DESPITE the commencement of their implementation since January 1, the Nigerian government is walking a tight rope trying to convince Nigerians on the tax laws because of trust deficits and lack of fiscal transparency in the administration of President Bola Tinubu.
This was the view of the Executive Director of Civil Society Centre Legislative Advocacy Centre (CISLAC), Auwal Musa Rafsanjani, while speaking with The ICIR on Tuesday, January 6.
He said the Tinubu government was facing a lot of backlashes because it failed the transparency test with subsidy removal savings.
Rafsanjani argued that efforts to reform the tax law gained cautious support from many Nigerians, noting, however, that “the legitimacy issues and controversies surrounding its alterations and reclassification have lowered the confidence of most Nigerians.
“There’s still a question of clarity and legitimacy in these laws, arising from the controversies spotted by the National Assembly, claiming that what was passed was not what was gazetted. These issues must be addressed properly for public trust despite the re-gazetting assurances from the legislature.
He added, “Many Nigerians are suspicious of the desperation that the government has shown in pushing for the tax laws. This is because many a times, government failed Nigerians with unfulfilled promises.”
Citing an example with poor transparency with petrol subsidy savings, he stressed that the government’s promise to better the lives of the people with subsidy savings remained largely elusive and unfulfilled.
“Two years after the subsidy removal, the large chunk of savings accrued from such savings has not translated to better healthcare, education, energy, water, sanitation and infrastructural development,” he said.
He explained that the absence of transparency and accountability in the fuel subsidy removal created room for doubt about the government’s tax reform laws and efficient utilisation of proceeds from the taxes.
He stressed the consequences of growing economic hardships, adding that “The government could face resistance as a result of backlash from the enforcement of the tax laws.”
According to Rafsanjani, the government needs revenue through taxes but should be able to build confidence through the effective use of taxes.
He suggested that the government could change the narrative of lack of public trust through “public disclosure of expenditures so that Nigerians can see the amount collected and what they are used for.”
The ICIR reports that the Nigerian tax reform laws have generated controversies, which revolve around allegations of discrepancies between the tax laws passed by the National Assembly and the versions gazetted by the Presidency.
Several pressure groups, such as the Nigerian Bar Association (NBA), the Chartered Institute of Taxation of Nigeria (CITN) warned that such discrepancies could create legal uncertainty and heighten compliance risks for taxpayers, professionals, and investors.
A member of the House of Representatives, Abdulsamad Dasuki, had during a plenary session alleged discrepancies and alterations between tax laws passed by the National Assembly and the versions subsequently gazetted and made available to the public.
He said his legislative rights was breached because the content of the gazetted tax laws did not reflect what lawmakers debated and approved on the floor of the House.
As a result, many Nigerians have been furious that despite the concerns raised in several quarters about the law, the government insisted on its implementation, not minding possible compliance resistance.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.