A prominent human rights lawyer, Femi Falana, raised concerns about Nigeria’s weak tax enforcement system, revealing that oil and gas companies owe $6 billion in unpaid taxes.
Speaking at the 27th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja, Falana criticised the federal government for allowing such massive revenue losses while borrowing to fund national budgets.
He called for greater transparency and accountability in the tax system.
Tax Without Representation
Falana criticised the country’s failure to ensure “taxation with representation” and argued that the government could not demand taxes from citizens without showing clear benefits in return.
Read Also; Marketers’ Doubts: Dangote Insists Refinery Can Meet Domestic Demand
Moreover, he highlighted the proliferation of taxes, with some policies listing over 60 taxes, far more than the original 25.
Oil Firms Withhold Billions In Taxes
He revealed that, according to a September 2023 report, oil companies withheld $6 billion in taxes, yet two months later, the government borrowed ₦2.1 billion to fund the budget.
In addition, Falana condemned the government’s silence over the alleged misuse of a ₦3.4 billion COVID-19 loan.
Calls For Reform And Technology
Also, the Executive Chairman of the Zamfara State Internal Revenue Service, Rakiya Ahmed, echoed concerns about tax compliance, noting corruption and lack of transparency as major barriers.
She also called for the use of technology to track tax evaders and expand the tax net.
Trust And Simplicity Key To Compliance
Ultimately, both panelists called for urgent tax reforms.
They urged the government to restore public trust, simplify tax laws, and clearly show that tax revenues benefit the public.
Without this, compliance will remain elusive.