NIGERIA NEEDS MORE TAXPAYERS, NOT HIGHER TAXES – OYEDELE

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has advocated for broadening Nigeria’s tax base by bringing more citizens into the tax net rather than increasing existing tax rates.

Speaking at a public lecture on fiscal sustainability in Abuja on Friday, Oyedele emphasised that sustainable revenue generation lies in expanding the number of taxpayers, not overburdening the current compliant ones. “Nigeria does not need higher taxes; what we urgently need is more taxpayers. Our focus should be on widening the tax net through fairness, simplicity, and inclusion,” he stated.

Oyedele highlighted that millions of eligible Nigerians, particularly in the informal sector, remain outside the tax system, depriving the government of critical revenue needed for infrastructure and social services. He noted that recent reforms under the Tinubu administration have already simplified tax processes and eliminated multiple taxation, yielding positive early results in voluntary compliance.

The tax expert warned that further rate hikes could stifle economic growth and drive businesses underground. “When you make the system fair and transparent, people will willingly pay. Coercive measures only breed resistance,” he added. Oyedele cited successful models from countries that grew their revenue significantly by formalising small businesses and improving taxpayer services.

Participants at the event, including business leaders and economists, largely endorsed the position. The Director General of the Lagos Chamber of Commerce and Industry, Mr. Chinyere Almona, described the approach as “pragmatic and growth-oriented,” urging faster implementation of digital tax platforms to ease registration and filing.

However, some labour representatives cautioned that efforts to expand the tax base must be accompanied by visible improvements in public service delivery to maintain public trust.

The Federal Inland Revenue Service (FIRS) has been intensifying taxpayer education campaigns and automation drives in line with this philosophy.

 Oyedele assured that the committee’s recommendations aim to create a more efficient, equitable, and less burdensome tax regime that supports economic recovery.

As Nigeria grapples with fiscal deficits and debt servicing, experts believe shifting focus from rate increases to base expansion could unlock substantial non-oil revenue while fostering a conducive business environment.