A new report by a consortium of think tanks and civil society organizations reveals that 99% of tax evasion in Nigeria is linked to high-net-worth individuals, contributing to the country’s meager tax-to-GDP ratio of just 6%.
The study, titled “Taxing the Rich: Nigerian Fair Tax Monitor Thematic Report”, was published by Tax Justice Network Africa (TJNA), Oxfam Nigeria, Civil Society Legislative Advocacy Centre (CISLAC), and Oxfam Novib.
It highlights the disproportionate tax burden on the poor while exposing vast untapped revenue from the ultra-wealthy.
The report urges the Nigerian government to expand the tax net to capture the rich, emphasizing progressive taxation to curb evasion.
TJNA, a pan-African network of civil society groups—including think tanks, trade unions, feminist organizations, and faith-based groups—advocates for fair tax policies across the continent.
Oxfam works to influence policy change in favour of the poor and most vulnerable while CISLAC is a not-for-profit and research organisation promoting active civil-society monitoring and advocating for legislative accountability in Nigeria.
Investigation showed that one per cent of Nigerians, who are the richest, account for 25.5 per cent of the nation’s wealth, while the bottom 50 per cent own only 4.7 per cent.
The report indicated that Nigeria could yield more than N4.59 trillion ($6 billion) annually from taxing just 4,690 wealthy individuals to reduce inequality and significantly boost national revenue.
It added that as estimated by Institute for Policy Studies, Oxfam, Fighting Inequality Alliance and Patriotic Millionaires, implementing an annual net wealth tax in would raise more than $6 billion with rates at two per cent on wealth over $5 million; five per cent on wealth over $50 million and 10 per cent on wealth over $1 billion.
The says: “This would be enough to more than double the government’s health budget or reduce households’ out of pocket health expenditure by 40%.
“There are 4,690 individuals with a net worth of $5 million or more, with wealth totaling $107.2 billion, and 245 individuals with $50 million or more with a combined wealth of $56.5 billion.
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