The Federal Government says it has no plans to raise taxes but will expand Nigeria’s tax base by ensuring more eligible citizens and businesses meet their tax obligations.
FG Rules Out Tax Increase, Plans to Expand Nigeria’s Tax Base
The Federal Government has reaffirmed that it is not considering an increase in tax rates, emphasizing instead that its priority is to bring more eligible individuals and businesses into the nation’s tax system.
The assurance was given by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during a meeting with officials of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja.
Government Prioritizes More Taxpayers Over Higher Taxes
According to the minister, Nigeria’s challenge is not the need for higher taxes but the need to improve tax compliance and broaden the number of people and organizations fulfilling their legal tax obligations.
He explained that increasing the tax base would generate more revenue for national development while promoting fairness across the country’s tax system.
“We are still not generating enough revenue from taxation. The goal is not to impose higher taxes but to ensure that everyone who is legally required to pay taxes does so,” Oyedele stated.
Public Awareness Remains a Key Focus
Oyedele commended the Chartered Institute of Taxation of Nigeria (CITN) for launching a National Tax Awareness Day, describing the initiative as an important step toward improving tax education across the country.
He encouraged the institute to strengthen its public awareness campaigns, noting that many Nigerians still view taxation primarily as a government revenue collection tool rather than a civic responsibility that supports national development.
According to him, better public understanding of taxation will encourage voluntary compliance and improve confidence in the country’s tax administration.
Tax Reforms Aim to Improve Fairness
The minister reiterated that the Federal Government’s ongoing tax reform agenda is designed to create a more transparent, equitable, and efficient tax system.
Rather than introducing additional tax burdens, the reforms seek to ensure that all eligible taxpayers contribute fairly while improving revenue generation through wider participation.
Why the Tax Base Matters
Expanding the tax base means increasing the number of individuals and businesses that pay taxes legally owed to the government. Experts believe this approach can:
- Improve government revenue without raising tax rates.
- Promote fairness by reducing tax evasion.
- Support funding for infrastructure and public services.
- Encourage a more sustainable economy.
What This Means for Nigerians
The latest clarification indicates that Nigerians should not expect an immediate increase in tax rates. Instead, government agencies are expected to focus on identifying more eligible taxpayers, improving compliance, and strengthening tax administration nationwide.
The policy aligns with the Federal Government’s broader economic reform strategy aimed at increasing revenue while maintaining a balanced tax environment.
Frequently Asked Questions (FAQs)
Is the Federal Government increasing taxes?
No. The government has stated that there are currently no plans to raise tax rates.
What is the government’s new focus?
The priority is to expand Nigeria’s tax base by ensuring more eligible individuals and businesses pay their taxes.
Why does Nigeria want to expand its tax base?
A broader tax base can increase government revenue, improve fairness, and reduce reliance on raising tax rates.
Who made the announcement?
The clarification was made by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.