Nigerian Government Unveils New Plan to Expand Taxation Amid Economic Challenges

The Nigerian government is set to widen its tax base through new reforms aimed at increasing national revenue

The Nigerian government expands tax base with its latest initiative to generate more revenue despite the ongoing economic challenges. This move, which is part of the Economic Stabilisation Bills, was approved by the Federal Executive Council and aims to address the nation’s financial shortfalls by introducing wider taxation across various sectors.

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy Tax Reforms, disclosed the government’s intention to launch the “Tax Identification Consolidation and Collaboration (TICC)” initiative. The initiative is designed to expand Nigeria’s tax base and create a more comprehensive framework for tax collection. According to Oyedele, these measures are part of 15 laws that focus on taxation, fiscal management, and business regulation, all working toward ensuring long-term economic stability and inclusive growth.

The Nigerian government expands tax base initiative comes amid growing public concern over the financial burden faced by citizens, with inflation at a staggering 32.15% in August 2024. Critics, including opposition figures like Atiku Abubakar, have voiced concerns that expanding the tax net could further strain Nigerians, especially after the government’s previous attempt to raise the Value-Added Tax (VAT) rate from 7.5% to 10%.

Despite these concerns, the Nigerian government expands tax base in an effort to stabilize the economy, with the TICC initiative intended to create a fairer system for businesses and individuals alike. The bill is now awaiting approval from the National Assembly, as the country navigates through its ongoing economic crisis.

This development raises the question of how effective the new measures will be, as the Nigerian government expands tax base to tackle its fiscal challenges amid the high cost of living experienced by its citizens.