The Chartered Institute of Taxation of Nigeria (CITN) has outlined reasons why many Nigerians avoid paying taxes and suggested ways the federal and state governments can encourage tax compliance to support local and national development.Daily Trust reports.
CITN President Mr. Samuel Agbeluyi discussed these issues during the formal commissioning of ‘The David Olorunleke House,’ the CITN Abuja Liaison Office, named in honor of Chief David Olorunleke, recognized as the ‘Doyen of Taxation’ in Nigeria. Agbeluyi highlighted the significance of this event for an institute that began 42 years ago with fewer than 10 members.
Agbeluyi pointed out the challenge of Nigerians feeling the impact of the taxes they pay, attributing this to a trust deficit in the system. He emphasized that the lack of visible benefits from tax revenues undermines citizens’ willingness to fulfill their tax obligations.
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He advocated for better use of collected taxes by all levels of government to benefit the public, which would help rebuild confidence. “When the government uses collected taxes effectively for public good, it fosters trust. This trust leads to voluntary compliance, reducing collection costs and increasing funds available for public expenditure,” he explained. Agbeluyi stressed that building this confidence is a gradual process but essential for creating a sustainable, civilized environment through tax revenue.
Additionally, Agbeluyi addressed the problem of non-state actors collecting unaccounted taxes from Nigerians. He noted that efforts are underway to resolve this issue, including involvement from the Office of the National Security Adviser (NSA).
