A former World Bank political economy specialist and academic, Dr. Mahmoud Alfa, has issued a strong appeal to the public. He urges Nigerians to fully support the upcoming 2026 tax reforms. Alfa insists that national cooperation is essential to supercharge President Bola Tinubu’s economic vision.
In a statement released in Abuja on Friday, Alfa, who is originally from Kogi State, praised the administration’s “gutsy moves.” He acknowledged these reforms are already showing early economic gains, despite lingering public skepticism.
Nigeria faces a significant challenge: it is drastically under-taxed compared to global averages. Furthermore, the current system is choked by overlapping levies, which disproportionately harm small traders.
The Tax Obstacle: Duplicate Levies vs. Accountability
Businesses are struggling to benefit from ease-of-doing-business initiatives. This is largely due to the burden of duplicate fees and overlapping taxes. Surveys indicate widespread public frustration. Citizens feel that government progress is too slow compared to the financial burden they carry.
Alfa, who heads the Vibranium Group, argues that taxation is the fuel for development. He contrasted Nigeria with top global nations that thrive on a strong tax base. Nigeria, conversely, relies heavily on debt for essential services like roads and power. He identified the cause of this gap:
“Folks dodge taxes; accountability’s thin. It’s a vicious cycle—evade or embezzle, both crimes.”
Rebuilding Trust: Contribution and Delivery
Dr. Alfa believes the solution lies in a mutual pact between citizens and leaders. The public must contribute their taxes, and leaders must deliver transparency and results.
- Tax as Investment: Tax funds should be viewed as an investment directly powering schools, hospitals, and job creation.
- Ending the Cycle: The dual problems of tax evasion and misuse of funds must be tackled simultaneously.
He commended Taiwo Oyedele, the head of the fiscal reform committee, for successfully explaining the complex changes to the public.
States Poised for N4 Trillion Windfall
Key details regarding the financial benefits of the reform were recently released. Last week, Oyedele provided significant projections during a report launch.
The forthcoming changes could see state governments receive a major financial boost:
- VAT Shake-up: States are set to receive a substantial 55% share of the Value Added Tax (VAT) revenue starting in 2026.
- Annual Haul: This redistribution could generate over (N4 trillion) annually for states.
- FAAC Surge: The total revenue shared through the Federation Account Allocation Committee (FAAC) already doubled in 2024 to (N11.4 trillion), up from (N5.4 trillion) previously.
The Public’s Role in Economic Revolution
Public skepticism toward tax compliance is understandable. However, Alfa believes a new dawn is possible. He urged citizens to embrace the necessary reforms while simultaneously demanding rigorous oversight from their leaders.
A properly taxed and trusted Nigeria, he argued, will become self-reliant and economically prosperous.
The central question remains: Will the Nigerian public buy into the new tax system and contribute to national progress, or will distrust lead to continued resistance?
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