23/12/2025
*President Tinubu, Suspend the New Tax Law — Prioritize Responsible Governance, Economic Stability, and National Sovereignty.*
*Akin Samuel KAYODE.*
Nigeria currently stands at a critical crossroads, grappling with rising unemployment, persistent inflation, widespread hunger, and a fragile economy. Millions of citizens are struggling to meet basic needs, while small and medium-sized enterprises, the backbone of Nigeria’s private sector, face unprecedented operational pressures. In this context, the introduction of a new tax law raises serious questions about timing, social impact, and economic prudence. While taxation is an essential tool for revenue generation, national development, and service provision, imposing such a law without prior consultation, comprehensive planning, and a clear strategy to cushion vulnerable citizens risks exacerbating economic hardship, deepening social inequality, and undermining public trust in governance. Responsible leadership requires balancing fiscal imperatives with the real-life conditions of citizens.
Adding to public concern, a member of the House of Representatives recently alleged that the version of the tax law gazetted for public awareness differs from the one approved by the National Assembly. Such discrepancies, whether intentional or accidental, threaten transparency, democratic norms, and legislative integrity. Citizens naturally question whether the law they are expected to comply with reflects the rigorous debates, amendments, and approvals of their elected representatives. Inconsistent communication between legislative approval and official publication not only weakens the legitimacy of the law but also creates fertile ground for public distrust, suspicion, and resistance, particularly in a country where previous governance decisions have left citizens wary of policy enforcement.
The timing of the law’s implementation is especially problematic. Nigeria’s inflation rate has continued to rise, sharply reducing the purchasing power of households. Basic commodities, transportation, and energy costs have escalated, consuming larger portions of family income and leaving limited room for discretionary spending. Unemployment, particularly among young people, remains alarmingly high, and a significant portion of the workforce relies on informal economic activities that are exceptionally sensitive to additional financial burdens. Imposing a new tax law under such conditions is likely to increase financial stress, reduce household savings, and dampen consumption patterns, which in turn could slow economic recovery, depress private sector activity, and inadvertently increase social tensions.
Historical examples demonstrate the consequences of abrupt policy shifts. The removal of fuel subsidies, executed with minimal consultation and insufficient palliative measures, caused widespread hardship. Citizens faced sudden surges in transportation and commodity costs, while small businesses experienced operational shocks, resulting in reduced employment and productivity. The absence of phased implementation and robust stakeholder engagement led to widespread criticism, protests, and political dissatisfaction. This example illustrates the importance of introducing major economic reforms gradually, with clear communication, social protection mechanisms, and careful planning to mitigate adverse effects.
Beyond timing and procedural concerns, the broader economic and social context underscores the potential risks of the new tax law. Nigeria’s economy remains heavily dependent on informal markets, with millions of small traders, artisans, and service providers operating outside formal tax structures. A blanket imposition of taxes without a targeted strategy risks overburdening the very sectors that contribute to the country’s resilience, entrepreneurial activity, and job creation. For sustainable reform, taxation must be aligned with economic capacity, phased in progressively, and accompanied by public education to ensure understanding, compliance, and acceptance.
Transparency in the legislative process is critical to maintaining public trust. Alleged discrepancies between the legislative version of the tax law and the gazetted document raise fundamental questions about governance accountability. Citizens have a right to expect that laws affecting their livelihoods are fully debated, clearly articulated, and faithfully executed as approved by their representatives. Any perception of inconsistency weakens confidence in democratic institutions and may encourage non-compliance, resistance, or civil unrest, particularly among populations already economically and socially vulnerable.
The economic vulnerability of the Nigerian population further amplifies these concerns. Inflation has eroded real incomes, and unemployment continues to rise, particularly among the youth demographic. Many households are forced to prioritise basic necessities over discretionary spending or savings, making them highly sensitive to additional tax obligations. Furthermore, small and medium-sized businesses, which employ a significant portion of the population, operate on limited margins and could face operational stress, layoffs, or closure under the weight of new taxation, which could in turn worsen the unemployment crisis.
Another critical concern is the involvement of France in the monitoring and assistance of tax collection. While international cooperation can strengthen capacity, outsourcing the monitoring of domestic taxation raises legitimate questions about national sovereignty, control over sensitive economic data, and strategic independence. Citizens are entitled to ask why a foreign entity would have a role in administering national revenue collection, and whether appropriate safeguards exist to ensure that Nigerian data, systems, and fiscal decisions remain under domestic authority. The perception of external involvement in such a critical aspect of governance risks undermining public confidence in the state’s ability to independently manage its fiscal affairs.
Effective governance requires that partnerships with foreign institutions complement, rather than replace, domestic capacity. Nigeria possesses capable technology firms, financial institutions, and skilled professionals capable of modernising tax systems, implementing digital collection, and ensuring compliance while protecting sovereignty. Leveraging these domestic capabilities not only strengthens national expertise and economic self-reliance but also creates jobs and drives technological innovation within Nigeria, rather than appearing to prioritise foreign expertise over local talent.
Public confidence in governance is closely linked to transparency, accountability, and responsiveness. The involvement of a foreign partner in tax collection, however well-intentioned, has raised legitimate concerns among citizens about oversight, independence, and control. Even if the agreement primarily involves technical assistance and training, the optics of foreign engagement in core fiscal administration demand clear, detailed, and transparent communication to assure citizens that sovereignty, national interest, and data security remain uncompromised.
Economic timing, social context, and public perception must guide policy implementation. Imposing new taxes during periods of high inflation, unemployment, and widespread poverty is likely to have negative ripple effects on household consumption, business activity, and investor confidence. Without careful impact analysis, phased implementation, and protective measures for vulnerable groups, the law risks achieving the opposite of its intended objectives, stifling economic growth and deepening social hardship.
Moreover, sudden tax impositions in a fragile economy may exacerbate informal economic activity and tax evasion. Nigeria’s informal sector is extensive, with millions of small-scale traders, artisans, and service providers whose contributions are vital to economic resilience. Policies that fail to account for their capacity to pay risk driving more economic activity underground, reducing overall revenue collection and weakening the formalisation of the economy.
The principle of public consultation is central to sustainable tax reform. Citizens, civil society organisations, and private sector stakeholders provide critical insights into practical implications, potential challenges, and unintended consequences of policy changes. Ignoring these voices undermines policy effectiveness and may result in laws that are technically sound on paper but fail in practice due to resistance, non-compliance, or social pushback.
Social cohesion is also at stake. Policies perceived as unfair, mistimed, or externally influenced can trigger unrest, strikes, or civil resistance. In a country as diverse and complex as Nigeria, insensitive policy rollout risks aggravating ethnic, regional, and economic tensions, threatening stability at a time when unity and trust are essential for national progress.
Furthermore, fiscal policy must consider the long-term impact on economic growth. Taxation in isolation, particularly when implemented without supportive economic reforms, can suppress investment, reduce consumer spending, and slow the recovery of struggling sectors. A more considered, phased approach, aligned with job creation initiatives, small business support, and investment incentives, is essential for sustainable revenue generation.
Global best practices demonstrate that successful tax reform is gradual, transparent, and contextually tailored. Economies that introduce major taxation measures with phased implementation, stakeholder engagement, and protective measures for vulnerable populations achieve higher compliance, stronger legitimacy, and better social acceptance. Nigeria’s policymakers would benefit from applying these lessons to ensure reforms are effective without creating undue hardship.
Suspension of the new tax law would provide an opportunity for comprehensive review, consultation, and adjustment. This would allow for detailed economic modelling, stakeholder input, public education, and a phased rollout strategy that balances revenue needs with citizen welfare. Such a pause demonstrates humility, responsiveness, and commitment to governance that listens as well as leads.
A responsible approach to tax reform must include clear communication of objectives, detailed explanations of phased implementation, and protective measures for vulnerable groups. Ensuring that domestic institutions retain full control over data, enforcement, and administration is equally critical to uphold sovereignty and public confidence. Effective communication and transparency can foster legitimacy, improve compliance, and strengthen the social contract between government and citizens.
Ultimately, governance is measured not only by policies enacted but also by their implementation and impact on citizens’ lives. Policies that fail to consider the lived realities of the population risk being counterproductive, undermining public trust, and creating long-term economic and social problems. Nigeria’s leaders must ensure that taxation reforms serve both the state and the people, rather than imposing additional burdens during periods of economic fragility.
In conclusion, the introduction of the new tax law, amidst allegations of legislative discrepancies, high unemployment, rising inflation, and controversial foreign involvement, necessitates urgent reconsideration. Suspending the law temporarily is not a retreat from fiscal responsibility but an opportunity to reassess, consult, and implement reforms responsibly. True leadership is demonstrated not by imposition but by prudence, foresight, and responsiveness. By pausing the rollout of this law, President Tinubu can reaffirm Nigeria’s commitment to transparent governance, economic stability, and the protection of national sovereignty, ensuring that policies achieve their intended objectives without deepening hardship or compromising citizen trust.
*ASK.*
Assistant Secretary, Monitoring and Feedback Committee,
The Narrative Force.
