Nigeria’s Active Individual Taxpayers Below 10 Million, Oyedele Warns, Exposing a Fragile Fiscal Foundation

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has revealed a startling statistic that has reignited debate about Nigeria’s economic structure and governance challenges: fewer than 10 million Nigerians currently qualify as active individual taxpayers. In a country with an estimated population of over 230 million people, the figure highlights the narrowness of Nigeria’s tax base and the deep structural weaknesses undermining sustainable public finance.

Oyedele made this disclosure while delivering a keynote address at the Tax Reform Summit 2026 held in Lagos. The summit, themed “From Reforms to Results: The Lagos Implementation Roadmap, Creating a Tax Environment that Works for All,” was organised by the Office of the Special Adviser on Taxation and Revenue in collaboration with the Lagos State Treasury Office. His remarks were aimed not merely at Lagos State policymakers but at the entire federation, as they underscored a national crisis in revenue mobilisation.

According to Oyedele, Nigeria’s low number of active taxpayers is not only a revenue problem but also a data problem. He stressed that meaningful tax reform is impossible without credible, harmonised, and comprehensive databases. These include accurate records of individuals, properties, businesses, and fiscal transactions. Without reliable data, governments are left guessing, enforcement becomes arbitrary, and citizens lose trust in the system.

“In Nigeria today, the number of active individual taxpayers is under 10 million for the whole country,” Oyedele said. “Frankly, that number should be what we have in Lagos State alone. And we need to make that possible.” His statement drew attention to the economic paradox of Lagos: Africa’s largest city by population and one of its biggest commercial hubs, yet still operating far below its revenue potential.

Oyedele argued that expanding the tax net does not necessarily mean increasing tax rates or punishing the poor. Instead, it requires identifying those who should already be paying but are currently outside the formal system. He noted that many economically active Nigerians remain undocumented due to weak data integration across federal, state, and local government agencies. This has allowed widespread tax evasion while a small, formal segment of the population bears a disproportionate burden.

One of the most striking parts of his presentation was his emphasis on property taxation as a largely untapped and stable revenue source. Oyedele described property tax as one of the most reliable forms of taxation globally, yet grossly underutilised in Nigeria. He estimated that Lagos State alone could generate up to ₦1 trillion annually from property taxes if the sector were properly structured and administered.

To illustrate, he explained that if just two million properties in Lagos were brought into the tax net, with an average value of ₦100 million and a modest tax rate of 0.5 per cent, the state could raise ₦1 trillion every year. Such revenue, he said, could be reinvested into infrastructure, transport, housing, and public services, thereby increasing property values further and creating a virtuous cycle of growth.

However, Oyedele cautioned that property taxation would only succeed if certain conditions were met. These include proper property enumeration, accurate and transparent valuation, predictable enforcement, and clear communication with taxpayers. Arbitrary charges and opaque processes, he warned, would only deepen public resistance and distrust.

Beyond Lagos, Oyedele called for nationwide harmonisation of tax laws to reduce confusion, multiple taxation, and inter-agency rivalry. He disclosed that a model tax harmonisation law developed by the Presidential Tax Reform Committee in collaboration with the Joint Revenue Board had already been adopted by states such as Ekiti, Zamfara, Anambra, and Kano. He urged Lagos and other economically strategic states to lead by example in adopting similar frameworks.

The reaction to Oyedele’s remarks has been mixed. While some analysts and citizens agree that Nigeria cannot sustainably fund its population with oil revenues and borrowing alone, others argue that taxation cannot succeed without first addressing corruption, waste, and poor service delivery. Many Nigerians remain sceptical, questioning why they should pay more taxes when basic infrastructure, security, and social services remain inadequate.

Still, Oyedele’s message was clear: Nigeria’s fiscal challenge is structural, not cosmetic. With oil revenues declining, debt levels rising, and a rapidly growing population, the country faces a stark choice. Either it broadens its tax base through credible reforms and improved trust, or it continues down an unsustainable path of borrowing, inflation, and fiscal instability. In that context, the figure of “less than 10 million taxpayers” is not just a statistic—it is a warning sign.