S.O.S ALIEME

The Federal Government has been tagged the ‘tax collector’ by the poor masses.  During campaigns to the most exalted position in Nigeria, politicians promised to make life easy for the masses and that the poor will have the opportunity to breathe. But reverse is the case as policies that will kill the masses are being rolled out every day by the government.

Every economic step that Nigerians are taking is attached to one form of tax or the other.  You want to recharge your phone with credit, you must pay tax.  You want to buy data, you must pay tax. You want to buy fuel either for the car or for the generator, you must pay tax. You keep your hard earned money in the bank you must pay tax otherwise you won’t have access to it. Every aspect of human endeavour in Nigeria is taxed.  So, tell me what the government provides as free for Nigerians to enjoy.

Adding to this, the recent introduction of a five per cent fuel tax and the requirement of a Tax Identification Number (TIN) for opening a savings account mark a new era of fiscal reforms. These policies are designed to broaden the tax net, ensure compliance, and reduce the culture of financial evasion. However, Nigerians remain sceptical: will these taxes actually translate into better infrastructure, jobs, and social services, or will they end up as another revenue stream lost to corruption?

Although, every advanced nation in the world rose to prominence not merely because of natural resources, but through an efficient system of taxation. Tolls, duties, customs, levies, and income taxes formed the backbone of the prosperity enjoyed by Europe, Asia, and the Americas today. Ironically, Nigeria, a land blessed with abundant resources, still struggles to achieve this same prosperity because our tax systems, though existent, are undermined by corruption, poor management, and lack of accountability.

In truth, taxation is not an enemy of development—it is its very foundation. Citizens in progressive nations willingly seek employment not just for personal comfort but also to contribute to the welfare of their nation through taxes. The truth is that taxation in itself is not the problem, leadership is. Many African nations, including Nigeria, do not lag behind because their citizens refuse to pay taxes, but because collected taxes are misused or out-rightly stolen. Corruption, nepotism, and reckless looting have created a situation where roads remain bad, hospitals are underfunded, and schools are dilapidated, despite billions in revenue.

But history cautions us. From the era of military dictatorships to the current democratic dispensation, the Nigerian Treasury has been treated like personal loot by successive leaders. Decades after discovering oil, we have little to show compared to nations like the United Arab Emirates, Malaysia, and Singapore—countries with fewer or no natural resources but stronger tax systems and leadership discipline.

The proposed implementation of the new tax bills in January 2026 raises further questions. Will this reform merely recycle old methods under new names, or will it mark a genuine departure from wasteful governance? Will the Treasury finally be protected from “light-fingered” politicians, or will history repeat itself? Nigeria once pinned its hopes on the Single Treasury Account introduced under President Muhammadu Buhari in 2016, which promised to block leakages and improve efficiency. Yet, even that reform became more of a blueprint than a revolution, as corruption found new avenues.

Citizens, therefore, worry that new tax reforms, including the fuel levy and TIN requirement, may again serve the elite rather than the people. We must remember: taxation is not a punishment but a social contract. Citizens contribute, and in return, governments provide infrastructure, education, healthcare, and security.

In developed countries, taxes fund everything from social welfare to cutting-edge research. But here, the reverse seems true—citizens pay, yet are forced to build private schools, drill personal boreholes, and hire private security. Nigeria’s tax system is facing a critical dilemma: while the country grapples with a growing population and an expanding public sector, citizens and businesses are increasingly burdened by excessive taxes. Despite the numerous tax policies aimed at boosting government revenue, the system is plagued by inefficiencies, corruption, and poor service delivery, leaving taxpayers frustrated and disillusioned. The high tax rates across various sectors—ranging from income tax to VAT—coupled with a lack of corresponding benefits, have sparked widespread debate about the fairness of the Nigerian taxation system. Nigerians, especially the middle class and small-to-medium-sized businesses, are feeling the weight of over-taxation, and the social consequences are becoming more evident every day.

Nigeria needs a tax system that fosters fairness, transparency, and sustainability—one that can provides the necessary infrastructure, healthcare, education, and security that every Nigerian citizen deserves.  Taxation is undeniably a cornerstone of governance and nation-building, but in Nigeria, over-taxation has become a double-edged sword. While taxes are necessary for funding public services and infrastructure, the excessive and often poorly coordinated levies at different levels of government have stifled economic growth, burdened citizens, and eroded trust in the government.

The Nigerian government must rethink its approach to taxation by addressing the systemic issues driving over-taxation. This includes simplifying the tax system, ensuring fair and equitable tax policies, and promoting transparency and accountability in the use of tax revenues. By doing so, the government can rebuild public trust and encourage compliance, ultimately creating a more sustainable and inclusive economy. As taxpayers, citizens also have a role to play in holding the government accountable. Advocacy for tax justice, civic engagement, and demand for better service delivery are essential to driving the reforms needed for a fairer tax system. Nigeria’s future depends on a balanced approach to taxation—one that promotes development without sacrificing the welfare of its people. Nigeria’s tax reforms should not become another Pyrrhic victory. If properly implemented, they could spark the development we desperately need. If not, they risk fuelling public distrust and deepening the gap between government and people. Ultimately, taxation must serve as a passport to national progress, not a toll to enrich the few. Only when transparency, accountability, and visionary leadership guide our tax system will Nigeria’s immense potential finally be unlocked.

God Bless Nigeria!!!