Informal levies hit 67% of households despite tax reforms
- ✦“If citizens are encouraged to enter the formal tax net, the government must also ensure they are not simultaneously subjected to informal levies that often cost more than formal taxes,” Oladele said.
- Nigeria’s efforts to simplify its tax system face an implementation challenge as 67.2 percent of households encounter informal levies, raising concerns that overlapping charges could undermine the relief promised by the country’s new tax laws.
- For businesses, the burden extends beyond formal tax obligations, with 13.9 percent of surveyed firms reporting exposure to illegal charges.
- “If citizens are encouraged to enter the formal tax net, the government must also ensure they are not simultaneously subjected to informal levies that often cost more than formal taxes,” Oladele said.
Nigeria’s efforts to simplify its tax system face an implementation challenge as 67.2 percent of households encounter informal levies, raising
Frequently Asked Questions About This Story
What is the latest development regarding Federal Capital Territory?
Nigeria’s efforts to simplify its tax system face an implementation challenge as 67.2 percent of households encounter informal levies, raising concerns that overlapping charges could undermine the relief promised by the country’s new tax laws.
Who are the key organizations or public figures mentioned?
The primary parties identified in this coverage include Federal Capital Territory, Tax Reform & Fiscal Policy, Lagos State.
What timeline or key figures were confirmed?
The finding, contained in the Nigeria Economic Summit Group’s (NESG) Tax Perception Survey 2026, highlights the persistence of informal collections even as the government seeks to harmonise taxation, reduce multiple levies, and improve compliance under the new tax regime.
