Tinubu’s Tax Reforms and the Trust Deficit, By Bilkisu Ahmed Shekarau

Tinubu’s Tax Reforms and the Trust Deficit
By Bilkisu Ahmed Shekarau

For as long as I can remember, Nigeria has had one reform or the other aimed at fixing our broken tax system. Each one arrives with bold promises—more revenue, less corruption, better governance—but somehow, the results rarely match the energy of the announcement.

People cheer at first, then quietly return to the reality that nothing really changes. So, I find myself asking: Will this time be different?

The new tax reform signed by President Bola Ahmed Tinubu in 2024 is being praised in many circles as a game-changer. On paper, it introduces four new laws to modernize the way we collect and share taxes.

There’s even a fresh VAT sharing formula—30% based on consumption, 20% on population, and 50% shared equally among states. This looks like a fairer system. It might even encourage more economic activity at the state level.

But the real issue has never been about formulas or laws. It’s what happens after they are signed.

We’ve seen time and again how great policies get lost in translation—ignored by officials, misunderstood by citizens, or buried under poor communication and corruption.

Unless this new tax reform is followed by actual change on the ground, it may end up as just another document in a dusty government shelf. The reform promises to ease the tax burden on small businesses.

That’s a relief, especially for young entrepreneurs struggling to keep their ventures alive. But it also raises a deeper question: why did we ever allow these small businesses to be taxed so harshly in the first place, while big companies found clever ways to avoid paying their fair share?

Fixing Nigeria’s tax system means more than collecting money. It’s about trust. When people pay tax but see no improvements in schools, hospitals, or roads, resentment grows.

Many stop paying altogether. It becomes a cycle: no trust, no taxes, no development. This is where implementation matters. If the government wants this reform to succeed, it must take people along.

It must show—clearly and consistently—how tax money is being used. Citizens need to see value in the system. If not, all we’ll get is more resistance, more evasion, and more disconnection between the people and their leaders.

Going digital might help. A digitized revenue system could improve transparency, reduce loopholes, and make it harder to manipulate figures.

But digitization comes with its own risks—like hacking, technical glitches, and the challenge of training the people who will manage it. Still, I believe this reform has potential.

It could push Nigeria into a new phase of accountable governance and responsible citizenship. But only if the government listens, adapts, and remains honest with the people.

Taxation, after all, is not just about money. It’s about trust, service, and a shared vision of what our country should be. So, I return to the question: Can tax reform truly transform Nigeria?

The answer depends not on the laws passed, but on the actions that follow.

Bilkisu Ahmed Shekarau is a 300-level Mass Communication student at Nile University. She can be reached via: [email protected].