Many eligible Nigerian taxpayers remain outside net, says Oyedele

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said Nigeria is still generating far below its potential in tax revenue, stressing that the country’s challenge lies not in raising tax rates but in ensuring that all eligible taxpayers comply with their obligations.

Oyedele made the remarks on Thursday in Abuja while receiving the leadership of the Chartered Institute of Taxation of Nigeria (CITN), led by its President, Innocent Ohagwa, during activities marking the institute’s maiden National Tax Awareness Day road walk.

The minister noted that expanding tax compliance through a fair, transparent and efficient tax administration system remains central to the Federal Government’s ongoing fiscal reforms.

“We are still not getting enough revenue from tax,” Oyedele said.

“It is not about increasing tax, but making sure that those who are supposed to pay tax pay. We want to promote fairness in tax administration.”

He explained that the government’s focus is on broadening the tax net by improving compliance rather than imposing additional tax burdens on citizens and businesses that already fulfil their obligations.

According to him, an equitable tax system would ensure that everyone liable to pay taxes contributes their fair share, thereby reducing the pressure on compliant taxpayers while boosting government revenue for national development.

The minister commended the Chartered Institute of Taxation of Nigeria for supporting the Federal Government’s tax reform agenda and for promoting public education on taxation.

However, he urged the institute to intensify its public enlightenment campaigns, noting that many Nigerians still misunderstand the role of taxation in economic development.

Oyedele observed that a significant number of citizens continue to perceive taxation merely as a mechanism for government to generate revenue rather than as a critical tool for funding infrastructure, public services and sustainable national development.

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He expressed confidence that Nigeria’s economic transformation would accelerate if the country’s tax system becomes more efficient, transparent and widely embraced by taxpayers.

According to him, getting the nation’s tax administration right would unlock enormous development opportunities and strengthen the government’s capacity to finance critical sectors of the economy.

As part of efforts to encourage greater voluntary tax compliance, the minister challenged the institute to establish annual awards recognising individuals and organisations with exemplary records of tax compliance.He said publicly rewarding taxpayers who consistently meet their obligations would help promote a culture of compliance and reinforce the importance of taxation as a civic responsibility.

The visit formed part of activities commemorating the Chartered Institute of Taxation of Nigeria’s inaugural National Tax Awareness Day, an initiative aimed at deepening public understanding of taxation and encouraging greater compliance across the country.