Nigeria is yet to generate enough revenue from taxation to meet its growing development needs, despite ongoing reforms aimed at strengthening the country’s fiscal system and improving revenue collection.

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the country must focus on expanding its tax base and improving compliance rather than increasing tax rates.

Speaking during a stakeholder engagement on tax reforms, Oyedele noted that Nigeria’s tax-to-GDP ratio remains among the lowest globally, limiting the government’s ability to adequately fund critical sectors such as healthcare, education, infrastructure and security.

He explained that while significant progress has been made in reforming the tax system, much more needs to be done to ensure that individuals and businesses who are legally required to pay taxes fulfil their obligations.

According to him, the objective of the ongoing reforms is not to place additional financial pressure on Nigerians but to create a fairer, simpler and more efficient tax system that encourages voluntary compliance.

He stressed that broadening the tax net would allow the government to generate sustainable revenue while reducing dependence on borrowing to finance public projects.

Oyedele also highlighted the need for greater public trust in the tax system, noting that transparency and accountability in the use of tax revenue are essential to improving compliance.

He urged tax authorities to strengthen public enlightenment campaigns to help citizens better understand how tax payments contribute to national development and improved public services.

He maintained that a stronger and more effective tax administration would not only increase government revenue but also support economic growth by creating a more predictable business environment.

He added that achieving meaningful development would require collective efforts from government institutions, businesses and citizens to build a tax system that is efficient, equitable and capable of meeting the country’s long-term economic goals.