Taxing High Net Worth Individuals in Nigeria: Preliminary Insights and the Case of Borno State

This paper gives preliminary insights into the challenges surrounding the taxation of high net worth individuals (HNWIs) in Nigeria – first in general terms, and then with a specific focus on Borno State. The need to diversify revenue sources has become increasingly apparent against the backdrop of Nigeria’s historical reliance on the export of crude oil, and is the reason why President Tinubu created a committee to harmonise the fiscal system. However, the committee has not yet touched upon the taxation of HNWIs.

Drawing from key informant interviews from north-eastern Nigeria, and a two-day workshop with officials from State Boards of Internal Revenue Service from various part of the country, we shed light on the complexities of increasing the compliance of HNWIs. The study highlights a series of legal, administrative, and political obstacles faced by State Boards of Internal Revenue Service, which have developed dedicated compliance strategies. Many of these are similar across states that otherwise share few characteristics. The paper ends with some tentative suggestions for future research.

Summary of ICTD Working Paper 188.