₦airaland Forum

helinues:
You can't run any business in Kenya without paying tax.

If you are running foods and drugs business, it's not even about the tax but scrutinizing before approval.

When we said things are just too easy in Nigeria, some people do t understand

BlackViper:
ria still has a long way to go to fulfil its tax revenue potential, but it has started the long walk there.

https://techcabal.com/2025/09/22/nigeria-tax-reform-vs-kenya-model/

BlackViper:
ria still has a long way to go to fulfil its tax revenue potential, but it has started the long walk there.

https://techcabal.com/2025/09/22/nigeria-tax-reform-vs-kenya-model/

BlackViper:
ria still has a long way to go to fulfil its tax revenue potential, but it has started the long walk there.

https://techcabal.com/2025/09/22/nigeria-tax-reform-vs-kenya-model/

BlackViper:
The problem of incompetence in tax collection is already raring its head again.

We have been told that the new tax regime will go into effect on the 1st of January 2026 and before then, everyone will be expected to already have a Tax Identification Number (TIN), but even as of now approaching the end of September, there is no single registration centre anywhere where one can get a T.I.N.

Are they now going to introduce registration centres at the 11th hour so people will be queueing for their T.I.N during the Christmas break because they want to beat the deadline of 1st January 2026?

To add insult to injury, they will still penalise you if you fail to acquire a T.I.N before the deadline.

Nigerians are watching and waiting.

BlackViper:
The problem of incompetence in tax collection is already raring its head again.

We have been told that the new tax regime will go into effect on the 1st of January 2026 and before then, everyone will be expected to already have a Tax Identification Number (TIN), but even as of now approaching the end of September, there is no single registration centre anywhere where one can get a T.I.N.

Are they now going to introduce registration centres at the 11th hour so people will be queueing for their T.I.N during the Christmas break because they want to beat the deadline of 1st January 2026?

To add insult to injury, they will still penalise you if you fail to acquire a T.I.N before the deadline.

Nigerians are watching and waiting.

Dalohad:
Tulumbu Agbadomudeens don come with propaganda..

How much oil does Kenya have?

BlackViper:
Kenya’s economy is $56.6 billion smaller than Nigeria’s, with a population of about a quarter of Africa’s most populous nation. Yet, the East African nation consistently collects more taxes.

The contrast could be due to structural weaknesses in Africa’s fourth-largest economy. For decades, Nigeria has relied on oil revenues, with tax revenues remaining among the lowest in the world, at less than 10% of GDP. By comparison, Kenya collects around 15% of its GDP in taxes.

Kenya’s GDP per capita of $2,470 outshines that of Nigeria ($806.84), which might explain some tax collection disparities.

Nigeria’s public finances remain exposed to oil price fluctuations, inflation, and rising debt costs. Kenya’s broader tax base has not eliminated these fiscal pressures, but it generates more relative to its size—an estimated $20 billion annually, compared to Nigeria’s target of about $12 billion in the next financial year.
Kenya’s approach

The Kenya Revenue Authority (KRA), the state agency responsible for tax collection, has built a diversified tax base, leveraging technology. The agency collects income tax, VAT, excise duties, customs revenues, and, more recently, digital service taxes.

Enforcement has been enhanced through electronic invoicing (eTIMS), mobile-based filing, and closer integration with banks and telecom operators. Mobile money platforms such as Airtel Money and M-Pesa, which handle transactions worth more than 50% of Kenya’s GDP annually, have expanded the taxable base by bringing more of the economy into formal financial channels.

This has resulted in steady growth in collections from KES 1.67 trillion ($12.9 billion) in FY2020/21 to KES 2.57 trillion ($20 billion) in FY2024/25, averaging over 11% annually. The tax-to-GDP ratio has remained around 14–15% in recent years, nearly double Nigeria’s 7–9%.

Part of Kenya’s edge comes from how far its taxman is willing to go. The Kenya Revenue Authority has built a reputation for mixing technology with old-fashioned snooping. Officers now scan social media to see if the lifestyles people flaunt online match what they declare on their tax returns. In a 2024 crackdown, more than 460 wealthy individuals were flagged for living large while paying little.

The agency has also gained access to payroll and payment records for civil servants and government suppliers, giving it another layer of visibility into incomes that might otherwise go under the radar. On the financial side, KRA has started linking its systems directly with banks and mobile money platforms like M-Pesa, which most Kenyans use daily. That makes it harder to hide money flows outside the tax net.

And the push doesn’t stop with traditional assets. Kenya is among the few countries in Africa moving to tax cryptocurrency transactions, with rules being drawn up to make sure crypto exchanges feed data straight into the revenue system. All of this has steadily expanded the pool of taxable activity — a big reason why Kenya manages to collect more revenue, despite being a much smaller economy than Nigeria.

To tighten compliance further, KRA has deployed a new class of field agents with paramilitary training known as Revenue Service Assistants (RSAs). Around 1,400 of them were trained to help with tax registration, verify taxpayer information, ensure traders issue proper receipts, and support the rollout of systems like eTIMS and iTax. These assistants also make physical visits to businesses to help them comply with excise and other regulatory requirements.

On the enforcement side, KRA has penalties for individuals or companies between KES 1,000 ($7.74) and KES 1 million ($7,740) for non-compliance. Tax compliance certificates are a requirement for people applying to government jobs, suppliers seeking contracts, and citizens running for public office.

Nigeria’s catch-up effort

Unlike Kenya, Nigeria has a trust deficit between the government and its citizens, who doubt that the government will spend funds wisely, due to documented cases of mismanagement.

“This leads to a high level of tax evasion and aggressive avoidance,” said Taiwo Oyedele, who now leads Nigeria’s tax reform efforts, in 2022.

Only about 10 to 12% of Nigerians pay tax, and just 9% of corporates comply. The International Monetary Fund (IMF) agrees that poor compliance and weak tax morale are major issues, but it also highlights Nigeria’s generosity with exemptions and low rates. In 2021 alone, ₦6.8 trillion ($4.57 billion) was foregone due to tax exemptions.

Also, the country’s VAT collection efficiency—the ratio of actual revenues to potential revenue— is among the lowest in Africa. It noted that the country can increase tax revenues if priority reforms are implemented. With oil revenues drying up, the government has taken this advice to ramp up tax collection efforts.

Non-oil tax collections increased to ₦15.94 trillion ($10.71 billion) in 2024 from ₦5.97 trillion ($4.01 billion) in 2022, mainly through VAT, corporate income tax, customs duties, and the electronic money transfer levy.

The government is now targeting ₦16.05 trillion ($10.79 billion) in 2025, ₦17.85 trillion ($11.99 billion) in 2026, and ₦19.73 trillion ($13.26 billion) in 2027.

To achieve these targets, new tax legislation signed in June 2025 increased capital gains tax from 10% to 30% for corporations, introduced progressive income tax brackets, and imposed taxes on crypto transactions.

In a separate policy document, the government outlined measures to expand VAT collection agents, simplify compliance, reduce tax expenditures, and employ technology to enhance transparency and enforcement.

The Federal Inland Revenue Service (FIRS), Nigeria’s tax collection agency, relies on its TaxPro Max, launched in 2021, to enable online filing and payments. Since August 1, 2025, large businesses with turnovers exceeding ₦5 billion ($3.36 million) must integrate their invoicing systems with the FIRS platform for real-time validation and reporting.



https://techcabal.com/2025/09/22/nigeria-tax-reform-vs-kenya-model/

BlackViper:
The problem of incompetence in tax collection is already raring its head again.

We have been told that the new tax regime will go into effect on the 1st of January 2026 and before then, everyone will be expected to already have a Tax Identification Number (TIN), but even as of now approaching the end of September, there is no single registration centre anywhere where one can get a T.I.N.

Are they now going to introduce registration centres at the 11th hour so people will be queueing for their T.I.N during the Christmas break because they want to beat the deadline of 1st January 2026?

To add insult to injury, they will still penalise you if you fail to acquire a T.I.N before the deadline.

Nigerians are watching and waiting.

CodeTemplarr:
The core reason we cannot be taxed anywhere near Kenyans is simple. Oil money. The availability of oil money from a small part of the country means theft or almost as good as free money. Now if free money is not managed well, how will the masses be encouraged to submit their sweat for mismanagement? How?

BlackViper:
The problem of incompetence in tax collection is already raring its head again.

We have been told that the new tax regime will go into effect on the 1st of January 2026 and before then, everyone will be expected to already have a Tax Identification Number (TIN), but even as of now approaching the end of September, there is no single registration centre anywhere where one can get a T.I.N.

Are they now going to introduce registration centres at the 11th hour so people will be queueing for their T.I.N during the Christmas break because they want to beat the deadline of 1st January 2026?

To add insult to injury, they will still penalise you if you fail to acquire a T.I.N before the deadline.

Nigerians are watching and waiting.

BlackViper:
The problem of incompetence in tax collection is already raring its head again.

We have been told that the new tax regime will go into effect on the 1st of January 2026 and before then, everyone will be expected to already have a Tax Identification Number (TIN), but even as of now approaching the end of September, there is no single registration centre anywhere where one can get a T.I.N.

Are they now going to introduce registration centres at the 11th hour so people will be queueing for their T.I.N during the Christmas break because they want to beat the deadline of 1st January 2026?

To add insult to injury, they will still penalise you if you fail to acquire a T.I.N before the deadline.

Nigerians are watching and waiting.

motymop:
i have a first hand experience on how they do it

if you are using a toll for instance, you dont pay cash, you use your phone and dail a code to pay, as you pass the toll, they will issue you the receipt.

They are actually very advanced when it comes to collecting tax.

every damn thing is taxed in that country.

ElSudani:
People don't pay their taxes based on whether their country produces oil or not.
Agbado this Agbado that and many of you have not paid a kobo in tax in their life.
If Tinubu is not sending free checks and gari to you then he is not doing anything.

Princedapace:
They dont have oil. They dont have abandunt resources. We have endlesss list of abundant resources. Our problem is wacky centralized system of govt that has made the sub states useless.
No matter how much Nigeria makes, if Nigeria fails to fix wacky electoral system, over centralized system, extreme corruption which all boils down to wacky political system because no president will try those who will help him rig election. If we dont fix these things and control our population, if u like pay tax from now till end of next year, it wont make any changes. It does not stop governors from looting the money. We were told that after subsidy removal, we will enjoy, how far, has anything changed? No, has health care gotten better? No, how aboyt our universities, do they now look like South African universities? No. How far our emergency services, are they now working? No. How security gotten better? No!
Sometimes, i feel blacks were designed to be lesser beings. If u dont fix the structural and root cause of ur problems, u cant make any progress.
Nigeria can work if we do these things:
First, fix political structure and allow states to make their own money and spend it in their states. States will learn to be competitive. No need to spoon feed anyone. Everyone hustle and harness the resources found in ur domain.
2: This will reudce the over I must be president and enable us fix electoral system which will help elect more credible and people oriented people.
3. The above will help reduce cost of running govt. The current system over pamper politicians. Damn, those guys are super rich. Maybe richer than Musk if we dont know. Naija politcians are swimming in free money.
4. If we decentralize our system, people will not weaponize population. This will enable regions and state only pursue efficient population systems.
5: Ban religion in schools, open and public places. Let build STEM Focused society.
6. Digitalize the public contract sytem, salary system, open the damn thing, work on the packages of politicians. Let money paid for contracts be used for the contract.
7. Cut down on population growth. These things will get Nigeria working within 2 years. No be by taxing me 30 percent of my income.

SmartPolician:
These APC people are coming up with a lot of BS to justify overtaxing Nigerians.

If the government wants to truly increase Nigeria's revenue though taxation, they should automate the process and compel all companies to pay taxes digitally.

Stop the analogue collection of taxes. Your workers are steàling the taxes.