A Programme Officer at the agency, Abiodun Olayeni-Ali, made the remark on Thursday during an interactive session at the maiden edition of Civic Talks organised by the Centre for Inclusive Social Development in Abuja.

According to her, citizens who do not contribute to government revenue through taxes have little standing to demand explanations from public officials.

“You have to pay your tax before you can hold the government accountable. If you are not paying taxes, it becomes difficult to question what the government is doing,” she said.

Olayeni-Ali lamented that many Nigerians do not pay taxes, adding that the responsibility is largely carried by civil servants and a small number of salaried employees.

“The majority of Nigerians do not pay tax. It is mainly civil servants and a few workers in some companies that actually pay taxes in this country,” she said.

She also alleged that some companies manipulate payroll records to reduce the amount of tax deducted from workers’ salaries.

The NOA official revealed that the agency has launched nationwide awareness campaigns to educate citizens about the country’s new tax reforms and address misinformation that emerged after the policy was introduced.

She explained that the agency operates offices across all 774 local government areas and carries out public enlightenment through community meetings, radio programmes and stakeholder engagements. Participants at such programmes, she said, are encouraged to share the information within their communities.

While acknowledging that distrust of government remains widespread, Olayeni-Ali stressed that taxes are essential for funding public services such as schools, hospitals and infrastructure. She added that the agency’s engagement campaign also supports efforts to rebuild trust between citizens and government through the National Value Charter initiative.

Meanwhile, business owners and operators in the informal sector—including POS operators, electricians and plumbers—who attended the event raised concerns about how the new tax reforms could affect their livelihoods.

Some participants argued that drivers and small traders already make little profit after deducting fuel, maintenance and other operational costs, questioning how they would cope with additional tax obligations. Others expressed doubts about tax compliance, saying many Nigerians see little visible benefit from government services.

Participants also pointed to confusion surrounding the reforms, including uncertainty about whether the policy had been suspended and how the proposed presumptive tax system for the informal sector would work.

Responding to the concerns, a Senior Programme Officer at the International Budget Partnership and public financial management specialist, Iniobong Usen, said the tax reforms were introduced to correct structural weaknesses in Nigeria’s fiscal system.

He explained that the previous tax structure placed heavier burdens on low-income earners while many wealthy individuals paid little or no tax.

“Our tax system was regressive. The poorest and most vulnerable carried the greatest burden, while the richest people did not pay their fair share,” he said.

Usen noted that the new personal income tax structure is intended 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 designed to simplify taxation for informal sector operators who do not keep formal financial records.

“For small business owners who cannot maintain records, the government proposes that they pay about one per cent of their turnover as tax,” he explained.

Reforms Target Multiple Taxation

Usen further stated that the reforms aim to eliminate multiple taxation and clamp down on individuals who illegally collect levies from businesses.

“If you harass anyone to collect any levy, fee or tax, you could face a fine of up to ₦5 million or imprisonment for three years,” he said.

He emphasised that citizens must also become more engaged in governance if they want stronger accountability from public officials.

A tax consultant and Managing Partner at Lefort Consulting Limited, Toyin Olufon, said the nationwide debate that followed the announcement of the reforms reflects growing public interest in fiscal policy.

Although the discussions initially generated panic and misinformation, she said the level of engagement was a positive development.

“The fact that Nigerians were asking questions and engaging with the issues shows we are moving in the right direction,” she said.

Olufon explained that personal income tax applies to individuals and sole proprietors, while company income tax applies to registered limited liability companies.

She also highlighted provisions aimed at supporting business growth, noting that companies with annual turnover below ₦100 million and net assets below ₦250 million are exempt from company income tax.

“That threshold allows small businesses to grow before they begin paying company income tax,” she said.

She added that several existing taxes have been consolidated into a single development levy of four per cent to simplify compliance for businesses.

Olufon also pointed to the introduction of electronic invoicing as a key transparency measure within the value-added tax system.

“The e-invoicing system enables transactions to be transmitted directly to the tax authority, making it easier to verify VAT payments and process refunds,” she said.

Another tax consultant, Telvin Inalegwu, noted that accountability would only improve if citizens actively monitor how government spends public funds.

“The taxes we are discussing are what fund the national budget,” he said. “But Nigerians rarely follow the budget.”

According to him, many citizens do not track public projects or verify whether allocated funds are used for their intended purposes.

“If we pay taxes and monitor the budget, we will better understand what belongs to us,” he added.

He said proper documentation and record-keeping would also help businesses benefit from tax reliefs and credits, while stricter penalties under the reforms are expected to improve compliance.

In June 2025, Bola Tinubu signed four major tax reform bills into law, including the Nigeria Tax Act, as part of efforts to overhaul outdated tax laws and modernise Nigeria’s tax system.