The Ministry of Finance is reportedly drafting a Wealth Tax bill targeting Nigerians with assets above N5 billion, including luxury real estate and private jets, as part of a drive to increase non-oil revenue.
The government says the proposal is designed to fund social safety nets and reduce the budget deficit without raising burdens on poorer citizens, with projections of significant annual revenue if implementation is effective.
Business groups have raised concerns about capital flight and compliance complexity, while experts warn the policy only works if authorities can accurately track luxury holdings and offshore assets.
Echotitbits take: Bold, controversial, and easy to politicize. The wealthy are skilled at loopholes, so enforcement capacity will determine success. Without credible asset tracking and compliance systems, the tax risks becoming symbolic—or investment-deterring.
Source: BusinessDay – https://businessday.ng/business-economy/article/fg-proposes-25-tax-rate-on-wealthy-nigerians-earning-n100-million-monthly/ 2026-01-27
Photo Credit: BusinessDay
