Why Nigerians Don’t Trust The New Tax Laws
Why Nigerians Are Pushing Back Against New Tax Laws
NIGERIA’S new tax laws were officially slated to take effect on January 1, but rather than signalling a smooth reform process, their rollout has ignited intense resistance, scepticism and debate across economic, legal and civic spaces. From labour activists and civil society groups to economists and political actors, many Nigerians are questioning not only the timing of the implementation but also the legality, transparency and intent behind it.
At the heart of the controversy lies a deep trust deficit between citizens and the state—a problem no tax reform can ignore.
Legality and the Crisis of Confidence
One of the strongest criticisms has come from Chief Martin Onovo, a petroleum engineer, former presidential candidate and policy strategist with the Movement for Fundamental Change. Onovo argues that the laws being implemented lack legitimacy, insisting that what is being enforced is not what was passed by the National Assembly.
According to him, a law must reflect exactly what legislators approved, not what he describes as “unlawfully proposed or forged” versions. He points to resistance from the House of Representatives, objections from civil society organisations, and court actions initiated by citizens as evidence that the process was fundamentally flawed.
While the government has since claimed to revert to the legislature-approved version, apprehension persists. For critics like Onovo, the issue is not merely procedural but moral. He argues that Nigerians are being asked to contribute more financially at a time when government spending appears wasteful and corruption allegations remain unresolved.
A Working-Class Perspective
Veteran labour activist Baba Aye situates the controversy within a broader ideological framework. From his standpoint, the new tax regime is not just about revenue but about deepening capital accumulation at the expense of the working class.
He traces the roots of the reforms to decades of neo-liberal economic policies dating back to the structural adjustment era of the 1980s. In his view, ordinary Nigerians are being squeezed to sustain an economic model that prioritises extraction over welfare, leaving workers with diminishing purchasing power and rising living costs.
Economic Reform or Policy Confusion?
Economist and former World Bank consultant Professor John Ebhomien offers a more balanced assessment. While acknowledging the government’s stated goal of simplifying taxation and easing the burden on low-income earners, he admits that implementation has been riddled with challenges.
Digital bottlenecks, slow tax portals, registration difficulties and data verification issues have frustrated users. More critically, widespread public confusion persists, especially among small business owners uncertain about compliance requirements and timelines.
Ebhomien also highlights allegations that the gazetted laws contain provisions never approved by parliament—a claim that raises constitutional concerns and reinforces public mistrust.
What the Government Says the Laws Do
Defenders of the reform argue that the tax laws are progressive. According to Bishop Herbert Ekechukwu, an economist and cleric, individuals earning ₦800,000 or less annually are exempt from personal income tax, while small businesses with turnovers below ₦100 million are excluded from company income tax.
Higher earners, he explains, are expected to shoulder a greater share, with a top marginal rate of 25 percent for individuals earning above ₦50 million annually. The intention, at least on paper, is to protect vulnerable groups while broadening the tax base.
Yet even Ekechukwu concedes that inadequate public sensitisation has fuelled misunderstanding. Many Nigerians, he notes, are hearing about the reforms for the first time, while others lack clarity on compliance procedures.
Taxation and Governance: The Missing Link
Human rights activist Dr. Rexkennedy Saltlove underscores a key point often overlooked in the debate: taxation itself is not the problem. The real issue, he argues, is governance.
According to him, citizens are more willing to pay taxes when they see tangible benefits—functional infrastructure, job creation, security and transparent use of public funds. In the absence of these, taxation feels punitive rather than patriotic.
Saltlove credits the Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, for sustained public engagement and efforts to clarify grey areas. He also notes that court rulings striking out legal challenges have helped clear procedural hurdles.
Still, the broader challenge remains unresolved. Nigerians are being asked to trust a system that has historically failed to justify that trust.
A Reform at a Crossroads
The resistance to Nigeria’s new tax laws reflects more than opposition to fiscal policy. It exposes deep anxieties about accountability, fairness and leadership credibility. Until government convincingly addresses these underlying concerns, tax reform—no matter how well designed—will continue to face pushback.
