Femi Olarinde (Head of Fiscal & Tax Reform Implementation) said: “Once you earn an income, you must pay tax.”
He made this remark during a Tax Reform Masterclass at the National Advertising Conference (NAC), organized by ARCON (Advertising Regulatory Council of Nigeria).
His argument paying tax is not optional but a constitutional duty. He referenced Section 24 of the Nigerian Constitution, which mandates citizens to declare income and pay appropriate taxes.
He stresses that consistent tax remittance is vital for reducing Nigeria’s over-reliance on oil revenue, and for building a more stable, diversified fiscal system.
According to him, the new tax reforms (from recent bills) are meant to shift focus toward gains and returns, rather than capital assets.
He also clarified that for business owners, tax is on profit, not on total revenue: only when a venture becomes profitable does the obligation to pay tax in earnest kick in.
The new tax framework is scheduled to take full effect in 2026.
Several tax reform bills have recently been signed into law (per his statement). Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act, Joint Revenue Board Act.
These reforms are designed to make the system more “balanced,” holding higher earners more accountable while still accounting for people in earlier stages of business growth.
Olarinde appealed to Nigerians to support the new tax policies, warning that without broad compliance, the reforms cannot deliver their intended economic impact.
He linked the importance of tax compliance to global best practices and sustainable development: governments rely on tax revenue to deliver projects and services that individuals cannot provide on their own.
Some Nigerians are likely worried that the “once you earn” message means an expanded tax net, perhaps capturing more informal or low-income earners.
There’s always skepticism about how tax revenues are used; people may ask. If I pay more tax, will I see better infrastructure, education, health services?
The shift in tax law (with the new bills coming) is quite significant. Some business owners, especially new entrepreneurs, might be nervous about what “profit” means in their context for tax calculation.
That this message came at an advertising industry conference (NAC) suggests ARCON is not just regulating adverts, but also playing a part in broader fiscal education / reform. This might surprise or unsettle industry players.
Olarinde is clearly pushing for greater tax compliance as part of a broader reform agenda. His framing that paying tax is a constitutional duty is meant to normalize taxation, not just for big corporations but for anyone earning.
The reforms coming in 2026 may widen the tax base, but with a potentially fairer structure: taxing returns and gains rather than just assets could make tax more progressive (if implemented well).
For business owners, his reassurance that tax will be on profit, not gross revenue is important. It suggests the policy isn’t trying to penalize cash flow, but successful businesses.
However, the success of this push will depend a lot on public trust people need to believe their taxes will be used wisely. Without that, compliance may remain low despite the legal duty.
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