“Paying Tax Is Not Enough”: FG Issues Urgent Warning to Nigerians as Filing Deadlines Close In
- The federal government has warned Nigerians about the importance of filing annual tax returns alongside tax payments
- Taiwo Oyedele highlighted low compliance rates, with fewer than five per cent filing annual returns in many states
- He further said that upcoming deadlines could result in penalties while strerssing that compliance culture needs to improve
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As critical tax deadlines draw near, the federal government has issued a stern warning to Nigerians, stressing that paying taxes alone does not fulfil legal obligations. Employers and individuals must also file annual tax returns or face possible penalties.
The warning came from Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, who expressed concern over Nigeria’s persistently low tax compliance rate.
Source: Twitter
Low compliance rate raises alarm
Speaking during a webinar for HR managers, payroll officers, chief finance officers, and tax professionals, Oyedele described the situation as “deeply alarming,” noting that in many states, fewer than five per cent of eligible taxpayers file annual returns.
According to him, the widespread belief that Pay-As-You-Earn (PAYE) deductions automatically settle all tax responsibilities has significantly worsened compliance levels.
PAYE deductions do not end tax obligations
“Paying tax is not the same as filing tax returns,” Oyedele warned. “Even when taxes have been deducted at source, the law still requires both employers and employees to file annual returns. That obligation has not changed.”
He stressed that filing returns remains compulsory under both existing and reformed tax laws.
Key deadlines Nigerians must not miss
Oyedele reminded employers that they are required to submit annual tax returns for their employees by January 31, while individual taxpayers must file their self-assessment returns by March 31.
Failure to meet these statutory deadlines, he cautioned, could attract penalties, audits, and reputational damage under Nigeria’s tightening tax regime.
Disclosure applies to all, including incentive beneficiaries
He explained that filing tax returns is a core disclosure requirement that enables tax authorities to accurately assess compliance. This obligation, he noted, applies to low-income earners, businesses enjoying tax incentives, and organisations operating under special concessions.
“Even when you benefit from exemptions or incentives, you must still declare them,” Oyedele said.
Government moves to simplify tax filing
Oyedele attributed weak compliance partly to poor awareness and the perceived 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 procedures and simplify filing.
“In many states, more than 90 per cent of eligible taxpayers have not filed returns,” he revealed, highlighting the scale of the challenge.
Non-compliance to attract penalties under reforms
Under the Federal Government’s tax reform agenda, transparency and disclosure will take centre stage, making it increasingly risky for individuals and businesses to remain outside the tax system.
Oyedele warned that non-compliance could lead to penalties, audits, and increased scrutiny from tax authorities.
FG urges Nigerians to act before deadlines
With only days left before key deadlines expire, Oyedele urged employers, entrepreneurs, and professionals to act quickly.
He added that filing returns also helps taxpayers reconcile projected earnings with actual income, reducing disputes and future liabilities.
Source: Twitter
“The goal is not punishment,” he concluded. “It is about building a culture of responsibility, transparency, and trust.”
Webinar part of broader tax education drive
The webinar forms part of ongoing efforts by the Federal Government to deepen tax education, boost voluntary compliance, and strengthen revenue mobilisation across Nigeria’s formal and informal sectors.
What employers must know as PAYE filing deadline nears
Legit.ng earlier reported that as the deadline for filing annual Pay-As-You-Earn (PAYE) returns approached, employers across Nigeria were under renewed pressure to comply with the country’s updated tax framework.
January once again emerged as a critical compliance month, particularly under the newly introduced tax reforms that reshape personal income tax administration.
Speaking during a media briefing, Tokunbo Akande, special adviser to the executive chairman of the Lagos State Internal Revenue Service (LIRS), clarified filing obligations, addressed concerns over penalties and Tax Identification Numbers, and dispelled widespread misconceptions about the new regime.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
