NOA urges Nigerians to pay taxes to demand accountability

The National Orientation Agency has urged Nigerians to fulfil their tax obligations, noting that compliance strengthens citizens’ ability to demand accountability from government.

A Programme Officer of the agency, Mrs Abiodun Olayeni-Ali, stated this during an interactive session at the maiden edition of Civic Talks organised by the Centre for Inclusive Social Development in Abuja.

She explained that paying taxes gives citizens both the moral and legal standing to question how public resources are utilised.

Olayeni-Ali lamented that many Nigerians do not pay taxes, adding that the responsibility is largely borne by civil servants and a small number of salaried workers in the private sector. She also alleged that some companies manipulate payroll records to reduce the taxes deducted from their employees.

According to her, the agency has begun nationwide sensitisation campaigns to educate citizens on new tax reforms and address misinformation that followed the announcement of the policy.

She noted that the NOA operates offices in all the 774 local government areas of the country and carries out public enlightenment through community engagements, radio programmes, and stakeholder meetings.

Olayeni-Ali acknowledged the widespread mistrust of government but explained that taxes partly fund public services such as schools, hospitals and other social amenities. She added that the sensitisation campaign forms part of efforts to rebuild trust between citizens and government under the National Value Charter initiative.

Business owners and informal sector operators, including POS operators, electricians, and plumbers, raised concerns over the possible effects of the tax reforms on their livelihoods.

Some participants explained that many drivers and small traders earn little after deducting fuel, maintenance and other operational costs, questioning how they would meet additional tax obligations.

Responding to the concerns, a Senior Programme Officer at the International Budget Partnership, Mr Iniobong Usen, explained that Nigeria’s tax reforms were designed to address structural weaknesses in the country’s fiscal system.

He noted that the previous tax framework placed heavier burdens on low-income earners while many wealthy individuals paid little or no tax.

Usen explained that the new personal income tax structure aims to reduce pressure on low- and middle-income earners while increasing contributions from higher-income individuals.

He added that the reforms also introduce a presumptive tax system for informal sector operators who do not maintain financial records, requiring them to pay about one per cent of their turnover as tax.

According to him, the reforms also seek to eliminate multiple taxation and curb the activities of individuals who illegally collect levies from businesses, warning that offenders could face fines of up to N5m or three years’ imprisonment.

A tax consultant and Managing Partner at Lefort Consulting Limited, Ms Toyin Olufon, noted that the nationwide debate following the announcement of the reforms reflected 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 firms. She added that companies with annual turnover below N100m and net assets below N250m are exempt from company income tax under the new framework.

Olufon further explained that several existing taxes have been consolidated into a single development levy of four per cent to simplify compliance for businesses.

She also highlighted the introduction of electronic invoicing as a transparency measure in the value-added tax system, noting that it allows transactions to be transmitted directly to tax authorities, making it easier to verify VAT payments and process refunds.

Another tax consultant, Mr Telvin Inalegwu, urged citizens to become more involved in monitoring government spending.

He explained that taxes fund the national budget but noted that many Nigerians do not track public projects or verify whether allocated funds are used for their intended purposes.

Inalegwu added that improved documentation and record-keeping would help businesses benefit from available tax reliefs and credits, while stricter penalties and automation in the tax system would enhance compliance and transparency.

In June 2025, President Bola Tinubu signed four tax reform bills into law, including the Nigeria Tax Act, aimed at modernising the country’s tax system and replacing decades-old statutes.

Written by Adeyemi Adewale