Nigeria needs more taxpayers, not higher taxes, according to Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, who said expanding the country’s tax base is essential to generating sustainable revenue and supporting long-term development.
Oyedele stated that Nigeria’s tax challenge is not necessarily low tax rates but the relatively small number of individuals and businesses that comply with tax obligations. He stressed the importance of ensuring that those who should pay taxes are brought into the tax net while promoting fairness and efficiency in tax administration.
According to him, the country cannot continue to depend heavily on borrowing to finance critical sectors such as infrastructure, education, healthcare, security, and social protection. He noted that building a sustainable fiscal system requires a broader tax base capable of generating stable and predictable revenue.
Oyedele explained that effective tax reforms should encourage economic growth, reduce inequality, protect vulnerable groups, and improve productivity. He added that a well-functioning tax system could significantly accelerate national development and improve public service delivery.
The comments come amid the implementation of ongoing tax reforms designed to simplify Nigeria’s tax framework, improve compliance, and make the system more competitive and equitable. Recent reforms also introduced relief measures and exemptions for low-income earners and small businesses while seeking to reduce the country’s reliance on debt-financed development.
Economic experts say broadening the tax net through increased compliance and formalisation of economic activities could improve government revenue without placing additional burdens on existing taxpayers.
