Presidential Committee on Fiscal Policy and Tax Reforms Chairman Taiwo Oyedele unveiled plans to revamp Nigeria’s tax system, tackling the staggering 75% tax gap. Only 17% of Nigerians and 30% of businesses currently pay taxes, largely due to distrust in government.
Oyedele stated, “What we want to do is have a National portal just like South Africa where tax payment is seamless and transparent… Our current tax gap is about 70-75% but if we correct that and everyone pays, our revenues will be 4 times.”
The committee aims to reduce personal income tax for those earning below N1.5 million monthly once the Economic Stabilization Bill is passed. However, “the rich people earning N1.5 million above will see their personal income tax rise by up to 25%.”
A policy document before the National Assembly targets reducing tax burdens on businesses. Oyedele noted, “Corporate income tax rate will reduce from 30 to 25%… we are hopeful it comes on board in January 2025.”
The Economic Stabilization Bill also harmonizes over 60 official taxes paid by Nigerians, removing disincentives. Oyedele emphasized, “The main issue remains compliance issue.”
Central Bank of Nigeria’s Acting Director, Banking Supervision, Dr. Adetona Adedeji, discussed monetary policy innovations. “We want a situation where every bank will put in place a cyber security management mechanism to boost investor confidence and trust.” The CBN is accelerating inflation targeting for price stability.
