A credible tax system is the price of a functional state, argues JOSHUA J. OMOJUWA

I attended the National Orientation Agency’s (NOA) Twitter/X Space where Mr Taiwo Oyedele, who leads the presidential committee on tax reforms, took rapid fire questions about Nigeria’s new tax laws. The timing was perfect. Rumours multiply when wallets are thin, and many loud voices have framed the reforms as a plan to tax everyone into hardship. Anger is shareable, often fueled by misinformation, so the claim travels far. It is also a distortion. The core intent is to simplify, to harmonise, and to rebuild trust.

For years Nigeria has tried to fund a large republic with a small and unstable tax base. Too many agencies collect too many small levies. That’s before you mention all the illegal collections from organisations that have no legal basis for tax collection. Compliance is expensive for honest firms and easy to avoid for the well connected. The result is a trust gap. Citizens doubt that taxes are fair, so they look for escape routes. Governments doubt that citizens will comply, so they resort to aggressive enforcement and ad hoc charges. A reset was overdue. The committee’s brief sets three linked goals. Lower the cost of paying. Make the rules predictable. Reduce multiple taxation so businesses can plan.

The popular story says the government wants to squeeze everyone. The public guidance says something different. There is no blanket plan to hike headline rates across the board. The aim is to widen the base by removing duplication, closing gaps, and making compliance simple. The intention is to spare the smallest traders from heavy paperwork and to move enforcement toward larger players and high-risk sectors. No reform will please everyone, but the direction of travel is toward simplicity and fairness rather than punishment.

Falsehoods flourish where details are scarce. A clip is trimmed out of context. A speculative blog becomes a thread. Before long, people believe that every rent will carry new taxes, that school fees will be taxed, or that every online transfer will be levied twice. The responsible answer is not to shout back. It is to put the text beside human examples. What does a salon owner need to do this quarter? How should a bakery record inputs? What should a ride hailing driver keep after each trip? Clear explanations reduce fear faster than slogans and Mr Oyedele has done great here.

Much of the daily friction sits at subnational level. Multiple levies, roadblocks, and cash collections make business expensive and invite abuse. The reform push recognises that uncoordinated state and local fees can crush jobs. Harmonisation matters. States need standard rate cards, single bill systems, and an end to the practice of contracting touts to collect revenue. The Joint Tax Board should be the clearing house for these fixes, while civil society keeps the spotlight on what families and small firms feel.

A modern tax system meets people where they are. That means portals that work on mobile, receipts that reconcile automatically, and prefilled returns for salaried workers. It means service level agreements that commit revenue offices to timelines for refunds, rulings, and appeals. It also means analytics that target audits based on risk rather than proximity. Data can reduce harassment and increase fairness. If the reform holds, there will be fewer face to face encounters and more frictionless payments that leave a clean trail.

Enduring reform depends on trust. People pay more willingly when they see value. Governments build that trust by publishing simple dashboards that track how much was collected and where it went. Streetlights that work, clinics with medicines, schools with teachers, and roads without axle breaking holes are the real public relations. When people see delivery, debates about rates become less toxic, and reform earns a social licence.

Three risks will decide success. First is capacity. Laws are words until systems and people give them life. Investment in training and technology is not optional. Second is coherence. If federal rules say one thing and state agents do another, progress dies at the checkpoint. Third is communication. Every change should be explained in plain language with examples and in local languages, then repeated until it sticks. The committee and the NOA are right to use radio, town halls, and social platforms. They should also partner with trade groups and professional bodies that people already trust.

Transition deserves careful handling. Businesses need clear start dates, grace periods, and guidance on how old rules interact with new ones. Small firms that invested under earlier regimes will expect fair treatment while they adjust prices and contracts. Service charters should list response times for rulings and refunds, with escalation paths that work. A simple grievance portal, backed by people, will prevent small issues from becoming public crises.

As a business, register, even if the business is small. Keep simple records, even if they live in a notebook. Use authorised portals. Ask questions and document answers. Escalate politely when rules are unclear. Join your trade association and share templates that reduce guesswork. Salaried workers should confirm deductions and demand receipts. For professionals, volunteer time to help small businesses nearby understand the basics. Compliance gets easier when knowledge is shared.

Opposition to reform is normal. Every change produces winners and losers. Some of the loudest voices profit from the old chaos. Others are genuinely worried about affordability. Policymakers should listen and adjust details where evidence demands it. They should not retreat to the comfort of the broken past. A credible tax system is the price of a functional state. Without it, the country will keep borrowing for basics and expecting miracles from thin air.

Taxes are never popular, yet they are not optional if we want a country that works. The question is not whether we should pay. The real question is whether the system is fair, simple, and predictable enough to support growth. The current reform points in that direction. Citizens should challenge government to deliver service in exchange for compliance. Government should meet citizens with respect and clarity.

 Omojuwa is chief strategist, Alpha Reach/BGX Publishing

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