Nigeria, with its legions of billionaires who own private jets and mansions home and abroad, can only boast of 214 individuals who pay up to N20 million personal tax income yearly. This is according to a report by TheCable.
At the current rates under the pay as you earn (PAYE) system, that means only 217 persons in Nigeria earn up to N105,500,000 per year — or less than N9 million per month.
In the financial and oil sectors alone, it is believed that there are thousands of managers and directors who earn more than N9 million a month. But these incomes are often hidden in a way to avoid paying taxes on them.
This suspicion has led to the introduction of a form of tax amnesty called Voluntary Asset and Income Declaration Scheme (VAIDS).
The government is targeting an additional $1 trillion tax revenue under VAIDS, it was announced on Thursday at the end of the meeting of the National Economic Council (NEC) chaired by Vice-President Yemi Osinbajo.