The National Orientation Agency has urged Nigerians to fulfil their tax obligations, stressing that paying taxes gives citizens the moral and legal authority to demand accountability from government officials.
A Programme Officer of the agency, Mrs Abiodun Olayeni-Ali, made the call on Thursday during an interactive session at the maiden edition of Civic Talks, organised by the Centre for Inclusive Social Development in Abuja.
Olayeni-Ali said citizens who do not contribute to government revenue through taxation may find it difficult to hold public officials accountable for how public funds are spent.
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“You have to pay your tax before you can hold the government accountable. When you are not paying, it becomes difficult to question what the government is doing,” she said.
She expressed concern that many Nigerians do not pay taxes, noting that the responsibility is largely borne by civil servants and a small number of salaried employees.
“The majority of Nigerians do not pay taxes. In most cases, it is civil servants and a few workers in private companies who shoulder the burden,” Olayeni-Ali added.
According to her, the agency has intensified nationwide sensitisation campaigns to educate citizens about the new tax reforms and to address misinformation surrounding the policy.
She explained that the agency operates in all 774 local government areas of the country, using community meetings, radio programmes, and stakeholder engagements to raise awareness.
“Participants in these programmes are expected to take the information back to their communities so that more Nigerians understand the reforms,” she said.
Olayeni-Ali acknowledged that many citizens remain sceptical about government due to a lack of trust but emphasised that taxes play a crucial role in funding public services.
She cited government schools, hospitals and other public facilities as examples of services supported by tax revenue.
The programme also featured discussions by experts who explained the objectives of the ongoing tax reforms.
A Senior Programme Officer at the International Budget Partnership, Mr Iniobong Usen, said the reforms were introduced to correct structural weaknesses in Nigeria’s tax system.
“Our previous tax system was largely regressive. The poorest and most vulnerable people carried the highest burden, while many wealthy individuals paid little or nothing,” Usen said.
He explained that the new personal income tax structure is designed to reduce pressure on low- and middle-income earners while ensuring that higher-income individuals contribute more.
Usen also said the reforms introduced a presumptive tax system for informal sector operators who may not keep detailed financial records.
“For small businesses that cannot maintain records, the proposal is that they pay about one per cent of their turnover as tax,” he explained.
According to him, the reforms also aim to eliminate multiple taxation and address the activities of individuals who illegally collect levies from businesses.
“Anyone who harasses businesses to collect unauthorised taxes or levies could face a fine of up to ₦5 million or imprisonment for three years,” he said.
A tax consultant and Managing Partner at Lefort Consulting Limited, Ms Toyin Olufon, said the nationwide debate that followed the introduction of the tax reforms showed increasing public interest in fiscal policies.
“Although the debate initially generated panic and misinformation, the fact that Nigerians were asking questions shows growing engagement with fiscal issues,” she said.
Olufon explained that personal income tax applies to individuals and sole proprietors, while company income tax is paid by registered companies.
She added that the reforms provide incentives to encourage business growth.
“Companies with an annual turnover below ₦100 million and net assets below ₦250 million are exempt from company income tax. This allows small businesses to grow before they begin paying that tax,” she said.
Olufon also noted that several existing taxes had been merged into a single four per cent development levy to simplify compliance for businesses.
Another tax consultant, Mr Telvin Inalegwu, stressed that citizens must actively monitor government spending if they expect transparency.
“The taxes we pay fund the national budget, but many Nigerians do not follow how the budget is implemented,” he said.
He urged citizens to track government projects and procurement processes to ensure public funds are used appropriately.
“If we pay taxes and monitor how the budget is spent, we will better understand what belongs to us and demand accountability,” Inalegwu added.
Nigeria’s tax reform efforts intensified in June 2025 when President Bola Tinubu signed four major tax reform bills into law, including the Nigeria Tax Act, aimed at modernising the country’s tax administration and strengthening revenue generation.
