Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said the country’s major tax challenge is not low tax rates but the limited number of people and businesses paying taxes. According to him, the government is focused on expanding the tax base instead of increasing tax rates.
Oyedele made the remarks on Thursday in Abuja while receiving members of the Chartered Institute of Taxation of Nigeria (CITN) during a courtesy visit to the Federal Ministry of Finance.
The visit marked the end of the Institute’s first-ever National Tax Awareness Day, which included a road walk, taxpayer education at Wuse Market, and a visit to the headquarters of the Nigerian Revenue Service (NRS).
The event also coincided with one year since President Bola Tinubu signed Nigeria’s major Tax Reform Acts into law on June 26, 2025.
Speaking during the event, Oyedele praised CITN for supporting the Federal Government’s tax reform programme. He said many Nigerians still misunderstand the purpose of taxation, believing that every government tax reform is simply an attempt to collect more money from citizens.
According to him, this misconception has made it more difficult to improve tax compliance across the country.
The minister stressed that Nigeria’s tax system should be based on fairness, ensuring that everyone who is legally required to pay taxes contributes their fair share.
He explained that the country’s revenue can grow significantly if more eligible individuals and businesses join the tax system rather than placing heavier tax burdens on those already paying.
Oyedele also noted that an effective tax system would help improve national development by providing government with more resources to fund infrastructure, education, healthcare, and other public services.
To encourage voluntary compliance, he suggested that CITN should introduce annual awards to recognize Nigeria’s most compliant taxpayers.
Earlier, the President of CITN, Innocent Ohagwa, said the National Tax Awareness Day was introduced to educate Nigerians about the country’s new tax laws and reduce confusion surrounding the reforms.
According to him, although the reforms have been in effect for one year, many taxpayers still do not fully understand the changes or how they affect businesses and individuals.
He explained that false information has created unnecessary fears, with some people believing the reforms introduced new taxes across every sector of the economy. Others, he said, wrongly assume the changes were designed only to increase government revenue.
Ohagwa clarified that the reforms also include several tax reliefs and incentives.
He said individuals can now enjoy rent relief of up to 20 percent of annual rent paid, subject to a maximum of ₦500,000.
He added that essential goods and services such as food, education, healthcare, electricity transmission, and non-oil exports now attract zero-rated Value Added Tax (VAT).
For businesses, he explained that companies with an annual turnover of ₦100 million or less and fixed assets not exceeding ₦250 million are exempt from Companies Income Tax, Capital Gains Tax, and the Development Levy.
According to him, these incentives are designed to help small businesses expand, create more jobs, and invest in innovation.
He also highlighted special tax incentives for agriculture, dairy production, aquaculture, cocoa processing, and animal feed manufacturing.
Despite these benefits, Ohagwa reminded Nigerians that paying taxes remains a legal and civic responsibility. He urged business owners to register for Tax Identification Numbers (TIN), maintain proper financial records, file tax returns on time, and seek professional guidance whenever necessary.
Officials of the Nigerian Revenue Service also reaffirmed their commitment to improving tax administration through digital platforms and stronger collaboration with professional bodies to increase public awareness and voluntary compliance.
The government believes that broadening the tax net, improving transparency, and simplifying tax administration will help build a stronger economy without placing additional tax burdens on compliant citizens.
