The National Orientation Agency has said Nigerians must fulfil their tax obligations before demanding accountability from the government, stressing that tax compliance gives citizens the moral and legal standing to question how public resources are used.
A Programme Officer at the agency, Mrs Abiodun Olayeni-Ali, stated this on Thursday, March 12, 2026, during an interactive session at the maiden edition of Civic Talks organised by the Centre for Inclusive Social Development in Abuja.
According to her, citizens who do not contribute to government revenue through taxes cannot legitimately demand explanations from public officials.
“You have to pay your tax before you can hold the government accountable. If you are not paying tax, it becomes difficult to question what the government is doing,” she said.
Olayeni-Ali lamented that many Nigerians do not pay taxes, noting that the responsibility is largely borne by civil servants and a limited number of salaried workers.
“The majority of Nigerians do not pay tax. It is mostly civil servants and a few employees in some companies that actually pay tax in this country,” she added.
She also alleged that some companies manipulate payroll records to reduce the amount of tax deducted from their employees.
According to her, the NOA has launched nationwide sensitisation campaigns to educate citizens on the new tax reforms and address widespread misinformation that followed the announcement of the policy.
She explained that the agency operates offices across all 774 local government areas of the country and conducts public enlightenment through community meetings, radio programmes and stakeholder engagements.
Participants at such engagements, she said, are encouraged to further disseminate the information within their communities.
Olayeni-Ali acknowledged that public mistrust of government remains widespread but emphasised that citizens should recognise that many public services are funded through taxes.
She cited government schools, public hospitals and other services as examples of facilities supported through public spending.
She added that the agency’s ongoing engagements also form part of broader efforts to rebuild trust between citizens and government through the National Value Charter initiative.
At the event, business owners and informal sector operators — including POS operators, electricians and plumbers — expressed concerns about the practical impact of the new tax reforms on already strained livelihoods.
Some participants noted that drivers and small traders often earn little after accounting for fuel, maintenance and other operating costs, questioning how they would cope with additional tax obligations.
Others also expressed scepticism about tax compliance, arguing that many Nigerians see limited visible benefits from government services.
Participants further highlighted confusion surrounding the reforms, including uncertainty about whether the policy had been suspended and how the proposed presumptive tax for the informal sector would operate.
Responding to the concerns, a Senior Programme Officer at the International Budget Partnership, Mr Iniobong Usen, said the tax reforms were designed to correct structural weaknesses in Nigeria’s fiscal system.
According to him, the previous tax framework placed heavier burdens on low-income earners while wealthy individuals often paid little or no tax.
“Our tax system was regressive. The poorest and most vulnerable carried the highest burden, while the richest people did not pay their commensurate taxes,” he said.
Usen explained that the new personal income tax structure aims to reduce pressure on low- and middle-income earners while increasing contributions from higher-income individuals.
He added that the reforms also introduce a presumptive tax system to simplify taxation for informal sector operators who do not maintain proper financial records.
“For people who run small businesses but cannot keep records, the government proposes that they pay about one per cent of their turnover as tax,” he said.
Usen further noted that the reforms seek to eliminate multiple taxation and curb illegal levy collections from businesses.
“If you harass anyone to collect any levy, fee or tax illegally, the offender could face a fine of up to N5m or imprisonment for three years,” he said.
A tax consultant and Managing Partner at Lefort Consulting Limited, Ms Toyin Olufon, said the nationwide debate that followed the announcement of the reforms reflected growing public interest in fiscal policy.
Although the discussions were initially marked by panic and misinformation, she described the public engagement as a positive development.
“The fact that Nigerians asked questions and engaged with the issues shows that we are on the right track,” she said.
Olufon explained that personal income tax applies to individuals and sole proprietors, while company income tax applies to businesses registered as limited liability companies.
She also highlighted provisions in the new framework aimed at supporting business growth, noting that companies with annual turnover below N100m and net assets below N250m are exempt from company income tax.
“That threshold allows small businesses to grow before they begin paying company income tax,” she said.
She added that several existing taxes have been consolidated into a single development levy of four per cent, simplifying compliance for businesses.
Olufon also pointed to the introduction of electronic invoicing as a transparency measure in the value-added tax system.
“The e-invoicing system allows transactions to be transmitted directly to the tax authority. It will make it easier to verify VAT payments and process refunds,” she said.
Another tax consultant, Mr Telvin Inalegwu, said accountability would improve only if citizens actively monitor government spending.
“The taxes we are discussing fund the national budget, but many Nigerians do not follow how the budget is implemented,” he said.
He urged citizens to track public projects and procurement processes to ensure that allocated funds are used for their intended purposes.
“If we pay taxes and monitor the budget, we will better understand what belongs to us,” he added.
In June 2025, President Bola Tinubu signed four major tax reform bills into law, including the Nigeria Tax Act and related statutes aimed at overhauling decades-old tax laws and modernising Nigeria’s tax system.
