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.

The post Nigeria Needs More Taxpayers, Not Higher Taxes, Says Oyedele appeared first on Housing TV Africa.

Manufacturing emerged as the highest contributor to Nigeria’s non-oil tax revenue in the first quarter of 2026, generating ₦404 billion through Value Added Tax (VAT) and Company Income Tax (CIT).

This was revealed in the latest fiscal performance data covering key sectors of the economy, showing how industrial activity continues to play a central role in strengthening government revenue beyond crude oil earnings.

The sector’s contribution highlights the growing importance of domestic production and industrial output in Nigeria’s revenue structure. Despite ongoing economic pressures, manufacturing firms accounted for a significant share of tax inflows driven by increased production activities and formal sector compliance.

The data indicates that VAT collections remain a major driver of non-oil revenue, reflecting consumption patterns tied to manufactured goods and services. CIT payments from manufacturing companies also contributed substantially, reinforcing the sector’s position as a key pillar of corporate taxation.

Other sectors also contributed to non-oil revenue generation, but manufacturing maintained the lead, underscoring its expanding footprint in the country’s fiscal landscape. Analysts note that this trend reflects gradual improvements in industrial activity and tax compliance within the formal economy.

The performance comes at a time when Nigeria continues to push for diversification away from oil dependency. Policymakers have repeatedly emphasized the need to strengthen non-oil sectors such as manufacturing, agriculture, and services to stabilize public revenue.

However, challenges such as high production costs, foreign exchange pressures, and infrastructure deficits continue to affect manufacturing output. Industry operators have consistently called for reforms aimed at improving power supply, logistics, and access to affordable financing.

Despite these constraints, the sector’s strong tax contribution in the first quarter of 2026 signals resilience and its critical role in supporting government revenue objectives.

The post Manufacturing Leads Non-Oil Tax Revenue With ₦404bn Contribution appeared first on Housing TV Africa.