The National Orientation Agency (NOA) has urged Nigerians to fulfil their tax obligations, stating that tax compliance provides citizens with the moral and legal basis to demand accountability from government.
This position was expressed by a Programme Officer of the agency, Abiodun Olayeni-Ali, during an interactive session at the maiden edition of Civic Talks organised by the Centre for Inclusive Social Development in Abuja.
According to Olayeni-Ali, citizens who do not contribute to government revenue through taxes may find it difficult to legitimately question how public funds are used.
She noted that taxation plays a vital role in funding public services such as schools, healthcare facilities and infrastructure.
Olayeni-Ali also expressed concern that a significant number of Nigerians do not pay taxes, explaining that the burden of taxation is largely carried by civil servants and a limited number of salaried employees in the formal sector.
She further alleged that some companies manipulate payroll records in order to reduce the amount of tax deducted from workers’ salaries.
The NOA official disclosed that the agency has commenced nationwide sensitisation campaigns to educate citizens about the country’s new tax reforms and counter misinformation surrounding the policy.
She explained that the agency operates offices across all 774 local government areas in Nigeria, using community meetings, radio programmes and stakeholder engagements to reach the public.
According to her, participants at these programmes are encouraged to pass the information on to members of their communities.
The sensitisation effort is also part of broader initiatives to rebuild trust between citizens and government through the National Value Charter programme.
During the session, business owners and informal sector operators, including POS operators, electricians and plumbers, raised concerns about how the new tax reforms could affect their livelihoods.
Some participants argued that many small traders and transport operators already earn very little after accounting for fuel costs, maintenance expenses and other operational challenges.
Others expressed scepticism about paying taxes, saying many Nigerians do not see tangible benefits from government services.
There were also questions regarding confusion around the reforms, including uncertainty about whether the policy had been suspended and how the proposed presumptive tax system would work for informal sector operators.
Responding to the concerns, a Senior Programme Officer at the International Budget Partnership, Iniobong Usen, said the reforms aim to correct structural weaknesses in Nigeria’s tax system.
According to him, the previous tax framework placed heavier burdens on low-income earners while wealthier individuals often paid far less than expected.
He explained that the new personal income tax structure seeks to reduce pressure on low- and middle-income earners while increasing tax contributions from higher-income individuals.
Usen also said the reforms propose a presumptive tax system in which small business operators who do not maintain detailed financial records may pay about one percent of their turnover as tax.
The reforms are also designed to tackle the issue of multiple taxation and illegal levy collection.
Usen noted that individuals who harass business owners or unlawfully collect levies could face fines of up to ₦5 million or a prison sentence of three years.
A tax consultant and Managing Partner at Lefort Consulting Limited, Toyin Olufon, said the widespread national debate about the reforms shows growing public interest in fiscal policy.
She explained that personal income tax applies to individuals and sole proprietors, while company income tax applies to registered limited liability companies.
According to Olufon, businesses with an annual turnover below ₦100 million and net assets below ₦250 million are exempt from company income tax in order to allow small businesses grow.
She also highlighted the consolidation of several existing taxes into a single development levy of four percent, designed to simplify compliance for businesses.
Another tax consultant, Telvin Inalegwu, emphasised that improved accountability would depend on citizens actively monitoring government spending.
He noted that taxes fund government budgets but many Nigerians rarely track how public funds are allocated or used.
In June 2025, President Bola Ahmed Tinubu signed four major tax reform bills into law, including the Nigeria Tax Act, aimed at modernising Nigeria’s tax system and improving fiscal sustainability.
