The Head of Fiscal and Tax Reform Implementation, Femi Olarinde, has clarified that every Nigerian who earns an income has a legal and civic obligation to pay tax.

He made this assertion during the Tax Reform Masterclass for the Marketing Communication Industry at the National Advertising Conference 2025, organised by the Advertising Regulatory Council of Nigeria (ARCON). Olarinde explained that tax remains the primary tool through which the government funds essential projects that citizens cannot execute on their own.

Citing the Constitution, he referenced Section 24, which states that “every citizen must declare their income and pay the appropriate taxes to the relevant authorities.” He stressed that compliance is not optional but a constitutional duty.

Olarinde argued that consistent tax remittance would reduce Nigeria’s dependence on oil revenue and create a more stable and sustainable fiscal system. According to him, countries that maintain healthy economies do so through reliable tax structures, not volatile resource earnings.

Read also

ALSO WATCH MARKETING EDGE ONTV

He noted that the tax reforms introduced by President Bola Ahmed Tinubu aim to diversify national revenue and strengthen economic resilience. On 26 June 2025, the President signed four tax reform bills into law. These include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Act and the Joint Revenue Board Act.

Olarinde explained that the new tax framework, scheduled to take full effect in 2026, shifts attention toward gains and returns rather than capital assets. He noted that this approach aims to create a more balanced system that holds high earners accountable while still recognising people who are at the early stages of building income.

In a separate clarification, he reminded entrepreneurs that tax is drawn from profit, not from the total money a business receives. He urged new business owners to stay calm and focus on growing sustainably, while keeping in mind that once their ventures become profitable, tax compliance becomes a necessary responsibility.

Olarinde appealed to Nigerians to support government tax policies and align with global best practices. He emphasised that without public compliance, no tax reform can achieve its full economic impact.