Much has been said and is being said about the Federal Government’s controversial tax reforms. They got off to a very bad start when some legislators claimed that the version of the law passed by the National Assembly was not the same as the document President Tinubu signed.
Ali Ndume, the former Senate Leader, is one of the “rebels” who complained about tampering by the executive arm and has pointed out that even the chairman of the presidential committee on tax reform, Taiwo Oyedele, has admitted the existence of “differentials.”
Then there are those who criticize the new tax law for other reasons.
I, meanwhile, don’t see why ordinary Nigerians should pay any tax at all.
My position has always been that successive administrations don’t have a moral right to tax revenue because they have never properly accounted for oil revenue or provided the general public with adequate services that reflect the billions of petrodollars they have collected.
Long story short, numerous government officials have mismanaged or stolen so much oil money and left us with lousy hospitals, schools, etc.
As they send themselves and their families abroad to enjoy elite foreign educations and expensive medical treatment, the average Nigerian is suffering under the yoke of extreme deprivation. Some are even dying because of the absence of decent healthcare facilities.
And don’t get me started on the bad roads, pathetic railway system, endless electricity outages, low life expectancy and security nightmares so acute that President Trump is threatening to intervene!
Given all of the above, it is outrageous for this government to harass us for more cash. It feels like highway robbery and human rights abuse. And I am simply not willing to pay tax I can ill afford to pay.
MOGHALU’S TAKE
Professor Kingsley Moghalu, a former presidential election candidate and CBN deputy governor, recently appeared on BBC TV to discuss tax matters. I respect his erudition and socio-economic analyses, so have transcribed his interview for Vanguard readers:
BBC INTERVIEWER: And to Nigeria now, where the government is forging ahead with the implementation of new sweeping tax laws despite growing opposition. The reforms which took effect from the first of January, are part of efforts to boost revenue and stabilise Africa’s largest economy, but critics warn that the timing could deepen hardship for households already battling high inflation and a rise in cost of living. I spoke to…Professor Moghalu and asked him why this government is pushing new tax laws in spite of the public outcry?
MOGHALU: Yes, historically, Nigeria has had a very low level of tax revenue to GDP ratio. Nigeria’s current ratios are at about 10%, whereas the general range in African countries is 15–18%, and for many developed countries the average is about 34–35%. So the whole premise is that governments raise revenue through taxes. Nigeria has been borrowing very heavily. It had shortfalls in the main revenue earner, which is oil revenue, and so the government felt that they needed to reform the tax system to raise a lot more revenue.
BBC: Help us understand what the most significant differences between the version of the tax law that was signed into effect and the one that was passed by the lawmakers, that has elicited quite some conversations.
MOGHALU: The most important challenge that the new tax law has faced is the challenge of the legitimacy of the process of bringing it into being. There are quite a number of differences between what the legislature passed and what was included in the gazette of what was published.
First of all, there are four tax laws, it is not just one law. The main problems that have been identified include illegal insertions or alterations in the gazetted versions.
For example, there is in the gazetted version a requirement for a 20% deposit to be paid by anyone or entity appealing for tax decisions. This is alleged not to be in the original version. There are also in the gazetted version expanded enforcement powers that give extensive powers to garnish accounts, to seize assets without court orders, and to conduct enforcement sales of assets without Court orders. Now this is quite serious. There are also tax computations of petroleum operations which are now required to be in U.S. Dollar. But the original version did not require a U.S. Dollar mandatory currency.
BBC: In Kenya two years ago, there were some tax laws that proved unfavourable and led to protests. Are there concerns about legal battles and political instabilities in Nigeria as a result of these tax laws?
MOGHALU: I think you can expect both legal and political challenges to the tax laws in this year 2026 and it could become a very big wedge Issue and could have a significant impact on the political season, the elections of 2027 that we are moving towards. So l would not be surprised if we begin to see protest or a lot of legal action. The Nigerian Bar Association, for example, has condemned these alterations and I’m following them…
Since I have a penchant for troublemaking, I intend to participate in the anti-tax protests, individually as well as via my social media platforms, including Opposition Unleashed, my new Twitter or X Space(@donukogbara every Monday night at 8pm, Nigerian time). I’m even ready to go to jail. Â
Watch this space!
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