Business
Experts Want Strict Enforcement Of Tax Laws
Some tax experts have called for stricter punishment for tax defaulters, to make funds available for the provision of critical infrastructure and growth of the economy.
The experts, in separate interviews with The Tide source in Lagos, Monday also called for a probe of the tax records of politicians.
The experts spoke against the background of the recent revelation by the Federal Inland Revenue (FIRS) that close to 7,000 billionaires had defaulted in payment of tax.
Consequently, the FIRS said it would go after the defaulting taxpayers who were raking in billions in Nigeria and not paying taxes.
“This category of Nigerians has deprived the country of huge sums of money needed to build roads, hospitals, schools and others.
“Most developed and developing economies rely on tax for infrastructural development. There is need for stricter punishment on tax evaders in the country.
“Tax evaders are sent to jail in other climes,” Prof. Sheriffdeen Tella, a Senior Economist at the Olabisi Onabanjo University, Ago, Iwoye, said.
The economist insisted that the FIRS should probe the tax records of politicians who were spending millions of naira to collect forms for their party primaries.
The Director, Legal Services, Lagos State Internal Revenue Service (LIRS), Mr Seyi Alade, also attributed incessant tax evasion in Nigeria to non prioritisation of taxation by the Federal Government.
Alade said the federal government did not prioritise the issue of tax which could be used to develop infrastructure.
Alade explained that the revelation that more than 6,772 billionaires evaded tax meant that there was less revenue available to the government to fund critical infrastructure.
According him, such huge tax evasion was partly responsible for the level of the country’s rising external debt, because government is borrowing more to take care of the infrastructure gap.
“Taxation is a tool for economic management and development and should support sustainable growth and infrastructural development at all times.
“Payment of taxes is a civic responsibility of all legible tax payers and evasion of taxes is tantamount to depriving the economy of its sustainable means of economic development.
“Tax evasion is the bane of the tax system and it is also a criminal offence and should be strongly decried.
“Of course it will lead to tangible economic loss more so as revenue from oil is no longer stable,” Alade said.
The Assistant Director, Chartered Institute of Taxation of Nigeria (CITN), Mrs Oso Afolake, advised the federal government to streamline the taxation system for more revenue generation.
Afolake blamed the rampant tax evasion in the country to weak taxation system, which she said was fixable by the government.
She called for more stringent application of the nation’s tax statute by tax authorities against tax defaulters and also against entities that have statutory duties to remit taxes.
According to her, for multinationals like MTN and many others operating in Nigeria to evade tax, means lots of economic loss on the country.
She said it would impact on the economy negatively; making the tax to GDP ratio to remain low.
“Tax evasion results to reduction in revenue obtainable from taxes and this will deprive government the required resources to perform its statutory duties.
“Our government usually doesn’t give priority to the issue of tax, may be because of the resources at their disposal.
“It behooves on the government to restructure the tax system such that every legible taxpayer will be compelled to pay tax as at when due,” Afolake said.
The president, International Centre for Tax Research and Development, Mrs Morenike Babington-Ashaye, urged government to lay emphasis on building Nigerians’ attitude towards voluntary compliance to tax law through processes and procedures.
Babington-Ashaye argued that using the banks to go after defaulting taxpayers was not a legitimate process.
“Actually, I don’t believe the FIRS should be going beyond the law. The process by the FIRS is turning to be a military system.
“The only way they can do that is if they go through the judiciary process by taking the defaulting taxpayers to court. Then, the court makes a judgement that they pay penalty and interest,” she said.
Babington-Ashaye, also a founding member of the Chartered Institute of Taxation of Nigeria (CITN), described the FIRS’s process of asking the banks to seize money as ‘going through the back door’.
This, the president said might lead to customers not saving their money in the banks, thereby reducing their resources for operation.
“It will also encourage some individuals and companies to be transacting businesses in another companies’ names. So, the process is not legitimate.
“In the first instance the banks are not direct agents and do not have any judiciary position between the FIRS and the taxpayers,” she said.
A Tax Leader, PwC West Africa, Mr Taiwo Oyedele, described the process as unconventional, and that executing such order should be in accordance with the law to avoid negative impact on businesses and ease of paying taxes.
Oyedele advised that tax payers to pay attention to their tax affairs and discharge their tax obligations as and when due.
Business in Nigeria remain under pressure as a result of insecurity and erratic power supply which continue to stifle productivity in the country.
This is even as new data from the Central Bank of Nigeria (CBN) indicate sustained improvements in economic activity.
This was the response of businesses in the CBN’s October 2025 Business Expectations Survey (BES) and the Purchasing Managers’ Index (PMI) report.
While the PMI showed that economic activity expanded for the 11th consecutive month, the BES revealed that businesses are still grappling with crippling operational constraints that threaten to reverse recent macroeconomic gains.
According to the BES conducted between October 6 and 10, firms identified insecurity (71.8 points) as the most critical challenge affecting operations nationwide. This was closely followed by insufficient power supply (70.9 points), multiple taxation (70.2 points), high interest rates (68.4 points) and financial constraints (65.6 points). Analysts say these constraints underscore the depth of structural weaknesses confronting Nigeria’s private sector.
Despite these challenges, the survey reported a rise in business optimism. The Business Confidence Index increased to 38.5 points in October from 31.5 in September. Firms also projected confidence levels to reach 45.6 points in November, with expectations of further improvement over the next three to six months.
However, sector analysts warn that the optimism remains fragile due to the lack of significant improvements in the operating environment.
The BES further showed a modest rise in capacity utilisation from 60.4% in September to 62.0% in October, suggesting that businesses have yet to deploy their productive capacity amid ongoing disruptions fully.
In contrast to the structural constraints highlighted in the BES, the PMI report indicated strengthening economic momentum. The composite PMI rose to 55.4 points, reflecting expansion across major components such as output, new orders, employment, inventories, and supplier delivery times.
A sectoral breakdown showed that the agriculture sector recorded the most substantial improvement, with its PMI climbing to 57.5 points, marking 15 consecutive months of expansion. The services sector also expanded for the ninth straight month to 55.6 points, while the industry sector rose to 54.2 points, the highest in more than a year.
The CBN attributed the positive trends to improvements in the broader macroeconomic landscape, including declining inflation, which eased from 24.5% in January to 18.0% in September, and the year-to-date appreciation of the naira across both official and parallel markets.
The BES showed that the North-East posted the highest business confidence at 56.1 points, while the South-South recorded the lowest at 23.3 points, a trend linked to declining activity in oil-producing communities.
The Federal Government will on Tuesday, November 25, officially unveil a strategic programme for a free nationwide training of over 100,000 youth on financial literacy.
The Federal Ministry of Youth Development will launch the programme in collaboration with Investonaire Academy. Tagged, the “Financial Literacy, Investment, and Wealth Creation programme.”
The flagship initiative is designed to equip young Nigerians with essential financial skills, investment knowledge, and digital competencies for sustainable wealth creation.
A statement signed by the Director, Press and Public Relations, Federal Ministry of Youth Development, Omolara Esan, and made available to newsmen, confirmed that the launch of the programme, to be held in Abuja, would promote nationwide participation.
It added that the launch would bring together senior government officials, development partners, private sector leaders, and youth representatives to explore innovative approaches for improving financial capability and strengthening the economic prospects of young Nigerians.
Minister of Youth Development, Comrade Ayodele Olawande, would serve as the chief host, while the Minister of Women Affairs, Hajiya Imaan Sulaiman-Ibrahim, would grace the event as the Special Guest of Honour.
Also expected are representatives of key government institutions and private sector partners, including Dr Enefola Odiba, International Programme Director, Investonaire Academy, and Mr. Bashir Nurmohamed, Chief Executive Officer, Hantec Markets
The statement reads, “A major highlight of the event will be the unveiling of a free national financial literacy training programme targeting over 100,000 youths annually. The programme will be powered by a state-of-the-art Learning Management System (LMS) designed to enhance financial intelligence, investment capacity, and entrepreneurial readiness among Nigerian youth.
Lady Godknows Ogbulu
The chairman of the United Bank for Africa, Tony Elumelu, says Nigeria’s economic transformation will be driven by entrepreneurs, not government handouts or foreign assistance.
Elumelu, who spoke at the Grow Nigeria Conference 2.0 and themed ‘Empowering Nigeria’s Entrepreneurs: Building Institutions That Last’, in Lagos, Monday, said the nation’s future is already being shaped by business owners who refuse to settle for mediocrity.
Elumelu, who is also the founder of the Tony Elumelu Foundation, described Nigeria as an entrepreneurial nation but stressed the need to build institutions that can stand the test of time.
“Starting businesses is good. Sustaining them is critical, and that’s how we transform this economy,” he said.
He noted that many promising ideas fail because the systems and support structures necessary for growth are absent.
According to him, Nigeria’s renewal must come from the private sector, backed by strong governance frameworks and proper succession planning.
“Nigeria will not be built by government handouts or foreign aid. Government’s role is critical, but Nigeria will be built by entrepreneurs — by you, building businesses that create jobs, hope, and prosperity from the ground up,” he said.
Elumelu, however, emphasized that entrepreneurs cannot succeed in isolation.
“You need frameworks — clear governance, succession planning, and relentless focus on value. We need the right environment. We need a Nigeria where policies are predictable, infrastructure works, and financing is truly accessible,” he said.
He called for stronger alignment between public and private sector efforts, warning that progress would remain limited if institutions work independently rather than collaboratively.
Elumelu commended the Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii, for ongoing reforms within the agency.
He further lauded President Bola Tinubu for appointing young Nigerians to lead key institutions and for prioritizing youth entrepreneurship.
“Let us cut the bureaucracy. Make finance and opportunity real, not theoretical. Let’s help Nigeria’s entrepreneurs move from surviving to winning.
“Every job we create fights insecurity. Every thriving business increases our tax base and accelerates prosperity for all,” Elumelu added.
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