Taiwo Oyedele - RainSMedia360

ABUJA, Nigeria — The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said Nigeria's revenue challenge is not the need to raise tax rates but to broaden the country's tax base by bringing more eligible taxpayers into the system. Oyedele made the remarks on Thursday while receiving the leadership of the Chartered Institute of Taxation of Nigeria (CITN) during a courtesy visit to the Federal Ministry of Finance in Abuja. The visit marked the conclusion of the Institute's maiden National Tax Awareness Day, which featured a road walk, taxpayer sensitisation at Wuse Market, and a visit to the headquarters of the Nigerian Revenue Service (NRS). The campaign also coincided with the first anniversary of President Bola Tinubu signing Nigeria's landmark Tax Reform Acts into law on June 26, 2025. Expand the Tax Base, Not Tax Rates Commending the CITN for supporting the Federal Government's tax reform agenda, Oyedele said public misconceptions about taxation remain one of the biggest barriers to improving compliance. According to him, many Nigerians mistakenly believe that government tax reforms are aimed solely at collecting more revenue from citizens. "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 said. The minister said an efficient and equitable tax system would significantly accelerate Nigeria's economic development and urged the Institute to establish annual awards recognising the country's most compliant taxpayers to encourage voluntary compliance. CITN Seeks to Bridge Knowledge Gap on Tax Reforms Earlier, speaking during the taxpayer sensitisation campaign at Wuse Market, the 17th President of the Chartered Institute of Taxation of Nigeria, Innocent Ohagwa, said the initiative was introduced to bridge the information gap surrounding Nigeria's tax reforms and improve voluntary tax compliance. He noted that although the reforms have been in force for one year, many Nigerians still lack a clear understanding of the new tax laws and their implications for individuals and businesses. "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 explained that misconceptions about the reforms have fuelled unnecessary concerns, with some believing they introduced new taxes across all sectors of the economy or were designed solely to increase government revenue. Tax Reforms Introduce Reliefs for Individuals, Businesses According to Ohagwa, the reforms provide several reliefs and incentives for taxpayers. He said individuals can now claim rent relief of up to 20 per cent of annual rent paid, subject to a maximum of ₦500,000, while essential goods and services—including food, education, healthcare, electricity transmission and non-oil exports—are now zero-rated for Value Added Tax. He added that tax exemption thresholds for compensation arising from job loss or personal injury have also been increased. For businesses, Ohagwa said companies with annual turnover of not more than ₦100 million and fixed assets not exceeding ₦250 million are 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," he said. The CITN president added that targeted tax incentives have also been introduced for agriculture, aquaculture, dairy production, cocoa processing and animal feed manufacturing, while eligible investors can benefit from tax credits under the Economic Development Incentive. Despite the incentives, Ohagwa reminded taxpayers that compliance remains a legal obligation. "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 the government must uphold accountability, transparency and the effective use of public resources," he said. He urged traders, entrepreneurs and business owners to obtain Tax Identification Numbers (TINs), maintain proper financial records, file accurate tax returns on time and seek professional guidance from the Nigerian Revenue Service, the FCT Internal Revenue Service or members of the Institute whenever necessary. Nigerian Revenue Service Reaffirms Commitment Following the market sensitisation exercise, the CITN delegation visited the headquarters of the Nigerian Revenue Service, where both organisations reaffirmed their commitment to strengthening tax awareness, voluntary compliance and the implementation of Nigeria's tax reforms. Receiving the delegation on behalf of the Executive Chairman of the NRS, Dr Zacch Adedeji, the Executive Director of Finance and Corporate Services, Mohammed Abubakar, described the occasion as significant because it marked one year since the enactment of Nigeria's landmark tax reform legislation. "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 added that the reforms are designed to build a tax administration system that is trusted, technology-driven and responsive to the needs of taxpayers and businesses. According to him, sustainable revenue mobilisation depends not only on enforcement but also on public awareness and confidence in tax institutions. "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. Abubakar also highlighted the Service's digital transformation initiatives, including the Rev360 platform and other technology-driven solutions aimed at improving tax administration and service delivery. Also speaking, the Group Director of the Medium Tax Group at the NRS, Dr Gbenga Daniel, reaffirmed the agency's commitment to collaborating with professional bodies to deepen taxpayer education and improve compliance. "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 event brought together Executive Directors of the Nigerian Revenue Service, members of the CITN Governing Council, senior management staff, tax professionals and industry stakeholders before the delegation proceeded to the Federal Ministry of Finance for the courtesy visit. President Bola Tinubu signed four major tax reform bills into law in June 2025, including the Nigeria Tax Act and related legislation aimed at modernising the country's tax system and replacing decades-old tax laws. Also Read: Mohamed Salah Reacts After Inspiring Egypt to Historic First-Ever World Cup Victory

Advertisement

Advertisement

All posts tagged in Taiwo Oyedele

Advertisement

Advertisement

Get new posts by email:

Stay Informed With the Latest & Most Important News

Advertisement

Advertisement