Senate President Godswill Akpabio has come under criticism from the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and Nigeria Employers’ Consultative Association (NECA) over his claim that only 30% of Nigerians pay taxes while demanding more from the government.
Akpabio made the statement at a two-day public hearing on tax reform bills in Abuja, describing tax reforms as crucial for Nigeria’s future. He lamented the poor tax culture in the country, stating that while many citizens demand better infrastructure, education, and security, only a small fraction contribute to government revenue through taxation.
Labour Unions and NECA React
In swift responses, the NLC, TUC, and NECA rejected Akpabio’s assertion, arguing that tax evasion is a result of government unaccountability. A senior NLC official, speaking anonymously, stated:
“Citizens can only fulfill their civic duty of paying taxes when they see a connection between their survival, businesses, and the government’s positive actions. The rich evade taxes, while poor workers bear the burden through deductions at the source.”
TUC Deputy President Dr. Tommy Okon also challenged Akpabio to provide data supporting his claim:
“If only 30% of Nigerians pay tax, how does the Federal Inland Revenue Service (FIRS) consistently surpass its revenue targets? The real tax evaders are the wealthy, not workers whose taxes are deducted before they receive their salaries.”
NECA Director-General Adewale-Smatt Oyerinde echoed similar sentiments, emphasizing that tax compliance would improve if the government were more transparent in utilizing tax revenue.
“The government has been culpable in giving citizens reasons not to pay tax, especially when taxpayers see little benefit from their contributions.”
Tax Reform Bills Gain Support
Despite the backlash, several key stakeholders, including the Nigerian National Petroleum Company Limited (NNPCL), Revenue Mobilisation and Fiscal Allocation Commission (RMFAC), and the Institute of Chartered Accountants of Nigeria (ICAN), expressed support for the tax reform bills.
NNPCL’s Group CEO, Mele Kyari, welcomed the bills, stating:
“These reforms will simplify the tax system, reduce multiple taxation, and create a more business-friendly environment.”
Senate Finance Committee Chairman, Senator Sani Musa, assured that the bills would be thoroughly examined to create a fair and efficient tax system. He emphasized that President Bola Tinubu had instructed lawmakers to draft a “workable” tax law that would not result in numerous legal disputes.
The proposed tax reform bills include:
1. The Nigeria Tax Bill (NTB) 2024
2. The Nigeria Tax Administration Bill (NTAB) 2024
3. The Nigeria Revenue Service (Establishment) Bill (NRSEB) 2024
4. The Joint Revenue Board (Establishment) Bill (JRBEB) 2024
Akpabio Defends Position
Responding to criticisms, Akpabio urged Nigerians to study the proposed bills instead of relying on social media narratives. He maintained that tax reforms were necessary to modernize outdated laws and improve revenue collection.
“We are not here to rush the process but to ensure tax laws serve Nigerians. These bills will be carefully examined to enhance accountability and fairness in revenue distribution.”
As the debate continues, stakeholders remain divided over the effectiveness of Nigeria’s tax system and the government’s responsibility in ensuring transparency and accountability in revenue utilization.
