Nigeria's Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, declared on Thursday that the nation's revenue challenge stems from expanding the tax net rather than increasing existing tax rates. He stressed that Nigeria requires more taxpayers, not higher taxes.
Oyedele made these remarks in Abuja during a courtesy visit from the leadership of the Chartered Institute of Taxation of Nigeria (CITN) to the Federal Ministry of Finance. This visit followed the Institute’s inaugural National Tax Awareness Day, which included a road walk and taxpayer sensitization at Wuse Market, as well as a visit to the Nigerian Revenue Service headquarters.
The awareness campaign marked one year since President Bola Tinubu signed Nigeria’s landmark Tax Reform Acts into law on June 26, 2025. Oyedele commended the Institute for supporting the Federal Government’s tax reform agenda, noting that public misunderstanding of taxation remains a significant barrier to improving compliance.
According to the Minister, many Nigerians mistakenly believe that government discussions about taxation are solely aimed at collecting more money. He clarified, “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.”
Oyedele added that a well-functioning tax system would have a transformative impact on national development. He also encouraged the CITN to establish annual awards to recognize the country’s most compliant taxpayers, thereby fostering voluntary tax compliance.
Tax Reforms and Incentives
Earlier, the tax awareness campaign commenced at Wuse Market, where the 17th President of the Chartered Institute of Taxation of Nigeria, Innocent Ohagwa, explained that the initiative aimed to bridge the information gap surrounding the country’s tax reforms and enhance voluntary compliance. He noted that despite the reforms being in force for one year, many Nigerians remained uncertain about the changes and their implications for businesses and individuals.
Ohagwa stated, “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 highlighted that widespread misconceptions continued to fuel anxiety, with some believing the reforms introduced new taxes across all economic activities, while others assumed they were solely designed to raise government revenue.
However, Ohagwa clarified that the reforms include significant reliefs and incentives for both individuals and businesses. For individuals, rent relief of up to 20 per cent of annual rent paid can now be claimed, subject to a maximum of N500,000. Additionally, essential goods and services, including food, education, healthcare, electricity transmission, and non-oil exports, now benefit from zero-rated Value Added Tax treatment. Compensation for loss of employment or personal injury also attracts higher tax exemption thresholds.
For businesses, companies with an 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. Ohagwa emphasized, “This means thousands of small businesses can now reinvest in growth, job creation, and innovation.”
He further added that targeted tax incentives have been introduced for agriculture, aquaculture, dairy production, cocoa processing, and animal feed manufacturing. Eligible investors can also benefit from tax credits under the Economic Development Incentive.
Compliance and Collaboration
Despite these incentives, the CITN president reminded taxpayers that compliance remains a legal obligation. He stated, “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.”
Ohagwa urged traders, entrepreneurs, and business owners to obtain Tax Identification Numbers, maintain proper records, file accurate returns on time, and seek professional guidance from the Nigerian Revenue Service (NRS), the FCT Internal Revenue Service, or members of the Institute when necessary. He explained that Wuse Market was chosen for the campaign as a key grassroots commercial hub where taxpayer education was most needed, and June coincided with the peak filing period for many corporate taxpayers.
Following the market sensitization, the CITN delegation visited the headquarters of the Nigerian Revenue Service, where both organizations reaffirmed their commitment to strengthening tax awareness, voluntary compliance, and the implementation of Nigeria’s tax reforms. Mohammed Abubakar, Executive Director, Finance and Corporate Services, received the delegation on behalf of the Executive Chairman of the NRS, Dr. Zacch Adedeji.
Abubakar described the occasion as significant, marking one year since the signing of the country’s landmark tax reform legislation. He stated, “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 added that the reforms aim to build a tax administration system that is trusted, technology-driven, and responsive to the needs of taxpayers and businesses, noting that sustainable revenue mobilization depends on public awareness and confidence in tax institutions.
The visit also highlighted the Service’s digital transformation agenda, with officials pointing to initiatives such as Rev360 and other technology-driven platforms for more efficient tax administration. Dr. Gbenga Daniel, Group Director, Medium Tax Group, also spoke, affirming that the NRS would continue collaborating with professional bodies to deepen taxpayer education and improve service delivery. He concluded, “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.”
