Friday, October 31, 2025 - A former Political Economic Adviser at the World Bank, Dr Mahmoud Alfa, has urged Nigerians to embrace the forthcoming 2026 tax reform law, saying the success of President Bola Tinubu’s fiscal agenda depends largely on public trust and responsible governance.
In a statement issued in Abuja on Friday, the Kogi-born
economist said the Tinubu administration had so far implemented “bold and
necessary economic reforms” that are beginning to yield results, even though
some citizens remain sceptical.
According to him, Nigeria remains largely under-taxed
compared to other economies, despite grappling with multiple taxation,
particularly in the trade and commerce sectors.
“While the Tinubu-led administration promises reforms to fix
the multiple-taxation problems to at least improve the ease of doing business
in Nigeria, a survey with some of the citizens will easily show that the change
is not where it should be yet, but there are positive improvements.
“In a way, the citizens, especially the traders, are still
faced with multiple taxation as a reality,” he said.
The chief executive officer of Vibranium Group acknowledged
growing public concern about the new tax law, which takes effect on January 1,
2026, but argued that taxation remains the foundation of national development.
“The essence of taxation cannot be overemphasised. Advanced
nations all over the world owe a good number of their advancements to the taxes
they collect from their citizens.
“In Nigeria, it is still a dream yet to be achieved as
Nigeria relies heavily on debt to fund most of its infrastructure, and the
citizens do not trust the government enough with their taxes,” he stated.
Alfa described Nigeria as a country where tax evasion is
widespread and accountability remains low.
He also stressed the need for both citizens and government
to rebuild mutual trust, insisting that paying taxes and managing them
transparently are two sides of the same coin.
“In Nigeria, the citizens will gladly evade tax, and there
are hardly cases of citizens being jailed for tax evasion. This shows that
Nigerians are under-taxed compared to countries like the UK, Spain, among other
developed economies of the world.
“Refusing to pay tax is a crime, same as stealing the taxes
is a crime. It is more of a chicken-and-egg situation,” he stated.
The economist further commended the Chairman of the
Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, for
leading public enlightenment on the forthcoming reforms.
Alfa’s comments came barely a week after Oyedele projected
that states could earn over N4 trillion annually from 2026 when the new Value
Added Tax reforms take effect.
Speaking at the launch of the BudgIT State of States 2025
Report in Abuja, Oyedele explained that states’ share of VAT revenue will rise
to 55 per cent, creating a major opportunity for fiscal independence.
He noted that while Federation Account Allocation Committee
transfers had more than doubled — from N5.4 trillion in 2023 to N11.4 trillion
in 2024 — the average Nigerian was yet to feel any direct relief.
“States are receiving more money than ever before. But there
is a paradox: while governments have more naira, ordinary Nigerians have less
disposable income in their pockets,” he lamented.
Oyedele also urged governors to invest in infrastructure,
education, and healthcare, warning that poor implementation could undermine
progress despite increased revenues.
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