Economist Urges Inclusion of Religious Institutions in Nigeria’s Tax Net

An economist, Daramola Omoyele, has called on the federal government to bring religious institutions under the new tax framework, stressing that efforts to reform the system would fail without fairness and accountability.

Speaking in an interview with the News Agency of Nigeria (NAN) on Wednesday, Omoyele said the recently introduced Nigeria Tax Administration Act (2025)—which unifies tax identification, enforces stricter compliance, and introduces new levies—was a positive step toward broadening the country’s tax base.

He commended the government for raising the personal income tax exemption threshold to ₦800,000 per annum to protect low-income earners but cautioned that the policy may still overburden ordinary Nigerians.

“In practice, many will still face multiple local levies, consumption taxes, and other indirect charges that drive up the cost of living,” he said.

Omoyele criticised the continued exclusion of religious organisations from taxation, describing it as a major loophole in the reform.

“In today’s Nigeria, it is almost impossible to separate many pastors or imams from their ministries. Some of these leaders are wealthier than the institutions they lead, owning luxury cars, private jets, and mansions while their congregations struggle to survive,” he said.

He alleged that certain religious leaders exploit their followers, using faith as a cover to amass wealth without accountability.

“Many Nigerians are more willing to pay tithes, offerings, or sow seeds than to pay taxes. Through these religious payments, some leaders have built vast personal empires, while ordinary citizens bear the cost of public services. This is not merely a spiritual matter—it is an economic one,” Omoyele added.

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