By Sulaimon Mojeed-Sanni
A recent Facebook post by Hon. Jessica Enitan Abraham, Leader of Ikorodu West Local Council Development Area, following her visit to the United Kingdom for a leadership seminar, influenced this piece on taxation and public infrastructure in Nigeria.
Her reflections, titled “The Real Cost of a Working System: Lessons from the UK,” emphasized the diligence with which UK citizens pay taxes, recognizing their contributions as investments in public welfare. While Abraham’s insights on civic duty and the expectation of services were valid, they bring to light an essential question: can the government demand more from its citizens when it has yet to demonstrate transparency or accountability in managing its current resources?
In her post, Abraham accurately noted, “In the UK, citizens contribute significantly through various taxes—income tax, VAT, council tax, and more. These payments go into funding public infrastructure and social services.” The implication was clear: citizens need to pay to maintain high standards of public services. However, in Nigeria, the comparison is not straightforward. A country with 64 years of independence and 25 years of democratic rule since 1999 should have developed an accountable system, but what we see is quite different. Public trust in the government is eroded by corruption, opaque management, and failure to deliver on promises.
It is worth acknowledging that efficient governance, such as the tenure of former Lagos State Governor Babatunde Raji Fashola, has proven that leadership can inspire civic responsibility. Fashola’s administration emphasized transparency with the “your tax is working” initiative and regular updates on public projects. His period in the power sector also showcased active accountability. Yet, isolated examples like these do not negate the systemic issues—most Nigerians remain unconvinced that their taxes will result in tangible improvements, let alone be protected from mismanagement.
The reluctance to pay taxes stems from decades of broken promises and a glaring lack of accountability. Nigeria’s 2023 population, at over 223 million, dwarfs the UK’s 68.35 million, yet the disparity in tax revenue is stark. In 2022/23, the UK collected approximately £827.74 billion in tax receipts, while Nigeria’s 36 states and the Federal Capital Territory generated a mere £1.15 billion. This revenue shortfall is not just a consequence of population demographics but of weak economic structures, a negligible middle class, and a pervasive culture of tax evasion among the elite.
Beyond corporate taxes, the informal sector—responsible for approximately 50% of household income and employing around 37.5 million people as reported by the World Bank in 2019—remains significantly underaccounted for in Nigeria. Local Government Areas, which should be harnessing this potential revenue, often delegate tax collection to unregulated agents and local touts. These intermediaries collect daily dues and levies, remitting only a fraction of the revenue into official government accounts while keeping a substantial portion for themselves. Engaging directly with this sector reveals the heavy burden of unofficial fees and daily tickets that these informal workers endure, underscoring the inefficiencies and corruption that undermine local tax collection efforts.
The paradox extends to Nigeria’s oil and gas sector, where revenues are inconsistent with output. As the 15th largest oil producer, Nigeria earned about £1.2 billion in 2023, while the UK, ranking lower in production, generated £9 billion from the same sector. This disparity underscores the long-held suspicion of underreporting and underaccounting. The common citizen, burdened by poverty and economic hardship, understandably questions the government’s insistence on additional taxes while basic infrastructure remains inadequate.
Former Governor Fashola’s argument about borrowing for infrastructure investment is logical when viewed in isolation. He pointed out that major Western economies have leveraged debt to grow their economies, turning loans into public assets that contribute to GDP and employment. But for Nigeria, the question remains: what are we borrowing for, and where is the accountability? As of the third quarter of 2023, Nigeria’s debt exceeded $114 billion, and yet tangible improvements are scarce. A government that borrows must be transparent about its spending if it expects its citizens to shoulder more tax burdens.
This brings us to a poignant Yoruba proverb: “Amúkùń erù é wó, òkè lè ń wò, e ò wò’sàlè.” The saying, which translates to “Amúkùń, carrying a tilted load on his head, was told by passersby to be mindful, but he responded that they were looking at the load and not at him,” encapsulates the issue perfectly. The proverb implies that the failure of leadership cannot be hidden by blaming the people.
Even comparisons to the UK’s health sector, often cited as an exemplary system, reveal truths that Nigeria’s leaders prefer to overlook. Nigerian doctors who migrate and excel in the UK do so on the strength of their local training, proving that the issue is not talent but structural deficiencies. Despite the notable successes of these professionals abroad, their colleagues at home continue to face inadequate pay and infrastructure deficiencies —a reality that spans across all sectors. Yet, the government remains perplexed by the increasing desire of citizens to “japa” (emigrate in search of better opportunities). Nigerians willingly pay taxes abroad because they witness firsthand the tangible benefits and immediate impact on their lives and communities. This stark contrast underscores why calls for increased taxation at home are met with skepticism when there is little evidence of such transparency or benefit domestically.
The recurring tales of misappropriation—where funds looted by public officers are recovered only to be stolen again (late General Sanni Abacha’s recovered loot, a case in point)—erode public confidence further. As The Economist rightly observed, Nigeria’s leadership often fails to break this cycle of re-looting, leaving the citizens disillusioned and unwilling to contribute to a system they view as corrupt.
The push to tax the poor more heavily to fund infrastructure is both shortsighted and unjust when the government has not addressed its inefficiencies, prune the cost of governance or demonstrated accountability. Before asking more from its citizens, the Nigerian government must cut excesses, ensure transparency, and restore trust. Only then can leaders expect the people to view taxes not as an imposed burden, but as a shared investment in a future that benefits all.
Mojeed-Sanni writes from Doncaster, United Kingdom
