ABUJA — The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said Nigeria's revenue challenge should be addressed primarily by expanding the tax base rather than increasing tax rates. Oyedele made the remarks during a meeting with the leadership of the Chartered Institute of Taxation of Nigeria in Abuja. The discussion came as Nigeria marked one year since President Bola Tinubu signed the country's tax reform laws. The minister's position reflects the government's broader effort to increase public revenue while limiting the burden on individuals and businesses that already comply with tax requirements. Nigeria's tax system has historically faced challenges involving a relatively narrow formal tax base, informal economic activity and uneven compliance. When a limited number of taxpayers provide a large proportion of revenue, compliant individuals and businesses can face greater pressure. Expanding the number of people and businesses participating in the tax system can potentially improve revenue without relying solely on higher rates. Increasing the tax base requires better identification of taxpayers, clearer rules and more efficient collection systems. Digital tools can help tax authorities identify economic activity and reduce opportunities for evasion. However, expanding the tax system must also consider the capacity of small businesses and low-income households. Tax policies that are difficult to understand or administer can discourage compliance. Public trust is therefore important. Taxpayers are more likely to comply when they believe that the system is fair and that government revenue is used responsibly. Tax awareness campaigns can help people understand their obligations. The Chartered Institute of Taxation of Nigeria has also played a role in public education about taxation. The National Tax Awareness Day activities included public sensitisation efforts designed to improve understanding of the tax system. For businesses, predictable tax administration is important for planning. Companies need to know what they owe and when payments are due. Complicated procedures can increase compliance costs, particularly for smaller enterprises. Simplifying processes can therefore support both businesses and government revenue. The informal sector presents another challenge. Many Nigerians earn income through small businesses and self-employment outside traditional payroll systems. Bringing more informal businesses into the tax net requires careful policy because excessive enforcement can harm vulnerable entrepreneurs. Authorities need systems that distinguish between businesses capable of contributing and individuals whose incomes are below taxable thresholds. Better data can help make that distinction. Nigeria's tax reforms are also connected to the government's broader fiscal strategy. Higher revenue can provide resources for infrastructure, education, healthcare and other public services. However, increased revenue alone does not guarantee better outcomes. Public spending must be transparent and efficient for taxpayers to see tangible benefits. The minister's emphasis on more taxpayers rather than higher rates therefore raises questions about both collection and accountability. If more Nigerians are brought into the tax system, they will expect government services to improve. Tax compliance can become more sustainable when citizens see a connection between what they pay and the services they receive. The government also needs to maintain clear communication about tax reforms. Confusion can create resistance and encourage misinformation. Businesses and individuals need accessible information about their obligations. Expanding the tax base is likely to remain a major part of Nigeria's fiscal policy as the government seeks more stable domestic revenue. The challenge will be to increase compliance without placing excessive pressure on households and businesses. A fair, transparent and efficient system could improve revenue collection while strengthening confidence in public finance.