Opinion
Tax Evasion As A National Plague
Tax evasion can be described as an extension and part of the “419” culture which is common and widespread in Nigeria. Such economic crimes have been perfected by those who practice them, but such practices deserve serious attention and efforts be made to check them. Those who engage in tax evasion and similar economic crimes are usually not small persons but “big shots”.
The principle of taxation is based on the notion of what is known as horizontal equity, or the equal treatment of equals without discrimination. What is known as vertical equity is the redistribution of a nation’s wealth so that there are no extremes of wealth or poverty.
It is not a question of charity or poverty alleviation, but a question of sound political economy, a situation where a society does not breed predators and parasites. There is no doubt that there are such predators and parasites in Nigeria, operating as individuals, mafia or interest groups.
In modern societies, there are three varieties of taxes, namely: Direct taxes, which are paid by individuals on earnings from labour, rents, dividends and interests. This also includes corporate taxes calculated on taxable profits of companies. Then there is indirect taxes which includes levies on expenditure on goods and services of which the most commonly known is value added tax (VAT).
The third variety is wealth or property taxes, which includes levies on property, transfers of wealth or property, capital and securities or bonds. It is in the second and third category of taxes where real tax evasion and fraudulent practices abound most. Tax fraud is a universal practice but it thrives most in countries where record keeping is poor and where people can get away with manipulation and doctoring of documents.
Does the Nigerian business tycoon keep accurate and reliable records of his transactions and activities? Are there not Nigerians who own over 70 landed properties and huge investments located within and outside the country? How much do they pay annually as taxes, and do they ever admit that they are owners of such properties?
Either their wives are the owners or we find situations where children in secondary schools own properties worth billions of naira. Do we find genuine records of ownership of properties in Nigeria? Whether such properties are unoccupied mansions in Ikoyi, or a factory somewhere, can we find reliable records about their owners? There would always be controversies and counter-claims when a need arises for verification of such properties.
Two important factors about taxes are Equity, and Efficiency, without which, every system of taxation would be mere charade, characterized by fraud. Our system of taxation in Nigeria, associated with colonial exploits and brigandage, definitely introduced fraud, inequity and consequently, resistance by the masses.
Like current revenue sharing formula, taxation is perceived by the masses, not only as a social nuisance, but also a means of political patronage. Who are those who enjoy tax waivers as a way of encouraging them to create jobs for Nigerians and boost the economy?
Helpless civil servants, whose earnings are known and verifiable, are those who bear the brunt of taxation and don’t enjoy any waiver or patronage. Even pensioners, despite their ailing health and meager pensions, are not spared by ruthless tax collectors.
Taxation in Nigeria has not been characterized by equity and efficiency, a situation which gives rise to sharp practices in financial book-keeping and tax evasion by individuals and corporate bodies. A situation where highly-placed persons cannot make honest declaration of their assets, cannot foster equity. How would taxation be efficient where tax collectors get compromised or fear to assess the income of some people and tax them accordingly?
From personal income taxes, to revenue accruing from mineral oil, there are serious lapses and distortions in the country’s revenue profile. Similarly, expenditure patterns hardly elicit the confidence of the masses. How much of oil and tax-payers’ money do we spend on foreign travels, treatments, sponsorship of pilgrimages, fumigation to destroy rodents, etc, etc.
The incomes of those who make huge donations to political parties should be investigated and assessed for equitable taxation. But, the assessors and collectors are rarely strict or efficient in their task.
Dr. Amirize is a retired lecturer from Rivers State University.
e-mail:bamirize@yahoo.com.
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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