Taxation and incidence of mismanagement in Nigeria

By WILFRED OBIOTIKA 

Every precocious federation successful the satellite rose to prominence not simply due to the fact that of earthy resources, but done an businesslike strategy of taxation. Tolls, duties, customs, levies, and income taxes formed the backbone of the prosperity enjoyed by Europe, Asia, and the Americas today. Ironically, Nigeria, a onshore blessed with abundant resources, inactive struggles to execute this aforesaid prosperity due to the fact that our taxation systems, though existent, are undermined by corruption, mediocre management, and deficiency of accountability.

In truth, taxation is not an force of development—it is its precise foundation. Citizens successful progressive nations willingly question employment not conscionable for idiosyncratic comfort, but besides to lend to the payment of their federation done taxes. History adjacent records that Jesus of Nazareth—though a penniless teacher without wages oregon salary—still paid taxes successful obedience to the instrumentality of the land.

The caller taxation reforms introduced nether President Bola Ahmed Tinubu’s medication person sparked caller debate. Notably, Nigerians earning beneath N250,000 annually person been exempted from paying income tax. While this whitethorn look compassionate, it sadly reflects the heavy level of poorness and economical instability successful the country—that a immense colonisation falls beneath this income threshold and truthful cannot meaningfully lend to nationalist development.

Adding to this, the caller instauration of a 5 percent substance taxation and the request of a Tax Identification Number, TIN, for opening a savings relationship people a caller epoch of fiscal reforms. These policies are designed to broaden the taxation net, guarantee compliance, and trim the civilization of fiscal evasion. However, Nigerians stay skeptical: Will these taxes really construe into amended infrastructure, jobs, and societal services, oregon volition they extremity up arsenic different gross watercourse mislaid to corruption?

The information is that taxation successful itself is not the problem—leadership is. Many African nations, including Nigeria, bash not lag down due to the fact that their citizens garbage to wage taxes, but due to the fact that collected taxes are misused oregon outrightly stolen. Corruption, nepotism, and reckless looting person created a concern wherever roads stay bad, hospitals underfunded, and schools dilapidated—despite billions successful revenue. Examples of effectual usage of taxes tin beryllium seen person to home. As Governor of Anambra State, Professor Charles Soludo, demonstrated that with transparency and vision, taxes could beryllium transformed into large-scale improvement projects.

Roads, bridges, and municipality infrastructure flourished due to the fact that the people’s contributions were efficaciously managed. The aforesaid principle, if applied nationally, could assistance Nigeria from its contiguous economical stagnation. But past cautions us. From the epoch of subject dictatorships to the existent antiauthoritarian dispensation, the Nigerian Treasury has been treated similar idiosyncratic loot by successive leaders. Decades aft discovering oil, we person small to amusement compared to nations similar the United Arab Emirates, Malaysia, and Singapore—countries with less oregon nary earthy resources but stronger taxation systems and enactment discipline.

The projected implementation of the caller taxation bills successful January 2026 raises further questions. Will this betterment simply recycle aged methods nether caller names, oregon volition it people a genuine departure from wasteful governance? Will the Treasury yet beryllium protected from “light-fingered” politicians oregon volition past repetition itself?

Nigeria erstwhile pinned its hopes connected the Single Treasury Account introduced nether President Muhammadu Buhari successful 2016, which promised to artifact leakages and amended efficiency. Yet, adjacent that betterment became much of a blueprint than a revolution, arsenic corruption recovered caller avenues. Citizens truthful interest that caller taxation reforms, including the substance levy and TIN requirement, whitethorn again service the elite alternatively than the people.

We indispensable remember: taxation is not a punishment, but a societal contract. Citizens contribute, and successful return, governments supply infrastructure, education, healthcare, and security. In developed countries, taxes money everything from societal payment to cutting-edge research. But here, the reverse seems true—citizens pay, yet are forced to physique backstage schools, drill idiosyncratic boreholes, and prosecute backstage security.

Nigeria’s taxation reforms should not go different Pyrrhic victory. If decently implemented, they could spark the improvement we desp...