The National Orientation Agency has said Nigerians must meet their tax obligations before demanding accountability from the government, noting that paying taxes gives citizens both the moral and legal authority to question how public funds are managed.
A Programme Officer at the agency, Abiodun Olayeni-Ali, made this known on Thursday during an interactive session at the maiden edition of Civic Talks organised by the Centre for Inclusive Social Development in Abuja.
She explained that citizens who do not contribute to government revenue through taxes are not in a strong position to demand explanations from public officials.
“You have to pay your tax, and then you can hold your government accountable. Once you are not paying, it is difficult for you to really talk. If you are not paying tax, you have no right to ask what the government is doing”, she said.
Olayeni-Ali expressed concern that a large proportion of Nigerians do not pay taxes, adding that the responsibility is mostly borne by civil servants and a small group of salaried employees.
“The majority of Nigerians do not pay tax. It is civil servants and a few people working in some companies that really pay tax in this country”, she said.
She also alleged that some companies manipulate payroll structures to reduce the amount of taxes deducted from workers.
According to her, the National Orientation Agency has begun nationwide sensitisation campaigns to inform citizens about the new tax reforms and address misinformation that followed the announcement of the policy.
She explained that the agency operates offices in all 774 local government areas across the country and carries out public enlightenment through community engagements, radio programmes and meetings with key stakeholders.
Olayeni-Ali added that participants at such programmes are encouraged to pass the information on to others within their communities.
While acknowledging the widespread mistrust of government, she said Nigerians must understand that many public services are partly funded through taxes.
She cited government hospitals, public schools and other services as examples of programmes supported by public spending.
She further explained that the agency’s public engagement efforts are also part of a wider initiative to rebuild trust between citizens and government through the National Value Charter.
Business owners and operators in the informal sector, including POS agents, electricians and plumbers who attended the event, raised concerns about how the new tax reforms could affect already struggling livelihoods.
Some participants noted that drivers and small traders often make little profit after accounting for fuel, maintenance and other operational expenses, questioning how they would cope with additional tax payments.
Others also expressed doubts about tax compliance, arguing that many Nigerians see limited evidence of benefits from government services.
Participants also pointed out confusion surrounding the reforms, including uncertainty about whether the policy had been suspended and how the proposed presumptive tax for the informal sector would be implemented.
Responding to these concerns, a Senior Programme Officer at the International Budget Partnership and public financial management expert, Iniobong Usen, said the tax reforms were designed to address structural problems in Nigeria’s fiscal system.
He explained that the previous tax structure placed heavier pressure on low-income earners while wealthy individuals often contributed little.
“Our tax system was regressive. The poorest and the most vulnerable carried the highest burden while the richest people did not pay their commensurate taxes”, he said.
Usen said the new personal income tax structure aims to ease the burden on low- and middle-income earners while increasing contributions from higher-income individuals.
He added that the reforms also introduced a presumptive tax system intended to simplify taxation for informal sector operators who do not keep financial records.
“For people who run small businesses but cannot keep records, the government proposes that they pay about one per cent of their turnover as tax,” he said.
According to him, the reforms are also meant to eliminate multiple taxation and stop individuals who illegally collect levies from businesses.
“If you harass anybody to collect any levy, fee or tax, you can face a fine of up to N5m or imprisonment for three years,” he said.
Usen emphasised that citizens must become more involved in governance processes if they want greater accountability.
A tax consultant and Managing Partner at Lefort Consulting Limited, Toyin Olufon, said the nationwide debate that followed the announcement of the tax reforms reflected increased public interest in fiscal policy.
Although the initial discussions were marked by panic and misinformation, she described the engagement as a positive development.
“The fact that Nigerians were asking questions and engaging with the issues showed that we are on the right track,” she said.
Olufon explained that personal income tax applies to individuals and sole proprietors, while company income tax is paid by firms registered as limited liability companies.
She also pointed out provisions in the new tax framework designed to support business growth.
According to her, companies with an annual turnover below N100m and net assets under N250m are exempt from company income tax.
“That threshold creates room for small businesses to grow before they begin paying company income tax,” she said.
She also said several existing taxes have been merged into a single development levy of four per cent to simplify compliance for businesses.
Olufon highlighted the introduction of electronic invoicing as another measure aimed at improving transparency in the value-added tax system.
“The e-invoicing system allows transactions to be transmitted directly to the tax authority. It will make it easier to verify VAT payments and process refunds”, she said.
Another tax consultant, Telvin Inalegwu, said accountability in taxation would improve if citizens closely monitored government spending.
“The tax we are talking about is what funds the budget,” he said. “But Nigerians do not follow the budget.”
He added that citizens rarely track public projects or confirm whether funds allocated to them are used properly.
Inalegwu urged Nigerians to pay closer attention to public budgets and procurement processes, noting that such oversight is necessary to prevent misuse of public funds.
“If we pay taxes and follow the budget, we will know what belongs to us,” he said.
He also said that maintaining proper documentation and financial records would help businesses benefit from available tax reliefs and credits.
According to him, stricter penalties introduced under the reforms would help improve compliance, while automation of the tax system would reduce abuse and enhance transparency in revenue collection.
In June 2025, Bola Tinubu signed four major tax reform bills into law, including the Nigeria Tax Act, which together overhaul long-standing tax laws and modernise the country’s tax system.
