ICAN Says Tax Evasion Causes Low Revenue in Nigeria

The Institute of Chartered Accountant of Nigeria, ICAN, has said that there is low tax revenue in Nigeria because most people evade tax.

During the 2022 Budget Symposium organized by ICAN,  ICAN said:" Despite controlling land and key taxes such as PIT, Stamp Duties, Property taxes, 85% VAT, share of FAAC , revenue performance at the states level remains abysmal.               

At the Symposium, ICAN Vice President  Dr Innocent Okwuosa, who represented the ICAN President said one of the critical challenges facing the tax system in Nigeria is the shocking high level of non-compliance as a result of low tax morale".                      

He said Tax Morale is the willingness to comply with taxes and the belief that tax evasion is wrong.                        

He advocate the use of technology for tax Intelligence to expand the tax net, create prosperity, convert informal and implicit taxes, rebalance the tax burden.

He noted that the true cost of petrol subsidy is under-reported.

He said there seems to be a bigger challenge regarding budget discipline and accountability at the state level.

"Local government level is virtually non-existent in terms of budget transparency subnational budgets of sharing and “hand to mouth”.


 He emphasised that total debt of states by end of 2020 stood at N4.2 trillion (Lagos 532b, Akwa Ibom 235b, Rivers 226b, Delta 207b, Ogun 192b).

"It is necessary to focus on states and LGs budgets as much as that of the Federal Government

"Good governance and right tone from the top is required to improve fiscal position.

"Nigeria needs to budget better and spend more efficiently for the greater good of the country.

In his remarks, the 1st Deputy Vice President, ICAN & Chairman, Technical, Research & Public Policy Committee, Chief D.C.S. Alaribe, FCA said the annual event of the Institute contributes to improving the country’s budget processes and strengthening the fiscal framework of the nation.

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