Experts warn low tax morale threatens Nigeria’s new tax regime

Nigeria’s proposed new tax regime is facing growing public resistance, not necessarily because of flaws in its design, but due to weaknesses in its rollout that have undermined public trust and tax morale, experts have warned.

The controversy trailing the passage of the tax reform bill, alongside conflicting narratives from citizens, civil society groups and interest blocs, has exposed a deeper challenge: the government’s approach to tax reform has been largely technical, with limited attention paid to the social contract between taxpayers and the state.

Analysts acknowledge that the Taiwo Oyedele-led Presidential Fiscal Policy and Tax Reform Committee delivered a technically robust framework.

However, they argue that the reform process failed to adequately address the broader objective of nurturing a healthy tax culture in a country grappling with widespread hunger, poverty and illiteracy.

“Tax compliance does not exist in a vacuum,” said a public finance expert. “In an environment where many citizens struggle to meet basic needs, taxation must be accompanied by visible government commitment to improving living standards. Without that, tax morale will remain weak, regardless of how sophisticated the policy is.”

Experts noted that the passage of the tax bill should have provided an opportunity to confront long-standing structural issues in Nigeria’s tax system and rebuild public confidence.

Instead, the country has moved into the implementation phase amid confusion and a fractured public narrative.

Concerns have also been raised over discrepancies between the version of the bill passed by the National Assembly and the gazetted copy, with analysts warning that unresolved inconsistencies could further erode the credibility of the reform.

“The longer these discrepancies remain unresolved, the more damage is done to public confidence,” an economic governance analyst said. “Tax systems thrive on clarity and trust. Any ambiguity weakens compliance.”

Attention is now shifting to the National Tax Policy Implementation Committee, chaired by Kayode Tegbe, which experts say must move swiftly to restore confidence.

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Stakeholders argue that the committee’s success will depend on its ability to engage citizens, civil society organisations and the private sector in shaping a tax regime that is inclusive, equitable and widely understood.

According to policy analysts, consensus-building and public education must become central to the reform agenda. “This is not just about revenue mobilisation,” said a tax policy consultant. “It is about redefining the relationship between Nigerians and their government. People need to understand not just what they are paying, but why they are paying and what they get in return.”

Experts recommend several urgent steps to stabilise the reform process. These include reconciling discrepancies between the National Assembly’s passed bill and the gazetted version, launching a nationwide tax education campaign, and demonstrating tangible government action on social challenges such as poverty, hunger and illiteracy to boost tax morale.

They also stress the importance of transparency and accountability in the use of tax revenues, noting that visible improvements in public services are critical to sustaining long-term compliance.

Ultimately, analysts say Nigeria’s tax reform journey requires more than policy adjustments. “What is needed is a cultural shift,” one expert concluded. “Rebuilding tax morale means rebooting the conversation, placing citizens at the centre of reform, and making compliance a shared national responsibility.”