Reported by: Ijeoma G | Edited by: Gabriel Osa
ABUJA, Nigeria — Opposition voices and civil society commentators have intensified criticism of President Bola Ahmed Tinubu’s economic reform agenda, warning that an expanding tax regime could deepen financial strain on ordinary Nigerians already grappling with rising costs of living and sluggish economic recovery.
At the centre of the debate is the newly enacted tax framework introduced as part of the government’s broader fiscal strategy. The legislation — comprising four landmark bills assented by Tinubu in June 2025 — is intended to modernise Nigeria’s tax system, eliminate multiple taxation, harmonise revenue administration and broaden the tax base ahead of full implementation in 2026. However, while the presidency and financial authorities defend the reforms as necessary to boost revenue and reduce dependence on borrowing, critics say the practical effect has increased pressure on citizens and businesses struggling under economic uncertainty.
Under Tinubu’s tax regime, Nigeria’s tax-to-GDP ratio climbed from below 10 per cent to around 13.5 per cent, a figure that government officials describe as a positive step toward fiscal sustainability — part of efforts to mobilise domestic resources for infrastructure, social services and debt management. Authorities argue the tax changes will expand the base and provide relief to low-income earners through targeted exemptions, while reducing nuisance taxes that previously hampered compliance.
Despite official assurances, dissenting voices have criticised the pace and impact of the tax reforms, arguing that the additional burden falls disproportionately on ordinary Nigerians amid high inflation and weakened purchasing power. Opponents point out that the broader economic environment — including rising business costs, increased tariffs on services, and slower wage growth — has heightened public sensitivity to taxation. Some civil society commentators contend that, while the tax structure aims to align Nigeria with international standards, its rollout has not fully considered the lived realities of taxpayers confronting persistent economic hardship.
Political figures allied to opposition parties have also leveraged the issue in public discourse. The Peoples Democratic Party (PDP) and other critics have accused the government of prioritising revenue generation over citizens’ welfare, arguing that the implementation of the tax laws should be paused to reassess its implications on households and small businesses. They have called for greater transparency and possible rescission of provisions perceived as unjust or overly burdensome.
Some lawmakers have gone further, urging a temporary suspension of the tax law’s implementation amid claims of discrepancies between the version passed by the National Assembly and the gazetted text now being enforced. This legislative tussle adds another layer of complexity to the broader tax debate, raising concerns about regulatory legitimacy and public confidence in fiscal policymaking.
Supporters of the reform, including presidential advisers and revenue officials, maintain that the changes will ultimately reduce overlapping taxes and streamline the country’s revenue system. They emphasise exemptions designed to cushion vulnerable groups — such as zero VAT on food and basic services — while shifting tax obligations more equitably toward high-income earners and larger corporations. Proponents also argue that a broader tax base will enhance the government’s ability to fund critical infrastructure, social services and safety nets without overreliance on external borrowing.
Economic analysts note that Nigeria’s fiscal position — with domestic revenue historically low compared with peer economies — necessitates deeper reforms to ensure long-term sustainability. However, they also caution that timely and transparent communication, paired with targeted relief measures, is essential to mitigate the short-term pressures felt by households and small businesses. The balance between revenue mobilisation and economic resilience remains a central concern in ongoing public and policy debates.
As Nigeria heads toward the 2027 general election cycle, public sentiment on taxation, cost of living, and economic management is expected to play a significant role in political discourse, with critics and proponents alike shaping narratives on governance, fiscal policy and national priorities.
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