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One year after President Bola Ahmed Tinubu signed Nigeria’s landmark tax reform legislation, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has raised concerns over persistent tax compliance challenges and public misconceptions surrounding taxation.
Speaking in Abuja during a courtesy visit by the Chartered Institute of Taxation of Nigeria (CITN) to mark the 2026 National Tax Awareness Day, Oyedele said many Nigerians still view taxation primarily as a government revenue extraction tool rather than a critical instrument for national development.
According to him, one of the biggest obstacles facing Nigeria’s revenue system is not necessarily the need for higher taxes, but ensuring that individuals and businesses already obligated to pay taxes actually comply.
“We are still not generating enough revenue from tax. The challenge is not about increasing tax rates, but ensuring that those who are expected to pay taxes fulfil their obligations. We want to promote fairness in tax administration,” he said.
Tax Compliance Critical to Revenue Growth
Oyedele noted that an efficient tax system could significantly improve public service delivery and accelerate national development.
He stressed that strengthening tax compliance, improving regulatory compliance, and enhancing trust in tax institutions remain essential to Nigeria’s fiscal sustainability.
“If Nigeria gets its tax system right, the level of development will be monumental,” he added.
He also commended CITN for introducing the National Tax Awareness Day and for supporting the Federal Government’s broader tax reform agenda.
Oyedele urged the institute to intensify taxpayer education efforts and proposed the introduction of annual recognition awards for individuals and businesses demonstrating exceptional tax compliance.
The comments reinforce growing calls for stronger compliance management, smarter regulatory reporting, and improved taxpayer engagement strategies to expand Nigeria’s tax base.
Technology Driving Tax Administration Reforms
As part of the National Tax Awareness Day activities, CITN officials also visited the headquarters of the Nigeria Revenue Service (NRS), where they were received by Mohammed Abubakar, Executive Director of Finance and Corporate Services, representing the agency’s Executive Chairman, Zacch Adedeji.
Abubakar described the anniversary as a significant milestone in Nigeria’s evolving tax administration journey.
“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.
According to him, the reforms are designed to build a tax system citizens can trust while increasing the use of digital tools to improve efficiency and service delivery for taxpayers.
The transition toward digitised tax administration reflects broader adoption of RegTech solutions, compliance automation, and regulatory technology innovations aimed at improving transparency and reducing friction in public sector service delivery.
Also speaking at the event, Iniabasi Akpan, Executive Director for Technology and Innovation at NRS, highlighted the agency’s growing investment in technology-enabled tax services.
He cited digital initiatives such as Rev360 and other platforms designed to simplify filing, improve taxpayer experience, and strengthen compliance tracking.
Akpan noted that revenue growth cannot be achieved through enforcement alone.
According to him, public awareness, education, and confidence in government institutions remain central to improving compliance outcomes.
“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.
This underscores the growing importance of compliance software, compliance analytics, and technology-driven systems that make tax processes more accessible and transparent.
CITN Highlights Misconceptions Around Tax Reforms
The President of CITN, Innocent C. Ohagwa, said widespread misunderstanding continues to surround Nigeria’s tax reforms, even one year after implementation.
According to him, many citizens wrongly assume the reforms introduced new taxes across virtually every economic activity, while others believe the policy changes were designed solely to increase government revenue.
“Some people believe the reforms introduced entirely new taxes on every aspect of economic activity. Others assume the reforms were designed solely to increase government revenue without considering the welfare of taxpayers,” he said.
Ohagwa explained that the reforms contain several relief measures aimed at reducing financial pressure on households and businesses.
For individuals, taxpayers can now claim rent relief of up to 20 per cent of annual rent paid, capped at ₦500,000.
He added that essential goods and services—including food, healthcare, education, electricity transmission, and non-oil exports—now benefit from zero-rated Value Added Tax (VAT).
Compensation related to loss of employment or personal injury has also received higher exemption thresholds, offering stronger financial protection for affected individuals.
Small Businesses Receive Major Tax Relief
Ohagwa described the reforms as particularly transformative for small businesses.
Under the new framework, companies with annual turnover not exceeding ₦100 million and fixed assets below ₦250 million are exempt from Companies Income Tax, Capital Gains Tax, and the Development Levy.
He noted that the exemptions could allow thousands of SMEs to reinvest capital into expansion, innovation, and job creation.
The reforms also introduce targeted incentives for sectors such as agriculture, aquaculture, dairy production, cocoa processing, and animal feed manufacturing—industries considered critical to food security and economic diversification.
Despite these incentives, Ohagwa emphasised that taxpayers must also fulfil their responsibilities.
He urged individuals and businesses to obtain Tax Identification Numbers, maintain accurate records, file returns promptly, and comply with tax obligations.
“Compliance is not a burden; it is a civic duty. It is our collective contribution to nation-building. Taxation works best when there is trust—taxpayers must fulfil their obligations, while government must uphold accountability, transparency, and effective resource utilisation,” he said.
As part of the awareness campaign, CITN members also visited Wuse Market in Abuja to sensitise traders and business owners on the benefits and obligations associated with the new tax reforms, while encouraging stronger voluntary compliance.
The outreach reflects a broader push toward building a more inclusive and transparent tax ecosystem where improved education, digital innovation, and stronger regulatory frameworks support sustainable revenue mobilisation.
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