The challenge of weak tax revenue collection remains a central concern for Nigeria’s economic management, according to the country’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
Speaking in Abuja during a meeting with the leadership of the Chartered Institute of Taxation of Nigeria, Oyedele stressed that Nigeria’s fiscal issue is not primarily about raising tax rates, but about improving compliance and ensuring fairness within the system.
“We are still not getting enough revenue from tax,” he said, emphasizing that the real problem lies in enforcement and accountability rather than higher taxation.
Focus Shifts From Tax Increases to Compliance Reform
Oyedele argued that a more efficient tax system depends on closing compliance gaps among individuals and businesses obligated to contribute. He maintained that strengthening transparency and fairness in tax administration would significantly improve revenue performance without burdening citizens with additional tax increases.
“It is not about increasing tax, but making sure that those who are supposed to pay tax pay,” he said. “We want to promote fairness in tax administration.”
His remarks reflect a broader policy direction aimed at improving voluntary compliance and expanding Nigeria’s tax base rather than relying on rate adjustments.
Tax Awareness and Public Perception Still a Major Challenge
The minister also acknowledged the efforts of the Chartered Institute of Taxation of Nigeria in promoting tax awareness, particularly through its national tax awareness day initiatives. However, he urged the institute to expand public education campaigns to reshape how taxation is perceived.
According to him, many Nigerians still view taxation primarily as a revenue collection tool rather than a core driver of national development and infrastructure growth.
Push for Recognition-Based Incentives
In a bid to encourage better compliance culture, Oyedele proposed introducing annual awards to recognise individuals and organisations that demonstrate exemplary tax compliance. He suggested that such incentives could help normalize tax responsibility and improve voluntary participation in the system.
He added that if Nigeria succeeds in building an efficient and trusted tax structure, the resulting impact on national development would be significant and far-reaching.