Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, has revealed that 90% of Nigerian taxpayers are individuals who should not be paying taxes. Speaking at the 30th Nigerian Economic Summit (NES), Oyedele advocated for a more equitable tax system in the country, calling for reforms to ensure that the right people are taxed.
He explained that the government is committed to ensuring that only the appropriate individuals are taxed, and his committee is working toward that goal. "People will pay tax once we decide that they have to pay," Oyedele stated. "What we realise is that almost 90% of people who are paying taxes are those who should not have been paying in the first place."
He further highlighted that 97% of the informal sector should be exempted from taxes, as these individuals are merely trying to survive. Oyedele emphasized that many Nigerians do not understand that they are not the ones who should be bearing the tax burden.
A Data-Driven Approach to Tax Reform
To ensure that the right individuals are taxed, Oyedele said the committee will employ primary data identification channels, such as the National Identification Number (NIN) for individuals and the Corporate Affairs Commission (CAC) registration number for businesses. This system will link economic activities to data/ID, ensuring that every economic transaction is accounted for.
"We’re developing a system for government and corporations conducting business," Oyedele explained. "Everything you do that constitutes an economic activity will be linked to that data/ID—whether you open a bank account, spend using your payment card, travel abroad, or even use your phone."
He noted that when individuals declare their income, the system will cross-check their expenditures, ensuring that their spending aligns with their declared earn
