Tax Reforms and Nigeria’s Political Crossroads: The urgency of inclusive leadership, by Hassan Ahmad
At no other time in Nigeria’s democratic journey has the nation faced a more delicate intersection of survival and direction. The country is battling economic hardship, rising insecurity, social discontent, and a widening trust deficit between the government and the governed. Yet, amidst these challenges, our leaders seem preoccupied with politicking and positioning for the 2027 general elections, ignoring the urgent need for national healing and sustainable governance.
Central to the present conversation is the issue of tax reform—a policy area with immense potential for good if managed properly, or catastrophic consequences if mishandled. President Bola Ahmed Tinubu’s administration has rightly identified taxation as a critical lever for national revenue generation in the face of dwindling oil earnings. But the reform must be rooted in fairness, transparency, and accountability. Otherwise, it will deepen the suffering of the masses and provoke unrest.
The Nigerian Tax Puzzle: Equity or Extortion?
Taxation, in any functioning democracy, is not merely a tool for income. It is a social contract—a give-and-take between the people and the state. Citizens pay taxes with the understanding that those resources will be used to provide quality education, healthcare, infrastructure, security, and opportunities for all. But in Nigeria today, this contract is severely broken.
Across the federation, ordinary Nigerians—traders, artisans, civil servants, transporters, and small business owners—are being squeezed by multiple and sometimes duplicative taxes. From Value Added Tax (VAT) to withholding tax, vehicle registration fees to property levies, not to mention rising electricity tariffs and soaring food prices—life has become unbearable for the average citizen. Meanwhile, the wealthy elite, including some politicians and influential corporations, find ways to evade or manipulate the system.
This imbalance fuels resentment and damages the moral foundation of governance. If reforms are truly meant to expand the tax base and enhance compliance, then justice must lead the process. The government must introduce a progressive tax structure that ensures those who earn more, contribute more. Tax waivers and incentives must be targeted at productive sectors like agriculture, education, and local manufacturing, not luxury imports or crony-driven enterprises.
Furthermore, digital multinationals making billions in Nigeria must be brought into the net. With the right legislation, effective tracking technology, and the political will to confront entrenched interests, Nigeria can collect more from those who have long escaped civic responsibility.
Governance Without Accountability
One of the biggest reasons for public resistance to taxation in Nigeria is the perceived lack of accountability. Nigerians are not fundamentally opposed to paying tax. What they are opposed to is watching their hard-earned money end up in the private pockets of officials through bloated contracts, ghost projects, abandoned infrastructure, and needless luxury.
READ ALSO: Nigeria’s Power Theatre 2027: Between hypocrisy and hope, by Ahmad Shuaibu Isa
As it stands, Nigeria spends a disturbing portion of its budget on debt servicing, recurrent expenditures, and political overhead. Ministries, Departments, and Agencies (MDAs) continue to operate with minimal transparency, while the National Assembly’s oversight function is weakened by partisanship and vested interests. Until the people see a clear and visible impact from their contributions, taxes will continue to be viewed as extortion rather than nation-building.
It is not enough to demand “sacrifices” from citizens while government officials fly private jets, drive convoys of exotic cars, and live extravagantly. The leadership must lead by example, cut down on waste, and channel funds toward impactful projects that touch the lives of the common man.
2027: The Dangerous Distraction
While the economic situation worsens, a disturbing number of political actors have shifted attention from governance to the next general election. Political realignments, party zoning arguments, and behind-the-scenes manoeuvring now dominate the headlines, at the expense of real solutions.
This early and selfish politicking sends a dangerous signal to Nigerians: that power, not service, remains the highest goal of public office. What we need today is a leadership culture that prioritises the present—fixing roads, improving schools, paying salaries, empowering women and youth, and addressing insecurity—before campaigning for the future.
READ ALSO: Nigeria’s Power Theatre 2027: Between hypocrisy and hope, by Ahmad Shuaibu Isa
It is high time Nigeria moved from transactional politics to transformational leadership. Public offices should be platforms for stewardship, not stepping stones for personal empires.
The Way Forward
To reposition Nigeria and win back public trust, urgent steps must be taken:
1. Institutionalise Fair Taxation: Introduce and enforce progressive taxation. Expand digital tax infrastructure. Punish evasion decisively.
2. Link Taxes to Tangible Development: Create a feedback loop between taxes and visible outcomes—schools, hospitals, jobs, roads.
3. Cut Government Waste: Reduce unnecessary political appointments, excessive travel allowances, and duplicative agencies.
4. Empower Local Governments: Restore full autonomy and funding to local governments to drive grassroots development and accountability.
5. Engage Citizens in Policy Conversations: Use town halls, media, and civil society to ensure policies reflect people’s voices.
6. De-emphasise 2027 Politics: Let the focus remain on delivering governance today. Elections will come, but hunger, insecurity, and unemployment cannot wait.
Conclusion
Nigeria does not lack resources or intelligent citizens. What it lacks is the political will to reform with compassion and integrity. Tax reform is necessary, but it must be anchored on equity, transparency, and empathy for the people. Political leadership must shift from personal ambition to national interest. Only then can we build a country that works for all.
As we navigate these turbulent waters, one truth remains constant: no nation survives on taxation alone. It survives on trust, unity, and responsible leadership. Let us rebuild the trust before asking for more sacrifices.
Hassan Ahmad writes from Wuse Zone 6, Abuja.
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