Finance Minister Taiwo Oyedele has clarified that Nigeria's economic growth depends on bringing more eligible citizens into the tax bracket, not raising tax rates. Speaking on Thursday while receiving a delegation from the Chartered Institute of Taxation of Nigeria (CITN) in Abuja, Oyedele explained that the government's tax reform agenda is aimed at ensuring more eligible individuals and businesses pay taxes, instead of placing additional tax burdens on those already complying.
Expanding the tax net, not increasing taxes
Oyedele said the Federal Government's priority is to broaden Nigeria's tax base by bringing more eligible taxpayers into the system, rather than raising tax rates. He urged the CITN to step up public awareness campaigns, noting that many Nigerians still misunderstand the purpose of taxation. "It is not about increasing taxes but making sure that those who are supposed to pay taxes. We want to promote fairness in tax administration," he said.
The minister praised the CITN for introducing a National Tax Awareness Day and for supporting the Federal Government's ongoing tax reforms, describing public education as critical to changing how Nigerians view taxation. According to him, many people still see taxes as simply a way for government to collect money from citizens, rather than a tool for funding national development.
Challenges in tax revenue generation
Oyedele noted that Nigeria continues to face challenges in generating enough tax revenue despite several reforms over the years. He said a large number of eligible taxpayers remain outside the tax net, limiting the government's ability to raise funds needed for infrastructure, healthcare, education and other public services. "We are still not getting enough revenue from taxes," he said.
He stressed that the country's challenge is not necessarily about raising tax rates but ensuring that everyone who should pay taxes does so under a system that is fair, transparent and efficient. The minister also urged the CITN to intensify public enlightenment campaigns to correct misconceptions about taxation and improve voluntary compliance.
Transformative impact of an efficient tax system
According to Oyedele, building a more effective tax system would significantly improve the country's economic development and the delivery of public services. "If Nigeria succeeds in building an efficient and equitable tax system, the impact on infrastructure, public services and economic development would be transformative," he said.
Oyedele further challenged the institute to establish annual awards recognising Nigeria's most tax-compliant individuals and organisations, saying such recognition could encourage more voluntary tax compliance across the country. The Federal Government has repeatedly maintained that its current tax reform agenda is designed to simplify Nigeria's tax system, reduce multiple taxation, widen the tax net and improve tax administration, rather than increase tax rates for compliant citizens and businesses.
