Nigeria’s tax reform drive has taken a firmer turn as the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, declared that every individual taxpayer in the country must file tax returns by March 31, regardless of income level or employment status.

Speaking during a nationwide webinar organised for human resource managers, payroll officers, chief financial officers, and tax professionals in collaboration with the Joint Revenue Board, Oyedele said the requirement applies to both employees and employers under existing tax laws, warning that widespread non-compliance continues to undermine Nigeria’s fiscal system.

According to him, filing annual tax returns is not optional, even for employees whose taxes are already deducted at source through the Pay-As-You-Earn (PAYE) system.

Why Nigerians must file tax returns by March 31
Oyedele explained that under both the old and recently reformed tax laws, individuals cannot assume that their tax obligations end once employers deduct PAYE from salaries.

“Many people wrongly believe that if they are employees and their employers have deducted tax, then they have nothing else to do. That assumption is incorrect,” he said.

“You are still required by law to file your annual tax returns.”

He added that March 31 remains the statutory deadline for filing tax returns for the preceding fiscal year, stressing that failure to comply exposes individuals and organisations to penalties under relevant tax regulations.

For employers, Oyedele said annual returns must include not only records of taxes deducted but also projections of staff emoluments and liabilities, noting that some organisations are already running out of time.

“In terms of filing returns, employers must submit annual returns for their employees. Many may have done so, but if you haven’t, you have only a few days left,” he said.

Low compliance threatens Nigeria’s tax reforms

The tax reform committee chairman expressed concern over Nigeria’s persistently low compliance rate, describing it as one of the weakest links in the country’s revenue framework.

“In many states across the federation, more than 90 per cent of eligible taxpayers do not file returns,” Oyedele revealed. “Even the most sophisticated states struggle to achieve up to five per cent compliance.”

He noted that poor filing culture limits transparency, weakens planning, and allows leakages that hurt both federal and subnational governments.

Oyedele explained that the ongoing fiscal reforms are designed not only to improve revenue collection but also to promote accountability, fairness, and trust between citizens and the state.

Reforms aim to simplify tax filing nationwide
Acknowledging the difficulties many Nigerians face in meeting tax obligations, Oyedele assured participants that tax authorities are working to simplify the filing process through digital platforms and improved coordination among revenue agencies.

“I am confident that the Joint Revenue Board, state internal revenue services, and other authorities are making efforts to ensure filing becomes easier and less burdensome,” he said.

He stressed that filing obligations apply to all income categories, including low-income earners, adding that filing a return does not automatically translate to higher tax payments but helps government maintain accurate records.

“All of us must file our returns. Even if your income is low, you still have a responsibility to file,” Oyedele said.

As part of the ongoing tax reforms, Oyedele disclosed that businesses benefiting from tax incentives are now required to formally disclose those incentives when filing returns.

He explained that while tax incentives remain a legitimate tool for economic development, transparency around their use is essential to prevent abuse.

“Under the new tax law, enterprises enjoying tax incentives must disclose them when filing their tax returns or shortly thereafter,” he said.

“This requirement does not apply to everyone, but where incentives are granted, disclosure is mandatory.”

According to him, the disclosure framework will help authorities evaluate the effectiveness of incentives, eliminate redundancies, and ensure that benefits align with national development priorities.

Oyedele emphasised that the long-term success of Nigeria’s fiscal reforms depends on shifting from coercive enforcement to voluntary compliance driven by trust and clarity.

He said consistent filing of tax returns would help government design better policies, allocate resources more efficiently, and reduce the pressure on a narrow tax base.

“No country can sustainably grow by taxing only a small fraction of its population,” he noted, adding that expanding compliance is critical to reducing over-reliance on oil revenues and borrowing.

The webinar also provided an interactive platform for professionals to ask questions and seek clarification on emerging tax obligations, with Oyedele urging organisations to educate staff and embed compliance into payroll and accounting systems.

Tax experts say Oyedele’s remarks signal a tougher compliance environment as Nigeria pushes ahead with structural fiscal reforms. With improved data sharing across tax authorities, individuals who fail to file returns may increasingly face audits, penalties, or restrictions on access to government services.

For businesses, especially those enjoying incentives or operating across multiple states, proper disclosure and timely filing are expected to become key compliance benchmarks.

As the March 31 deadline approaches, tax professionals are urging Nigerians to take advantage of available digital platforms and professional advice to avoid last-minute complications.