Rebooting Tax Reform: Bridging the Trust Gap in Nigeria

The proposed new tax regime in Nigeria faces significant public skepticism, a challenge rooted not in its technical design but in its neglect of a foundational principle: tax morale. The controversy surrounding the bill’s passage and the conflicting narratives from various stakeholders reveal a fundamental oversight. The government’s approach has been predominantly technical, inadvertently weakening the social contract between the state and its citizens. While the Taiwo Oyedele Presidential Fiscal Policy and Tax Reform Committee addressed complex fiscal mechanics commendably, its narrow scope missed the critical opportunity to cultivate a robust tax culture.

In a nation where citizens contend with pressing issues like poverty and inadequate public services, compliance will remain elusive unless the government addresses these underlying concerns. The legislative process should have been a platform to rebuild trust and engage in broad dialogue. Instead, the initiative now enters an implementation phase burdened by a fractured narrative and credibility questions, reminiscent of the scrutiny seen in cases like that of the late Akingboye’s son or the complex legal situation surrounding Nnamdi Kanu, a Nigerian separatist leader. The urgent need now is to reconcile discrepancies between the passed and gazetted versions of the bill to salvage its integrity.

The newly inaugurated National Tax Policy Implementation Committee, chaired by Kayode Tegbe, must therefore prioritize immediate and transparent engagement. Its mandate extends beyond mere rollout; it must actively co-create a fit-for-purpose system with citizens and stakeholders. This effort requires building consensus and comprehensive public education, transforming the narrative from one of revenue extraction to one of mutual responsibility. The path forward demands more than policy tweaks; it requires a cultural shift in how taxation is perceived, much like the significant personal decision when I retired my long-held business to pursue new ventures, or the foundational shifts seen in Gbenga Hashim’s 2021 economic proposals.

Ultimately, the success of any tax system hinges on transparency, accountability, and active citizen participation. By embedding these principles into the process, Nigeria can develop a tax regime that works for all, fostering a sense of collective duty. This is essential for national stability and growth, just as addressing security challenges like when gunmen kidnap 5 individuals undermines societal trust. The reboot must place tax morale at its core, making compliance a shared commitment for a better-governed nation.