Nigeria’s Tax Reform at One Year: Oyedele Says Focus Is Widening Net, Not Raising Rates

Finance minister tells CITN that compliance, not higher taxes, will fix revenue shortfalls

Abuja – Nigeria’s revenue problem will be solved by getting more people to pay tax, not by asking current taxpayers to pay more, Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said Thursday in Abuja.

Oyedele spoke while receiving the leadership of the Chartered Institute of Taxation of Nigeria at the Federal Ministry of Finance, at the end of the Institute’s first National Tax Awareness Day. The event included a road walk and taxpayer sensitisation at Wuse Market, followed by a visit to the Nigerian Revenue Service headquarters.

The awareness campaign marked one year since President Bola Tinubu signed Nigeria’s Tax Reform Acts into law on June 26, 2025.

Commending CITN for backing the Federal Government’s reform agenda, Oyedele said public misunderstanding remains the biggest barrier to compliance. Many Nigerians, he noted, still assume that any talk of taxation means government wants to collect more money from them.

“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,” Oyedele said. “We want to promote fairness in tax administration.”

He added that getting the tax system right would be transformative for national development. To encourage voluntary compliance, he urged CITN to institute annual awards recognising the country’s most compliant taxpayers.

Earlier at Wuse Market, CITN’s 17th President, Innocent Ohagwa, said the awareness day was created to close the information gap around the reforms and lift voluntary compliance. Despite being in force for a year, he explained, many Nigerians remain unclear on what changed and how the new rules 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,” Ohagwa said.

He noted that misconceptions persist. Some believe the reforms introduced new taxes on all economic activity, while others think the goal was simply to raise government revenue. In reality, the Acts contain major reliefs and incentives.

For individuals, the reforms provide rent relief of up to 20% of annual rent paid, capped at N500,000. Essential goods and services — including food, education, healthcare, electricity transmission, and non-oil exports — now attract zero-rated Value Added Tax. Thresholds for tax-free compensation on job loss or personal injury have also been raised.

For businesses, companies with annual turnover not exceeding N100m and fixed assets of not more than N250m are now 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,” Ohagwa said.

The reforms also introduced targeted incentives for agriculture, aquaculture, dairy production, cocoa processing, and animal feed manufacturing. Eligible investors can access tax credits under the Economic Development Incentive.

Even with the incentives, Ohagwa stressed that compliance is still a legal 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 advised traders, entrepreneurs, and business owners to obtain Tax Identification Numbers, maintain proper records, file accurate returns on time, and seek guidance from the Nigerian Revenue Service, the FCT Internal Revenue Service, or CITN members when needed.

Ohagwa said the Institute approved an annual National Tax Awareness Day after finding that many Nigerians remained uninformed despite ongoing sensitisation. Wuse Market was chosen because it is a major grassroots commercial hub where taxpayer education is critical. June was selected to coincide with the peak filing period for many corporate taxpayers.

From the market, the CITN delegation moved to NRS headquarters, where both bodies reaffirmed their commitment to boosting tax awareness, voluntary compliance, and reform implementation.

Speaking for NRS Executive Chairman Dr Zacch Adedeji, Executive Director for Finance and Corporate Services, Mohammed Abubakar, called the visit significant because it marked one year since the landmark tax legislation was signed.

“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,” Abubakar said.

He said the reforms aim to build a tax system that is trusted, technology-driven, and responsive to taxpayers and businesses. Sustainable revenue, he added, depends on public awareness and confidence, not just enforcement. “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.

NRS officials also highlighted digital transformation efforts, including Rev360 and other tech platforms designed to improve efficiency.

Group Director, Medium Tax Group, Dr Gbenga Daniel, said NRS will keep working with professional bodies to deepen taxpayer education and service delivery. “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.

The reception drew NRS Executive Directors, CITN Governing Council members, senior management, tax professionals, and industry stakeholders before the delegation proceeded to the Finance Ministry.

In June 2025, President Bola Tinubu signed four tax reform bills into law, including the Nigeria Tax Act. Together, the statutes overhaul decades-old tax laws and modernise the country’s tax system.