The primary goal of this tax overhaul is to escalate the country's tax revenue to 18% of Gross Domestic Product (GDP) within a three-year timeframe, a substantial ascent from the current 11%, as reported by Bloomberg. In line with this, there is also contemplation of implementing a tax amnesty program designed to incentivize tax compliance.

Taiwo Oyedele, who heads a panel appointed by President Tinubu to spearhead these transformative changes, articulated the rationale behind this initiative, stating, "We intend to ensure that the affluent contribute their fair share while safeguarding the vulnerable in society."

In a recent interview with Bloomberg, he also expressed the intention to reduce the prevailing corporate income tax rate, which currently exceeds 40%, in order to stimulate business growth. The new rate will be meticulously benchmarked against Nigeria's economic peers.

In Nigeria, a nation characterized by extreme wealth disparity, where a minute fraction of the population enjoys vast riches while the majority grapples with abject poverty, indications point towards widespread tax evasion. N

igeria's tax revenue as a percentage of GDP languishes at one-third of the 34% average among members of the Organisation for Economic Co-operation and Development (OECD). Shockingly, among the four million registered firms, fewer than 250,000 diligently fulfill their tax obligations. Additionally, less than 25% of the 41 million registered individuals contribute to income tax.

The intricacies of Nigeria's tax system are further complicated by the overlapping jurisdictions of local, state, and federal authorities, a circumstance that facilitates tax evasion by the affluent. The system is also plagued by a multitude of diverse taxes, estimated at nearly 70, adding a layer of complexity that hinders effective tax collection.