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By Uche Usim
With tax deadlines fast approaching, the chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele has warned employers and individuals across Nigeria that paying taxes alone is not enough—filing annual tax returns remains a legal obligation, even when deductions have already been made.
Speaking during a webinar for HR managers, payroll officers, chief finance officers and tax managers, Oyedele lamented Nigeria’s persistently low tax compliance rate, noting that fewer than five per cent of taxpayers file annual returns in many states. He described the situation as alarming, especially as tax authorities intensify reforms aimed at improving transparency and revenue mobilisation.
Oyedele reminded employers that they must file annual tax returns for their employees by January 31, while individual taxpayers are required to submit their self-assessment returns by March 31. According to him, many Nigerians wrongly assume that once Pay-As-You-Earn (PAYE) taxes are deducted from salaries, no further action is required.
“That assumption is wrong,” he said. “Both under the old and the new tax laws, employees and employers must still file returns. Tax deduction does not replace the obligation to disclose.”
He explained that filing tax returns is not merely a formality but a key disclosure requirement that allows tax authorities to assess compliance accurately. This obligation applies even to low-income earners and businesses enjoying tax incentives, as such incentives must also be declared.
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Oyedele noted that widespread non-compliance is partly driven by lack of awareness and the complexity of filing processes. However, he disclosed that tax authorities, working with the Joint Revenue Board and state internal revenue services, are taking steps to streamline and simplify the system to encourage voluntary compliance.
“In many states, more than 90 per cent of eligible taxpayers have not filed returns,” he said. “Even jurisdictions considered sophisticated struggle with compliance. This shows we still have a long way to go.”
He stressed that under the reformed tax framework, transparency and disclosure would take centre stage, making it increasingly risky for individuals and businesses to remain outside the system. Non-compliance, he warned, could attract penalties, audits and reputational risks.
Oyedele urged employers, entrepreneurs and professionals to act quickly, noting that only a few days remained before statutory deadlines expire. He added that filing returns also helps taxpayers clarify their true tax position, especially where projections differ from actual earnings.
“All of us must comply with the law,” he said. “The goal is not punishment but building a culture of transparency and responsibility.”
The webinar, which has since been shared online, forms part of ongoing efforts to deepen tax education and boost compliance across Nigeria’s formal and informal sectors.
