The Federal Government has reminded all Nigerians, including workers, employers, and business owners, that filing annual tax returns is compulsory and must be done on or before March 31 every year.
The call was made by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, during a recent webinar organised in partnership with the Joint Revenue Board. The online session was aimed at human resource professionals, payroll officers, chief financial officers, and tax managers across the country.
Oyedele used the forum to stress that tax compliance remains a serious problem in Nigeria, as many individuals and organisations still fail to submit their yearly tax returns as required by law.
According to him, employers are expected to file annual tax returns for their workers, while individual taxpayers must also submit self-assessment returns, regardless of whether their taxes are deducted at source.
“In terms of filing returns, you need to file annual returns as employers for your employees. Many of you must have done that already,” Oyedele said.
“If you haven’t, you have just a couple of days left to file those returns, including projections of how much you will pay your staff.”
Oyedele expressed concern over the level of non-compliance across the country, noting that many states record very low numbers of people filing tax returns every year.
“This is one area where we have been non-compliant in Nigeria,” he said. “In many states, more than 90 per cent, even the most sophisticated states, cannot boast of five per cent filing returns.”
However, the government has continued to insist that taxes are critical to national development, especially at a time when oil revenues are falling and public spending needs are rising.
Oyedele explained that one of the most common misunderstandings among Nigerian workers is the belief that once tax is deducted from their salaries, they no longer have any responsibility to the tax authorities.
He made it clear that this belief is wrong under both old and new tax laws.
“Many people assume that if they are an employee and the employer has deducted pay, they don’t have to do anything. That is wrong,” he said.
“Both under the old and new tax laws, you must still file your returns.”
He explained that tax deductions made by employers, known as Pay As You Earn (PAYE), do not replace the legal duty of individuals to declare their income and file annual returns with the relevant tax authorities.
Tax officials say this requirement helps the government track income levels, reduce tax evasion, and plan better for public services.
The chairman reminded Nigerians that the deadline for filing tax returns for the previous fiscal year is March 31.
“All of us must file our returns, including those earning low income,” he said. “You must file returns by 31st March of the year in respect of the previous fiscal year.”
Failure to meet this deadline may attract penalties, interest charges, or legal action, depending on the tax laws of each state.
Nigeria operates a federal tax system where personal income tax is mainly administered by state internal revenue services, while corporate taxes are handled by the Federal Inland Revenue Service (FIRS).
Oyedele acknowledged that the tax filing process can be difficult for many Nigerians, especially those with limited knowledge of tax rules or access to digital tools.
He said efforts are being made by tax authorities at both federal and state levels to simplify the process and encourage more people to comply.
“I’m sure the tax authorities, joint revenue boards, and various state internal revenue services are working on how to make this process simpler and easier,” he said.
In recent years, several states have introduced online tax portals, mobile apps, and taxpayer education programmes to improve compliance. However, many Nigerians, especially in the informal sector, remain outside the tax net.
Oyedele also revealed that companies benefiting from tax incentives now have additional responsibilities under the new tax reform framework.
He said businesses that enjoy incentives such as tax holidays, exemptions, or reduced tax rates must now disclose these benefits when filing their tax returns.
“Under the new tax law, if you operate a business as an enterprise and you enjoy certain incentives, you have the obligation to disclose those incentives,” he said.
“There’s a disclosure requirement for tax incentives that is not available to everybody as a general rule for taxpayers to disclose them when filing their tax returns or shortly after.”
The government says this measure is aimed at improving transparency and ensuring that tax incentives achieve their intended goals of promoting investment, job creation, and economic growth.
Taxes are a major source of funding for roads, schools, hospitals, and other public services. When citizens fail to pay or declare their taxes, the burden often falls on a small number of compliant taxpayers.
The federal government has repeatedly stated that widening the tax base, rather than increasing tax rates, is the preferred approach to boosting revenue.
Tax analysts believe that more public education is needed to change attitudes toward tax payment in Nigeria.
Many Nigerians still view taxes as a burden rather than a civic duty. Others distrust how tax money is used, which discourages compliance.
Oyedele urged Nigerians to see tax filing as a legal and civic responsibility, not an option.
As the March 31 deadline approaches, tax authorities are expected to intensify awareness campaigns and enforcement efforts to ensure more Nigerians comply with the law.