Why the controversial tax law should be paused

By : Olayide Soaga

Date: 13 January 2026 9:01pm WAT

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Bujeti launches Tax Management product || Image source: Google

Bujeti launches Tax Management product || Image source: Google

It is now undeniable that the tax laws have been fundamentally altered, and even a firm as esteemed as KPMG has pinpointed 31 critical problem areas, from drafting errors to glaring policy contradictions and administrative gaps. This revelation should prompt every responsible government to take immediate action.

Even more alarming is the fact that it took private meetings between the National Revenue Service and KPMG for these serious issues to be acknowledged. If experts require closed-door discussions to navigate the complexities of our tax laws, what hope does the average Nigerian have of comprehending the obligations being imposed on them?

Taxation transcends mere fiscal policy; it represents a social contract between the government and its citizens. You cannot enforce a social contract that isn’t understood or trusted.

Globally, tax policies are justified by delivering tangible benefits to citizens: improved healthcare, better educational systems, job opportunities, infrastructure development, and social safety nets. This is what the social contract signifies. In Nigeria, the narrative is all about how much more the government seeks to extract, rather than what it is prepared to offer in return. A tax system devoid of clear public benefits isn’t reform; it is, quite frankly, extortion.

Typically, months, if not years, are dedicated to consulting with businesses, workers, and civil society before tax drafts are presented for public discussion, with the ramifications clearly explained. People must be informed not only about their financial contributions but also about the benefits that will ensue. This is how legitimacy is cultivated. Yet, in Nigeria, we have seen no such public consultations or discussions regarding the final tax laws, leaving ordinary citizens completely in the dark about both the regulations and the benefits of the taxes they’re expected to pay.

We have hastily pursued collection without securing a consensus and imposed enforcement without providing adequate explanations. Even after the removal of subsidies, Nigerians remain in limbo, waiting for tangible benefits or relief. Instead, they are grappling with skyrocketing food prices, exorbitant transport costs, dwindling purchasing power, and escalating poverty levels.

Before we have even begun to address these issues, we are being thrust into an expansive new tax regime, riddled with inconsistencies and producing 31 alarming red flags from a leading global accounting firm. This is not the hallmark of responsible governance.

Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without evident public value, it amounts to robbery.

Nigeria cannot afford to place further burdens on its already struggling citizens. What we need is a government that listens, communicates effectively, and prioritises building national consensus. This is the only viable path to genuine reform, unity, growth, and shared prosperity.

A New Nigeria is not just a possibility; it is an imperative.

Obi is a former governor of Anambra State

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