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Nigeria’s tax authorities have warned that millions of employees and employers remain in breach of tax rules, urging urgent compliance as the annual filing deadline approaches.
The call was made by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, during a professional webinar held for human resources managers, payroll officers, chief financial officers, and tax managers. The session was organised in partnership with the Joint Revenue Board and later shared publicly on YouTube on Friday.
Speaking during the webinar, Oyedele stressed that employers are legally required to submit annual tax returns for their staff, including income projections for the year. He warned that organisations that have not yet complied have only a few days left before the deadline expires.
“In terms of filing returns, you need to file annual returns as employers for your employees,” Oyedele said. “Many of you must have done that already. If you have not, you have just a couple of days left to file those returns, including projections of how much you will pay your staff.”
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He added that responsibility does not stop with employers. Individual taxpayers are also expected to submit self assessment tax returns each year, a requirement he said remains widely ignored across the country.
Oyedele described Nigeria’s filing record as deeply troubling, noting that compliance levels remain extremely low even in states with more advanced tax systems.
“This is one area where we have been non compliant in Nigeria,” he said. “In many states, more than 90 percent, even the most sophisticated states, cannot boast of five percent filing returns.”
Under Nigerian tax law, employees are required to file annual returns regardless of whether their employers deduct pay as you earn taxes from their salaries. Oyedele said this misconception continues to undermine compliance.
“Many people assume that if they are an employee and the employer has deducted pay, they do not have to do anything. That is wrong,” he said. “Both under the old and new tax laws, you must still file your returns.”
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Oyedele reminded participants that tax returns for the previous fiscal year must be submitted by March 31. He added that tax authorities are working to simplify the process nationwide, particularly for low income earners.
“All of us must file our returns, including those earning low income,” he said, noting that state revenue services and the Joint Revenue Board are coordinating efforts to reduce administrative barriers.
He also pointed out that companies benefiting from tax incentives now have a duty to declare those benefits when filing returns, a requirement introduced under recent tax reforms aimed at improving transparency and revenue tracking.
Nigeria’s tax to GDP ratio remains among the lowest globally, according to data from the Federal Inland Revenue Service, with authorities increasingly focused on expanding the tax base rather than raising rates. Officials say improved filing compliance will play a key role in boosting public revenue and funding essential services.
