The Federal Government of Nigeria is setting its sights on generating up to $3 billion in monthly revenue through a revamped, technology-driven tax system aimed at boosting efficiency, transparency, and compliance.
This target is part of a fiscal reform agenda led by President Bola Tinubu’s administration, which seeks to modernise the country’s tax infrastructure, reduce reliance on oil revenue, and create a more inclusive and sustainable economy.
At the ongoing 27th Annual Tax Conference of The Chartered Institute of Taxation of Nigeria (CITN) in Abuja, government officials and tax experts converged to spotlight taxation as a transformative lever for national development.
The event drew focus to the ongoing fiscal policy and tax reforms initiated by the Tinubu administration, with stakeholders calling for more inclusive implementation and transparent governance to harness the full benefits.
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Representing Tinubu, Doris Nkiruka Uzoka-Anite, the Minister of State for Finance, in a keynote address stated that taxation not merely as a mechanism for generating revenue but as a fundamental tool for development.
“Taxation is more than revenue; it is a tool for development”, Uzoka-Anite stated as she outlined the government’s commitment to repositioning Nigeria’s tax structure as transparent, equitable, and aligned with national aspirations.
According to her, reforms are leveraging technology and data analytics to improve compliance and service delivery across the tax ecosystem.
The minister noted that the reforms were crafted to address persistent issues such as the multiplicity of taxes, weak coordination between different tiers of government, and poor compliance levels.
She cited the work of the Presidential Committee on Fiscal Policy and Tax Reforms, which was established in 2023, as a major contributor to recent progress. The committee has made headway in expanding Nigeria’s tax base and aligning fiscal measures with broader developmental goals.
Uzoka-Anite commended the recent passage of the Economic Stabilization Bill and other supportive legislation but emphasized that success lies in execution.
“The success of any reform depends heavily on execution. We must translate policies into measurable outcomes,” she said.
In highlighting economic gains from the past year, the minister revealed that Nigeria recorded a $6.8 billion balance of payments and a $16 billion trade surplus in 2024.
The country also settled $7 billion in annual obligations on foreign exchange forwards and repaid $1.5 billion over two years.
However, she acknowledged that inflation, although gradually declining, remains a significant concern.
Reaffirming the president’s people-first reform vision, she said, “It’s not about the economy; it’s about the people who are affected. Reforms must deliver real value to citizens.”
State governors at the conference added a sub-national perspective, detailing how reforms are impacting local economies. Caleb Mutfwang, Governor of Plateau State stressed that wealth creation must precede taxation.
“Poverty cannot be taxed. You must first create wealth, and then you can tax it,” he said, reflecting on reforms his administration had introduced to improve fiscal sustainability.
Lucky Aiyedatiwa, Governor of Ondo State, in a paper titled “Tax Reforms and Expectations of Sub-nationals”, noted that critical indicators such as a 33.3 percent inflation rate in late 2024, declining foreign direct investment which fell to $29.8 million in Q2 2024, and a still-dismal tax-to-GDP ratio below 11 percent, among the lowest globally.
However, he praised the federal government’s plans for a more progressive tax regime set to take effect in 2025.
The proposal includes an N800,000 tax-free income threshold and reduced development levies aimed at alleviating pressure on low-income earners.
Aiyedatiwa urged states to domesticate federal tax laws and modernize their infrastructure.
He called for greater adoption of digital systems and stronger public-private partnerships to improve compliance and revenue collection.
“We must build the tools to make these policies effective on the ground,” he said.
Throughout the conference, the conversation repeatedly turned to Nigeria’s move toward a more autonomous and efficient sub-national tax structure.
More than 60 percent of the country’s 36 states are expected to gain from reforms that prioritize fiscal independence and improved service delivery.
According to Uzoka-Anite, the broader vision includes reducing compliance costs through digitization, eliminating overlapping mandates, and promoting voluntary compliance through a more transparent and fair process.
“You are the custodians of Nigeria’s tax equation. Challenge assumptions. Shape policies. Drive growth”, she told tax professionals.
The panel session dove into the need for greater synergy between the federal and state governments in tax governance.
Speakers emphasized the importance of subnational participation in international tax negotiations, such as double taxation treaties, which until recently were the exclusive domain of the federal government.
“Subnationals will now have a say,” Aiyedatiwa said, citing new protocols designed to give states a voice in fiscal policies that directly impact their revenues.
Panelists also flagged the need to respect and restructure existing Government Mandated Operations (GMO) taxes to enhance clarity and ensure predictability.
The lack of reliable data on tax compliance and property ownership emerged as a major issue.
Another participant challenged government agencies to confront the trust deficit head-on.
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“We own eight houses. Isn’t our data in the system? Do people believe the data? The answer is no,” the speaker remarked, drawing attention to the importance of data credibility in fiscal governance.
To that end, the government announced that efforts are underway to build a unified tax data system, a shared database integrating federal and state tax platforms.
This database will support joint audits, curb tax evasion, and provide a seamless system for tracking compliance across all tiers of government.
Beyond technical fixes, stakeholders highlighted service delivery as the ultimate test of tax reform.
Discussions also addressed the need for harmonized enforcement strategies, shared intelligence between federal and state authorities, and a renewed focus on capturing untapped revenues from informal sectors and under-assessed property classes.
Panelists underscored the magnitude of the task ahead, stating, “We are venturing into uncharted territory, and it’s critical that we get it right.” They captured the essence of the challenge with a pointed reminder: “The question is no longer whether we can reform, but whether we will follow through openly, honestly, and accountably.”
Stakeholders called for a tax regime that aligns with global best practices, one that transforms taxation from a mere fiscal obligation into a credible tool for driving inclusive and sustainable national growth.
