Nigeria’s tax reforms are facing a credibility crisis due to lack of accountability and poor public awareness, stakeholders have said.
Speaking at a seminar organised by the Institute of Chartered Accountants of Nigeria (ICAN), Abuja and District Society, the 15th Chairman of the society, Dr. Michael Nnachi-Opara, said many Nigerians do not understand what they pay as tax or what they get in return.
“If you go to the streets and ask people about tax, many do not understand what they pay or what they get in return,” he said.
Nnachi-Opara said the government owes citizens a duty to explain how much is collected and how it is spent.
“If taxpayers are aware of these things, they will be willing to comply,” he said.
He said weak accountability continues to fuel resistance to taxation.
“Where there is no accountability, it will be difficult for the masses to listen to the government,” he said.
He said public scepticism is reinforced by poor service delivery.
“People cannot be convinced that paying more tax will improve power supply when money has been spent and Nigeria is still in darkness,” he said.
Nnachi-Opara said the seminar was convened to address what he described as a failure of values around governance and civic responsibility.
Also speaking, the Director of Communications and Media at the National Orientation Agency (NOA), Bala Musa, who represented Director-General Mallam Lanre Issa-Onilu, said Nigeria’s tax challenge is driven by poor civic orientation and weak trust in government.
“There is a trust deficit between the government and the people, that is a fact,” he said.
Musa said many Nigerians resist taxation because they do not see a direct link between taxes and public services.
“The money does not come from heaven. It is from taxes, rates, rents and tariffs that are put together to build roads and provide services,” he said.
He said the absence of early education on taxation has worsened the problem.
“There should be tax education in our school system so people grow up understanding what tax is meant for,” he said.
Musa said the agency has been engaging citizens to counter misinformation around tax reforms.
“We are correcting misinformation and disinformation and bringing government activities to the people through different platforms,” he said.
He said efforts to deepen grassroots sensitisation have been slow.
“We want to extend engagement to communities, but that partnership has not fully taken off,” he said.
Also presenting a paper at the seminar, Enamudu F. Benjamin, PhD, FCA, FCTI, FCCrFA, MBA (Fin Mgt), IFRS Cert, stressed the importance of technology in tax administration.
“In this age and time, we cannot run away from the use of technology. Technology has come to make life easier for us,” he said.