Financial experts have expressed their support for the Federal Government’s proposal to tax wealthy Nigerians, considering it a progressive measure that can promote income redistribution and enhance the country’s fiscal revenues.
In separate interviews, these experts have lauded the government’s initiative, describing it as a step in the right direction toward creating a more equitable tax system.
Dr. Muda Yusuf, CEO of the Center for the Promotion of Private Enterprise (CPPE), referred to this proposal as a welcome development. He highlighted that this approach represents a form of progressive taxation, where high-net-worth individuals are expected to contribute more to the tax system. He emphasized that this practice is common in economically developed countries, enabling income redistribution.

Yusuf also criticized the current situation where wealthy citizens often do not remit the appropriate percentages of taxes to the government. He pointed out that their tax contributions are not proportional to their net worth and affluent lifestyles, often shortchanging the government.
Dr. Mc-Antony Dike, former President of the Chartered Institute of Taxation of Nigeria (CITAN), affirmed the constitutional basis of the government’s proposal to tax wealthier citizens. He explained that Nigerian tax laws stipulate that anyone earning an income, whether legitimately or otherwise, must pay their taxes. Dike referred to the Personal Income Tax Act of 2011, as amended, which removed exemptions granted to the President of Nigeria, reinforcing the principle that anyone with legitimate income must pay tax.
Dike underscored that rich Nigerians who evade taxes deny the government the revenue required to provide essential public services to citizens. He also highlighted the success of countries like South Africa in fostering greater tax compliance culture, with personal income tax previously contributing a significant portion of total tax collections in that nation.
Godwin Anono, President of the Standard Shareholders Association of Nigeria, described the federal government’s plan to tax wealthier Nigerians as a novel initiative. He believes that this policy aims to reduce economic inequality in Nigerian society, with the elite contributing through their taxes to support economically vulnerable citizens. Anono suggested that the government should leverage technology to expand the pool of eligible taxpayers.
It’s essential to note that the Federal Government has outlined its intention to commence taxing wealthy Nigerians to attain its 18% Tax-GDP ratio revenue target. According to Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, this move is part of President Bola Tinubu’s reforms, aiming to achieve an 18% tax-to-GDP ratio within three years. The objective is to ensure that the rich contribute more to taxes, benefiting the less privileged. Additionally, Taiwo envisions a reduction in the corporate income tax rate, which currently stands at over 40%, to stimulate business growth.
In conclusion, the proposal to tax wealthy Nigerians has gained support from financial experts who view it as a positive step toward income redistribution and strengthening fiscal revenues. This initiative is considered constitutional and in line with global tax practices. It aligns with the government’s goal to improve the country’s tax compliance culture and reduce economic inequality. Leveraging technology to broaden the tax net is also recommended to ensure a more equitable and efficient tax system in Nigeria.
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate