Numbers, keep proper records, file accurate returns on time, and
seek professional guidance from the Nigerian Revenue Service, the FCT
Internal Revenue Service, or members of the Institute whenever necessary.
Explaining the rationale for the awareness campaign, Ohagwa said the Institute
approved an annual National Tax Awareness Day after observing that many
Nigerians remained uninformed about the reforms despite ongoing sensitisation.
He said Wuse Market was deliberately chosen because it represented one of the
country’s key grassroots commercial hubs where taxpayer education was most
needed, adding that the campaign was held in June because it coincides with the
peak filing period for many corporate taxpayers.
After the market sensitisation, the CITN delegation proceeded to the
headquarters of the Nigerian Revenue Service, where both organisations
reaffirmed their commitment to strengthening tax awareness, voluntary
compliance, and the implementation of Nigeria’s tax reforms.
Receiving the delegation on behalf of the Executive Chairman of the NRS, Dr
Zacch Adedeji, the Executive Director, Finance and Corporate Services,
Mohammed Abubakar, described the occasion as significant because it marked
one year since the signing 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.
According to Abubakar, the reforms are intended to build a tax administration
system that is trusted, technology-driven, and responsive to the needs of
taxpayers and businesses.
He added 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 said.
The visit also highlighted the Service’s digital transformation agenda, with
officials pointing to initiatives such as Rev360 and other technology-driven
platforms aimed at delivering more efficient tax administration.