The National Orientation Agency (NOA) has urged Nigerians to meet their tax obligations before demanding accountability from the government, noting that paying taxes gives citizens both the moral and legal right to question how public funds are spent.
A Programme Officer at the agency, Abiodun Olayeni-Ali, made this known on Thursday during an interactive session at the maiden edition of Civic Talks organised by the Centre for Inclusive Social Development in Abuja.
She explained that citizens who do not contribute to government revenue through taxes may find it difficult to legitimately demand accountability from public officials.
“You have to pay your tax before you can hold the government accountable. If you are not paying taxes, it becomes difficult to question what the government is doing,” she said.
Olayeni-Ali lamented that many Nigerians fail to pay taxes, adding that the responsibility largely falls on civil servants and a limited number of salaried workers.
“Most Nigerians do not pay taxes. It is mainly civil servants and a few employees in some companies that actually shoulder the burden,” she stated.
She also alleged that some companies manipulate payroll records to reduce the amount deducted as tax from employees’ salaries.
According to her, the agency has begun nationwide sensitisation campaigns to educate citizens about the country’s new tax reforms and counter misinformation that followed the announcement of the policy.
She explained that the agency operates offices in all 774 local government areas across the country, using community meetings, radio programmes and stakeholder engagements to raise awareness.
Participants in these programmes are encouraged to pass the information on within their communities.
While acknowledging the widespread mistrust of government, Olayeni-Ali emphasised that taxes are essential for funding public services such as schools, hospitals and infrastructure. She added that the engagement campaign also forms part of broader efforts to rebuild trust between citizens and government through the National Value Charter initiative.
During the session, business owners and operators in the informal sector — including POS agents, electricians and plumbers — raised concerns about the possible impact of the new tax reforms on their livelihoods.
Some participants argued that drivers and small traders already earn very little after deducting fuel, maintenance and other operational costs, questioning how they would cope with additional tax responsibilities.
Others expressed doubts about tax compliance, noting that many Nigerians see little visible benefit from government services.
Participants also cited confusion surrounding the reforms, including uncertainty about whether the policy had been suspended and how the proposed presumptive tax system for the informal sector would function.
Responding to the concerns, a Senior Programme Officer at the International Budget Partnership, Iniobong Usen, said the reforms were designed to address structural weaknesses in Nigeria’s fiscal system.
According to him, the previous tax structure placed heavier burdens on low-income earners while wealthier individuals often paid little or no tax.
“Our tax system was regressive. The poorest and most vulnerable people carried the highest burden, while the richest often paid far less than they should,” he said.
Usen explained that the new personal income tax structure is intended to ease the burden 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 tax payments for informal sector operators who do not keep formal financial records.
“For small business owners who cannot maintain records, the government proposes that they pay about one per cent of their turnover as tax,” he said.
Reforms Target Multiple Taxation
Usen further noted that the reforms aim to eliminate multiple taxation and clamp down on individuals who illegally collect levies from businesses.
“If anyone harasses a business owner to collect any levy, fee or tax illegally, the person could face a fine of up to ₦5 million or a three-year jail term,” he said.
He, however, stressed that citizens must also take a more active role in governance if they want improved accountability.
A tax consultant and Managing Partner at Lefort Consulting Limited, Toyin Olufon, said the nationwide debate triggered by the reforms reflects growing public interest in fiscal policies.
She said that although the reforms initially caused panic and misinformation, the level of public engagement was encouraging.
“The fact that Nigerians asked questions and engaged with the issues shows that we are moving in the right direction,” she said.
Olufon clarified that personal income tax applies to individuals and sole proprietors, while company income tax is imposed on registered limited liability companies.
She also highlighted measures aimed at encouraging business growth, noting that companies with annual turnover below ₦100 million and net assets under ₦250 million are exempt from company income tax.
“That threshold gives small businesses the opportunity to grow before they begin paying company income tax,” she said.
Olufon also disclosed that several existing taxes have been merged into a single development levy of four per cent to simplify compliance for businesses.
She further pointed to the introduction of electronic invoicing as a key transparency measure in the value-added tax system.
“The e-invoicing system allows transactions to be transmitted directly to the tax authority, making it easier to verify VAT payments and process refunds,” she explained.
Another tax consultant, Telvin Inalegwu, said accountability in the tax system would only improve 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 added that citizens rarely track public projects or verify whether allocated funds are used for their intended purposes.
“If we pay taxes and also monitor the budget, we will better understand what belongs to us,” he said.
In June 2025, Bola Tinubu signed four major tax reform bills into law, including the Nigeria Tax Act and other related statutes aimed at modernising Nigeria’s tax system and replacing decades-old tax laws.