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Below 40M of 220M population pay taxes

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By Mercy Kelani

Tax Reform Committee was set up by the Nigerian President for this purpose.

Muhammad Shehu, the Chairman of the Revenue Mobilization Allocation and Fiscal Commission, announced that Nigerians who were recorded paying their taxes are less than 40 million. This was stated during his speech, where he implored Nigerians to duly improve service delivery and increase government revenue through the regular payment of their taxes. He decried that the record of tax payments is of an extremely low percentage, owing to the population of the country, which is over 220 million people.

Shehu declared that the speculation of high revenue allocated to political office holders are false. He said that the elected political office holders did not receive outrageous emoluments. He added that the commission was responsible for the development of a software for promotion of transparency in revenue generation and sharing amongst the three levels of government. The initiative of a Tax Reform Committee, which was recently organized by the Nigerian President, Bola Ahmed Tinubu, was commended by Shehu.

This initiative will create a better society for all Nigerians.

According to Shehu, informal economy has had a debate ongoing about it. Coordination of all agencies, including RMAFC, will be carried out by the tax reform committee. He added that communication of objectives and articulation of positions have been done by the RMAFC to contribute value to the discussion. This initiative will also create a better society, where the tax of the people will be used and the taxpayers can enjoy it through the provision of infrastructure and better services for all Nigerians.

He implored the Federal Inland Revenue Service (FIRS) to establish a firm collaboration with the Nigeria Customs Service (NCS), which will distinguish major categories of people in Nigeria that avoid taxes. Also, some taxes are not paid to the government by Nigerian citizens. He expressed his optimism on the FIRS diligent evaluation of evaded taxes through its partnership with NCS for increased efficiency. He declared that everyone should pay their taxes, which would further provide essential services.

It is the constitutional duty of the RMAFC to review salaries.

Furthermore, the construction of good roads and functional amenities are all provided through the payment of taxes. Thus, taxes provide functional services for the people, which encourages a good environment and functional infrastructure. More so, electricity bills are essential for people to pay, including water bills — conveniently and willingly in the same way they purchase their telephone airtime. Also, road and rail construction, social security, pensions, better hospitals, can only be done through these payments.

The condemnation of the proposed increase of political office holders’ salaries by 114 percent, amidst the worsening economic hardship in the country, got reactions from Shehu. The RMAFC boss rebuffed this information about the increase of the salaries of political office holders. Although, he explained that it is the constitutional responsibility of the RMAFC to review and determine the salaries of judicial, legislative and executive officers. He stated that there have been no reviews held from 2008 to date.

Review of political office holders’ salaries is not accepted for now.

Additionally, Shehu said that the speculated increase would not be contemplated by the commission, considering the exacerbating economic difficulties which is currently faced by the citizens. He said to Nigerians that due to the challenges facing the government, the review of the salaries of political office holders will not be accepted. Shehu declared that the monthly earning of a minister is less than N1 million, while the earning of the Nigerian President is not up to N1.5 million. The chairman disclosed that statutory office running costs are what is being tagged as outrageous earnings by lawmakers.

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2 months ago

Below 40M of 220M population pay taxes.Tax Reform Committee was set up by the Nigerian President for this purpose. – Express your point of view.

Last edited 2 months ago by Ask Nigeria
2 months ago

That’s concerning to hear that less than 40 million out of Nigeria’s 220 million population pay taxes. It’s crucial to address this issue as tax revenue plays a significant role in funding public services, infrastructure development, and social welfare programs.
The establishment of the Tax Reform Committee by the Nigerian President is a positive step towards improving tax compliance and expanding the tax base. By implementing effective tax reforms, such as simplifying tax processes, improving tax administration, and promoting transparency, Nigeria can encourage more individuals and businesses to fulfill their tax obligations.
Increasing the number of taxpayers will not only generate more revenue for the government but also contribute to a fairer and more equitable society. It’s important to create awareness about the benefits of paying taxes, ensuring that tax policies are fair and progressive, and providing support to individuals and businesses to comply with tax regulations.
I believe that with the collective efforts of the government, tax authorities, and the Nigerian people, we can work towards a stronger and more sustainable economy. Let’s encourage tax compliance and ensure that everyone contributes their fair share to the development of our nation. 💪🇳🇬💼

2 months ago

major obstacle to government revenue in Nigeria is the country’s low proportion of taxpayers to its population. A good move towards tackling this problem and fostering openness in income generation is the Tax Reform Committee, which President Bola Ahmed Tinubu established.

2 months ago

The 220 million people who make up Nigeria pay 40 million taxes. Since taxes are a major source of funding for infrastructure and other government services, this issue must be addressed.
The Tax Reform Committee’s establishment is a step in the right direction.the reform should serve it purpose well