A new report by a coalition of think tanks and advocacy groups has revealed that tax evasion among Nigeria’s high-net-worth individuals is a major contributor to the country’s low tax-to-GDP ratio of just 6%.
The report, titled “Taxing the Rich: Nigerian Fair Tax Monitor Thematic Report”, was published by Tax Justice Network Africa (TJNA), Oxfam Nigeria, the Civil Society Legislative Advocacy Centre (CISLAC), and Oxfam Novib. It highlights the disproportionate tax burden on low-income earners while exposing the vast untapped revenue potential from taxing the ultra-wealthy.
Findings from the investigation show that the wealthiest 1% of Nigerians control 25.5% of the country’s wealth, while the bottom 50% own just 4.7%. However, despite their immense wealth, nearly all of Nigeria’s richest individuals evade tax payments, leaving the government with significant revenue shortfalls.
The report estimates that implementing a progressive wealth tax—with rates of 2% on wealth over $5 million, 5% on wealth over $50 million, and 10% on wealth over $1 billion—could generate over $6 billion (₦4.59 trillion) annually. This amount, the report states, could more than double Nigeria’s health budget or reduce household out-of-pocket health expenses by 40%.
With 4,690 Nigerians holding a combined wealth of $107.2 billion and 245 individuals possessing more than $50 million in assets, the report urges the government to expand the tax net to include the ultra-rich. The coalition behind the report advocates for progressive taxation, stronger tax enforcement, and policy reforms that ensure Nigeria’s wealthiest individuals contribute their fair share toward national development.
As the country grapples with economic challenges, experts warn that failure to address tax evasion among the elite will continue to widen inequality and limit government revenue for critical public services.
Comments