Nigeria’s Finance Minister has called for a fundamental shift in how Nigerians understand taxation, insisting that the country’s revenue shortfall is not a product of low tax rates but of a vast number of eligible citizens and businesses operating entirely outside the tax system.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, made the declaration on Thursday in Abuja while receiving the leadership of the Chartered Institute of Taxation of Nigeria at the Federal Ministry of Finance. The visit followed the Institute’s maiden National Tax Awareness Day, which featured a road walk, a taxpayer sensitisation exercise at Wuse Market and a visit to the headquarters of the Nigerian Revenue Service.
The event coincided with the first anniversary of President Bola Tinubu’s signing of Nigeria’s landmark Tax Reform Acts on June 26, 2025.
Oyedele said a persistent misconception — that any government discussion on taxation is a precursor to higher levies — was undermining public cooperation with the reform agenda. “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,” he said. “We want to promote fairness in tax administration.”
The minister argued that fixing Nigeria’s tax system would yield transformative dividends for national development, and urged the CITN to consider establishing annual awards to publicly recognise the country’s most compliant taxpayers, as a means of incentivising voluntary compliance.
Clearing the Air on the Reforms
Earlier in the day, CITN President Innocent Ohagwa led Institute members to Wuse Market, where traders and entrepreneurs were briefed on the content and implications of Nigeria’s new tax laws — a campaign he said was born out of the need to bridge a widening information gap.
“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,” Ohagwa said.
He noted that anxiety had spread among sections of the public who wrongly believed the reforms introduced new taxes on virtually every form of economic activity. In reality, he said, the legislation contains a range of reliefs and incentives designed to ease the burden on individuals and small businesses.
Under the new framework, individuals can claim rent relief of up to 20 per cent of annual rent paid, subject to a maximum of N500,000. Essential goods and services — including food, education, healthcare, electricity transmission and non-oil exports — now attract zero-rated Value Added Tax treatment. Compensation for loss of employment or personal injury also qualifies for higher tax exemption thresholds.
For businesses, Ohagwa said companies with annual turnover not exceeding N100 million and fixed assets of not more than N250 million are fully 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.
Targeted incentives have also been introduced for agriculture, aquaculture, dairy production, cocoa processing and animal feed manufacturing, while eligible investors may access tax credits under the Economic Development Incentive.
Despite the package of reliefs on offer, Ohagwa was firm that compliance remained a legal and civic obligation. “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 called on traders and business owners to obtain Tax Identification Numbers, maintain accurate records, file returns on time and seek professional guidance where necessary.
NRS Affirms Commitment to Trust-Based Tax Administration
At the Nigerian Revenue Service headquarters, where the CITN delegation paid a formal visit, officials echoed the theme of building public confidence in the tax system.
Speaking on behalf of NRS Executive Chairman Dr Zacch Adedeji, Executive Director of Finance and Corporate Services Mohammed Abubakar described the anniversary of the reform legislation as a landmark moment. “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 argued that enforcement alone could never deliver sustainable revenue mobilisation. “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 NRS also highlighted its ongoing digital transformation agenda, including platforms such as Rev360, aimed at modernising tax administration and improving the experience of taxpayers.
Group Director of the Medium Tax Group, Dr Gbenga Daniel, stressed the importance of the partnership between the NRS and the CITN. “The Nigerian Revenue Service values its longstanding partnership with CITN. Together, our institutions share a common vision of improving tax administration and fostering voluntary compliance for national development,” he said.
In June 2025, President Tinubu signed four major tax reform bills into law — including the Nigeria Tax Act — in a sweeping overhaul of decades-old tax legislation aimed at modernising the country’s fiscal framework and broadening the revenue base.
