THE Nigeria Labour Congress (NLC) has refuted Senate President Godswill Akpabio’s claim that less than 30 per cent of Nigerians pay tax.
The group said its members represented the largest tax-paying community in the country.
Reacting to the claim while speaking with The ICIR on Tuesday, February 25, the NLC Head of Information and Public Affairs, Benson Upah, said while Akpabio’s claims could not be immediately verified, significant Nigerians in the informal sector, including livestock marketers, farm produce sellers and artisans paid taxes.
“Even if the so-called 30 per cent was correct, it is no justification to pummel Nigerians with this kind of multiplicity and degree of taxes, corporate and income. What I can categorically say is that Nigeria Labour Congress is the largest tax-paying community in the country, yet it was not consulted before these reforms were contemplated” he said in reaction to the new tax bills sponsored by the Federal Government.
Upah said accountability and transparency in the government’s use of tax revenues had been almost nonexistent.
Recall that the Senate President on Monday, February 24, at a two-day public hearing organised by the Senate in Abuja on the contentious tax reform bills said while many citizens failed to pay taxes, they expected the government to deliver top-notch infrastructure, education, security, and other essential services.
He said less than 30 per cent of the nation’s citizens paid taxes.
Reacting, the TUC faulted the claim, and NECA blamed the government for the low payments.
Speaking with Vanguard newspaper, the Deputy President of Trade Union Congress (TUC), Tommy Okon, questioned the accuracy of Akpabio’s claim, pointing out that the Federal Inland Revenue Service (FIRS) consistently exceeded its revenue targets.
“We do not know where he got his facts from, in a country where there is a dearth of data. If what he is saying is true, how come the Federal Inland Revenue Service, FIRS, always surpassed its set target? ‘’This government has taxed the masses enough, and it is even the wealthy few that evade payment of tax, not the workers whose taxes are deducted from source” he said.
Okon challenged Akpabio to identify Nigerians evading tax payments rather than making a sweeping claim.
“We are very sure that when they were campaigning for election, the issue of taxation was not a condition precedent for good governance. Honestly, such a statement should not have emanated from the legislative arms of the government, whose major role is to make laws for good governance,” he added.
Similarly, the Nigeria Employers’ Consultative Association (NECA) said the government should be blamed for creating conditions that discourage citizens from paying taxes. It said the government shared responsibility by failing to provide visible benefits from collected taxes, “which discourages compliance.”
Speaking through its Director-General, Adewale-Smatt Oyerinde, NECA said: “ It is not far from the truth that the majority of Nigerians don’t pay tax. While this is quite unfortunate, the government too has been culpable in giving the citizens many reasons not to pay, especially as the benefits of the taxes collected are not seen by many”
While supporting the new tax reforms and efforts to enhance tax collection efficiency, NECA stressed the need for a system that ensures government accountability for tax revenues.
The new tax reformation bill
The ICIR reported that President Bola Tinubu proposed tax reforms in 2024, which have sparked concerns among stakeholders, particularly in Northern Nigeria.
The bills are the Nigeria Tax Bill 2024, expected to provide a fiscal framework for taxation in the country; the Tax Administration Bill, which provides a clear and concise legal framework for all taxes in the country and reduces disputes.
Others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service (FIRS) Act and establish the Nigeria Revenue Service; and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
After deliberations on the bills were suspended at the National Assembly in 2024, following outrage against it, especially in the North, the Senate kicked off a two-day public hearing on the bills on February 24.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues.