President Bola Ahmed Tinubu’s tax reform agenda has sparked widespread resistance due to its ambitious efforts to revamp Nigeria’s revenue system. The administration’s focus on expanding the tax base, improving compliance, and reducing dependency on oil revenue has been met with pushback from businesses, state governments, and citizens.
Critics argue that introducing these reforms during a period of economic strain has exacerbated financial pressures on households and businesses. The removal of fuel subsidies and volatile exchange rates have further deepened public dissatisfaction.
State governments have raised concerns over potential federal overreach in tax collection, fearing a loss of fiscal independence. Business leaders have also voiced frustration over insufficient consultation and a perceived emphasis on increasing taxes rather than addressing inefficiencies within the tax system
Sowunmi noted that while the tax bills may be well-intentioned, the lack of inclusivity undermined confidence in the reforms. He stressed the importance of having diverse representation to foster trust and ensure equitable decision-making.
The reforms have also faced rejection from the 36 state governors under the National Economic Council (NEC), with northern governors in particular opposing certain provisions. Sowunmi called on Tinubu to address these concerns transparently and emphasized that regional representatives would naturally defend the interests of their constituents, leading to the widespread pushback.
