A new report by Oxfam has revealed a tax avoidance rate among Nigeria’s wealthiest citizens, with over 99% of the richest individuals skipping taxes, while millions of Nigerians especially women and girls face extreme poverty and hunger.
The report, titled “Income and Wealth Inequality in Nigeria: Trends and Drivers,” was unveiled at a press conference on Tuesday in Abuja, where Oxfam called for urgent tax reforms and increased social investment to address the nation’s growing inequality crisis.
The report stressed that out of Nigeria’s wealthiest elite, only 40 individuals were found to be paying taxes, representing a compliance rate of just 0.035%, according to the Federal Inland Revenue Service, FIRS and John Bean Technologies Corporation, JBT.
This means that 99% of the country’s richest citizens are evading their tax obligations, depriving the nation of much-needed revenue for critical services such as healthcare, education, and infrastructure development.
While tax evasion among the rich continues to widen the wealth gap, the most vulnerable segments of society women and girls are disproportionately affected.
The report reveals that 63% of the 133 million Nigerians currently facing hunger are women and girls.
In rural areas, women and girls are further disadvantaged by a lack of access to education, with a literacy rate of just 35%, compared to 59.5% for men.
The gender gap is not just limited to education. Access to healthcare, land, and economic opportunities is also severely restricted for women.
With growing food insecurity and the rising cost of living, Oxfam warns that unless immediate action is taken, the situation will worsen for Nigeria’s female population.
Oxfam is calling on the Nigerian government to implement a progressive wealth tax aimed at high-net-worth individuals. The organization estimates that a 1% tax on net assets worth over $1 million could generate up to $7.5 billion annually.
This amount could significantly bolster Nigeria’s social sector spending, reducing household health expenditures by up to 40% and providing essential funding for education and social welfare programmes that primarily benefit women and girls.
Oxfam’s Country Director for Nigeria, John Makina, emphasized the urgency of addressing the inequality crisis, stating, “While millions of women and girls are struggling to afford basic necessities, Nigeria’s super-rich continue to amass wealth without paying their fair share. This is not just an economic issue; it is a social crisis that threatens the stability of our society.”
Despite being Africa’s fourth-largest economy, Nigeria ranks among the most unequal countries in sub-Saharan Africa. The country’s wealth Gini coefficient, a measure of income inequality, stands at 35.1, placing it 11th out of 16 West African countries.
According to Oxfam, the concentration of wealth among a small elite has left millions in poverty, with rural women and girls being the most affected by the country’s widening economic divide.
The report calls for the Nigerian government to take immediate action by increasing social spending in critical sectors such as healthcare, education, and agriculture, while also prioritizing the needs of women and girls in rural areas.
Oxfam recommends that social sector spending be increased to at least 10% of the national budget to provide better access to services that can uplift the most vulnerable groups.
Additionally, Oxfam has urged the establishment of a national wealth registry to ensure transparency in tax compliance and the creation of a fairer tax system that will contribute to reducing inequality and supporting Nigeria’s long-term development.
Also speaking, Regional Director, West Africa- Oxfam International, Assalama Sidi, said,”Inequalities are rising everywhere in West Africa and Africa, including Nigeria.
“But when we examine the government’s budget allocation for social services, basic rights for women, children, and the most vulnerable, the situation becomes even more alarming.
*The government invests only 5-7% of its budget in social services to ensure that vulnerable people have access to education, healthcare, and social protection.
“If we look at the inequalities, we see major disparities between the wealthy and the average person living in difficult conditions. There are also inequalities between men and women, as well as between the southern and northern regions of Nigeria. Statistics show that the majority of poor people, including unemployed youth, are from the northern region.”
On his part, “Lead author of the report and Oxfam’s Accountable Governance Programme Manager, Henry Ushie,
stressed that the current tax system is flawed, allowing wealthy individuals to avoid taxes through legal loopholes and a lack of transparency in tax enforcement.
“It’s time for Nigeria to take bold steps towards reforming its tax laws. A progressive wealth tax is a crucial first step in addressing the structural inequalities that are leaving women and girls behind.”
