One year after President Bola Tinubu signed Nigeria’s landmark tax reform legislation, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has identified poor public compliance — not insufficient tax rates — as the country’s most pressing revenue challenge.
Oyedele made the remarks in Abuja during a courtesy visit by a delegation from the Chartered Institute of Taxation of Nigeria (CITN), who called on him to mark the 2026 National Tax Awareness Day.
The minister said a fundamental perception problem continues to undermine the country’s tax system, with many Nigerians viewing taxation as government taking from citizens rather than citizens investing in national development.
“We are still not getting enough revenue from tax. 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 said.
Oyedele stressed that fixing the tax system could be transformative for the country, stating that the level of national development that would follow a well-functioning revenue framework would be significant. He commended CITN for launching the National Tax Awareness Day and proposed introducing annual awards to recognise tax-compliant individuals and businesses.
The CITN delegation also visited the newly commissioned headquarters of the Nigeria Revenue Service (NRS) in Abuja, where they were received by the Executive Director of Finance and Corporate Services, Mohammed Abubakar, representing NRS Executive Chairman Dr. Zacch Adedeji.
Abubakar described the one-year anniversary of the tax reforms as a milestone, saying the legislation had launched a new chapter in Nigeria’s approach to revenue administration — one built on simplicity, fairness, transparency and improved service delivery.
The NRS Executive Director for Technology and Innovation, Iniabasi Akpan, said the service is leveraging digital platforms, including a tool called Rev360, to make tax compliance more accessible. He emphasised that enforcement alone cannot drive revenue growth, arguing that taxpayer education and public trust in government institutions are equally critical.
CITN President Innocent Ohagwa acknowledged that the reforms have been widely misunderstood since their introduction. He said many Nigerians incorrectly believe the changes introduced entirely new taxes on virtually all economic activity, or that they were designed purely to increase government revenue at the expense of citizens and businesses.
Ohagwa outlined several relief provisions embedded in the reforms that have gone largely unnoticed. For individuals, taxpayers can now claim rent relief of up to 20 percent of annual rent paid, capped at N500,000. Essential goods and services — including food, education, healthcare, electricity transmission and non-oil exports — now attract zero-rated VAT. Compensation for job loss or personal injury also qualifies for higher tax exemption thresholds.
For small businesses, the reforms are particularly significant. Companies with annual turnover not exceeding N100 million and fixed assets below N250 million are exempt from Companies Income Tax, Capital Gains Tax and the Development Levy — a provision Ohagwa said would free thousands of small enterprises to reinvest in growth, jobs and innovation.
Additional incentives have also been introduced for sectors including agriculture, aquaculture, dairy production, cocoa processing and animal feed manufacturing, aimed at boosting investment and supporting food security.
Despite the benefits on offer, Ohagwa reminded taxpayers that the reforms come with obligations. He urged individuals and businesses to obtain Tax Identification Numbers, maintain accurate records and file returns promptly.
“Compliance is not a burden; it is a civic duty. Taxation works best when there is trust — taxpayers must fulfil their obligations, while government must uphold accountability, transparency and the effective use of public resources,” he said.
As part of the National Tax Awareness Day activities, CITN members visited Wuse Market in Abuja to sensitise traders and business owners on the provisions of the new tax laws and encourage voluntary compliance.
