Senate President Godswill Akpabio has come under criticism from the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the Nigeria Employers’ Consultative Association (NECA) over his statement that only 30 per cent of Nigerians pay tax while demanding more from the government.
Akpabio made the comment on Monday, February 24, while opening a two-day public hearing on the controversial tax reform bills in Abuja.
He described tax reforms as critical to Nigeria’s future, stressing that they must be properly implemented.
However, the NLC, TUC, and NECA swiftly rejected his claim, arguing that tax evasion is a response to the government’s failure to be accountable to the people.
Addressing concerns at the hearing, Akpabio insisted that tax reforms were necessary for national development.
“I don’t think up to 30 per cent of Nigerians pay taxes, but 100 per cent want good roads,” he said.
However, an NLC official, speaking anonymously, criticised Akpabio’s remarks, stating that citizens will only pay taxes when they see the government acting responsibly.
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“Akpabio, like many politicians, talks before he thinks. With the huge revenue accruing from oil and other natural resources, there has been nothing to show for it, except that government officials live flamboyantly at the expense of Nigerian people,” the official said.
“You cannot tax poverty but wealth. If a government does not provide an enabling environment for Nigerians to thrive, how would they be confident in contributing to the state? The truth is that it is only poor workers who pay taxes dutifully every month, while the rich evade taxes.”
The TUC also dismissed Akpabio’s claim, challenging him to name those evading taxes.
“We do not know where he got his facts from, in a country where there is a dearth of data,” said TUC Deputy President Dr Tommy Okon.
“This government has taxed the masses enough, and it is even the wealthy few that evade tax, not workers whose taxes are deducted at the source.
“He should come out openly to mention specifically those groups of Nigerians who have been evading tax payment instead of generalising it with an unverifiable percentage.”
Meanwhile, NECA’s Director-General, Adewale-Smatt Oyerinde, acknowledged that many Nigerians do not pay taxes but blamed the government for failing to justify tax collection.
“It is not far from the truth that the majority of Nigerians don’t pay tax.
“While this is quite unfortunate, the government too has been culpable in giving the citizens many reasons not to pay, especially as the benefits of the taxes collected are not seen by many,” he said.
“While we align with the new tax reforms and the need to improve tax collection efficiency, there must also be a mechanism to make government accountable for the taxes collected.”
Senate Committee on Finance Chairman, Senator Sani Musa, disclosed that President Bola Tinubu has urged the Senate to develop effective tax laws from the bills he submitted in October 2024.
“The President has a good intention,” Musa said. “I met President Tinubu two days ago on the tax reform bills, and he told me, ‘Go and do the needful, give me a law that is workable.’”
He assured that the legislative process would accommodate diverse opinions to ensure fairness in tax collection and revenue allocation.
Despite the controversy, several stakeholders supported the bills, including the Nigerian National Petroleum Company Limited (NNPCL), the Revenue Mobilisation and Fiscal Allocation Commission (RMFAC), the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Arewa Think Tank, and retired permanent secretaries.
NNPCL’s Group Chief Executive Officer, Mele Kyari, described the bills as a step towards a more efficient tax system.
“We are the happiest people to see this tax law coming into place, bringing in significant reforms that will bring simplicity to the tax system,” Kyari said.
The RMFAC Chairman, Dr Mohammed Shehu, also voiced full support for the bills, saying they would enhance economic stability.
However, he urged the Senate Committee on Finance to address the issue of revenue distribution to sub-nationals.
The Arewa Think Tank Convener, Muhammad Yakubu, dismissed claims that the North opposed the tax reforms, stating, “We have analysed the benefits of the bills and made our position known. The perception that the North is against the bill is not true.”
Akpabio urged Nigerians to engage with the legislative process rather than rely on social media for information.
“Don’t base your arguments on social media opinions. Read the bills, analyse them, and present well-informed recommendations,” he added.
The Senate President assured that the reforms aim to modernise outdated tax laws, improve efficiency, and ensure fairness.
However, with labour unions and business leaders insisting on government accountability, the debate over tax reforms is far from settled.