The Nigerian government said that tax reforms targeted accountability, not the poor

The Chairperson of the Presidential Fiscal and Tax Reform Committee, Taiwo Oyedele, has stated that more than 90 percent of operators in the informal sector of Nigeria do not have the financial capacity to pay taxes.

Speaking of interactive sessions with journalists, influencers, and policy analysts on Friday, Oyedele said the available data contradicts popular beliefs that the potential for unfaited state revenue lies in the informal economy.

He noted that the government’s efforts to impose tax segments had caused the proliferation of several taxes without significant return.

“More than 90 percent of people in the informal sector only struggle to survive. They do not avoid taxes – they only lack the capacity to pay,” Oyedele said. “The seller of roadside corn, vulcaniser, or cart driving may work throughout the day and still remain poor. Such people should not be taxed.”

According to him, this principle supports the direction of the Tinubu Ball President that poverty and capital should not be taxed.

“We are not allowed to impose taxes on the seeds; we must wait for fruits,” Oyedele added.

The head of fiscal policy further revealed that the new tax law had introduced tighter accountability steps and a tougher sentence for avoidance, both for taxpayers and professionals in the system.

He revealed that the Federal Inland Revenue Service (FIRS) gathered more than ₦ 20 trillion of last year’s tax and was on track to exceed that number in 2025, thanks to reforms that had increased efficiency and transparency.

“The new law has strengthened governance and accountability. Tax officers can now be held accountable for negligence,” he said. “All revenues are now directly entering the federation account, eliminating leakage and blurry practice.”

Oyedele also acknowledged that corruption in the tax system had involved taxpayers, consultants, and officials, but ensured that the new legal framework now spoke to all parties.

“Tax avoidance is now more expensive below the new law,” he explained. “Tax agents are monitored, officers are responsible, and the system is more transparent. Overall, this reform takes Nigeria’s tax administration in the right direction.”