A damning professional assessment has revealed fundamental flaws in Nigeria's recently enacted tax legislation, prompting urgent calls for the government to halt its implementation. The global accounting giant, KPMG, has identified a staggering 31 critical problem areas within the laws, ranging from basic drafting errors to severe policy contradictions and administrative gaps.
A System Riddled with Errors and Secrecy
The alarming details came to light not through public parliamentary discourse, but via private meetings between the National Revenue Service and KPMG consultants. This secrecy raises serious questions about transparency. If tax experts require closed-door sessions to decipher the law's complexities, what chance does the ordinary Nigerian business owner or citizen have of understanding their obligations? The very foundation of a fair tax system—clarity and accessibility—appears to be missing.
The Broken Social Contract
Taxation is more than a government revenue tool; it is a social contract. Citizens agree to contribute financially in exchange for tangible public goods and services: quality healthcare, functioning schools, job opportunities, and maintained infrastructure. In Nigeria, however, the narrative has dangerously shifted. The focus is overwhelmingly on how much more the state can extract, with little to no dialogue about what will be delivered in return. A tax system without clear, communicated public benefits is not reform; it risks being perceived as state-sanctioned extortion.
Globally, legitimate tax reforms involve extensive consultations with businesses, worker unions, and civil society groups. These discussions happen before drafts become law, ensuring people understand both the cost and the intended benefit. Nigeria's process lacked this crucial step. There were no meaningful public consultations on the final laws, leaving citizens in the dark about both the regulations and what their payments would achieve.
Enforcement Without Trust is Counterproductive
The situation is exacerbated by the current economic hardship. Following the removal of fuel subsidies, Nigerians were promised relief and renewed investment in public welfare. Instead, they face:
- Skyrocketing prices for food and essential goods.
- Cripplingly high transport costs.
- A rapidly diminishing purchasing power.
- Escalating poverty levels.
Before addressing these pressing issues, the government is introducing a complex new tax regime already flagged as defective by a leading international firm. This is not responsible governance. Without trust, taxation feels like punishment. Without clarity, it breeds confusion and non-compliance. Without evident public value, it erodes the very legitimacy of the state.
Nigeria cannot afford to heap additional burdens on its already struggling population. The path forward requires a government that listens, communicates effectively, and prioritizes building a national consensus. Pausing the controversial tax law to address its flaws and rebuild public trust is the only viable route to genuine reform, unity, and shared prosperity. As emphasized by former Anambra State Governor Peter Obi, a New Nigeria built on these principles is not just a possibility—it is an imperative.
