Why Nigerians Don't Pay Taxes: Challenges and Solutions

The Chartered Institute of Taxation of Nigeria (CITN)

During the formal commissioning of the David Olorunleke House—named after Chief David Olorunleke, widely regarded as the "Doyen of Taxation" in Nigeria—the CITN President, Mr. Samuel Agbeluyi, emphasized the importance of addressing the disconnect between tax payments and tangible benefits for citizens.

The Chartered Institute of Taxation of Nigeria (CITN) has highlighted reasons why Nigerians often fail to pay taxes and proposed strategies for encouraging tax compliance at both local and national levels.

During the formal commissioning of the David Olorunleke House—named after Chief David Olorunleke, widely regarded as the "Doyen of Taxation" in Nigeria—the CITN President, Mr. Samuel Agbeluyi, emphasized the importance of addressing the disconnect between tax payments and tangible benefits for citizens.

Agbeluyi stressed the need for building confidence in the tax system. He urged the government, both at the federal and subnational levels, to utilize tax revenues effectively for public welfare. By fostering voluntary compliance, reducing collection costs, and ensuring transparency, Nigeria can create an enduring tax system that supports a civilized environment.

While acknowledging the challenges, Agbeluyi emphasized that tax revenue remains the primary avenue for sustainable development. Efforts are also underway to address issues related to non-state actors collecting taxes without proper accountability, including collaboration with the Office of the National Security Adviser (NSA).

In summary, enhancing tax compliance and transparency is crucial for Nigeria's economic growth and social progress.

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