The Oxfam International in Nigeria and the Civil Society Legislative Advocacy Centre (CISLAC) have said that implementing a progressive wealth tax could enable Nigeria to generate over $7.5bn annually.

Country Director of Oxfam International in Nigeria, John Makina; and Executive Director of CISLAC, Auwal Musa Rasfanjani, said this on Tuesday in Abuja at the formal launch of the ?Fair Tax Monitor Index/Wealth Taxation Report? and ?Income and Wealth Inequality in Nigeria: Trends and Drivers,? with the theme ?Taxing the Rich Fair Tax Monitor?.

Makina said there is the urgent need for tax reform, especially that millions of Nigerians are trapped in poverty, while a small elite continues to accumulate wealth without paying their fair share of taxes.

?Implementing a progressive wealth tax could generate over $7.5bn annually. This revenue would be sufficient to double the government?s current health budget or reduce household out-of-pocket health expenditures by 40 per cent, significantly easing the financial burden on millions of Nigerians,? Makina said.

He said Nigeria?s complex tax laws and lack of transparency enable this inequality, depriving the nation of crucial revenue needed for social protection and initiatives aimed at reducing poverty.

The reports, covering 10 years, on taxation, said despite being the fourth-largest economy in Africa, the benefits of economic growth have largely been concentrated in the hands of a small elite, leaving millions of Nigerians trapped in poverty.

He also said only 40 per cent of the wealthiest Nigerians were found to be compliant taxpayers, according to the Federal Inland Revenue Service (FIRS) and John Bean Technologies Corporation, representing a compliance rate of just 0.035%, meaning that over 99 per cent of Nigeria?s wealthiest citizens evade or avoid paying taxes.

He said, ?Over 133 million people, about 7 in 10, are facing hunger, with women and girls disproportionately affected, making up nearly 63% of the hungry population. In rural areas, less than 40% of households have access to electricity, severely limiting educational opportunities and access to healthcare.?

The report recommended for the Nigerian government include raising social sector spending to at least 10 per cent of the national budget in health, education, and agriculture, and implementing a 1 per cent wealth tax on individuals with net worth exceeding $1m.

It also recommend improving human capital development, supporting smallholder farmers, reforming land policies, and collaborating with civil society organisations to promote pro-poor policies.

Rafsanjani on his part, said as Nigeria continues to confront deep socioeconomic challenges, with over half of our population living in poverty, the need for tax reforms to fund essential services has never been more pressing.

Nigeria faces an annual financing shortfall of over $10 billion to meet its Sustainable Development Goals (SDGs).

?The time for change is now, and there is no room for delay. Nigeria?s tax system must evolve into a powerful tool for equitable development, compelling the wealthy to pay their fair share while easing the disproportionate burden on the most vulnerable,? Rafsanjani said. (Daily Trust: Text, Excluding Headline)

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