Wealthy Nigerians to Pay More Under Tinubu Tax Plan

Nigeria plans to overhaul its tax system to shift more of the burden to wealthy citizens while cutting corporate taxes.

The move — part of President Bola Tinubu’s reforms – aims to lift the country’s tax take to 18% of gross domestic product within three years from 11% now.

The plan is to make “the rich pay what is fair and those who are too poor can be protected,” said Taiwo Oyedele, who is leading a panel appointed by Tinubu to drive the changes.

“We also envisage a reduction in the corporate income tax rate,” to below the current effective rate of more than 40% to help boost business, he told Bloomberg in a recent interview. The new rate should be benchmarked against Nigeria’s peers, he said.

Among 4 million registered firms, less than 250,000 actively pay tax, while fewer than a quarter of the 41 million registered people pay income tax, Oyedele said.