Taxes, Trust, and the Hard Questions Nigerians Are Asking
By CHINEDU EMMANUEL ODAH
A few days ago, I discussed tax compliance with a friend who runs a display shop in Mararaba Market, Karu Local Government Area of Nasarawa State, in Nigeria’s North-Central region. As we talked, other shop owners joined the conversation, phone sellers, tailors, and traders hustling to survive one day at a time. Different businesses, same worry.
People are not just afraid of paying taxes; they are afraid of being forgotten after paying. For many small business owners, taxes feel like another demand from a system that rarely shows up when it matters most. This shared concern explains why many Nigerians are anxious about the new tax system that took effect on January 1, 2026.
For many Nigerians, taxation is not just about deductions from income; it is about memory. Roads that were never repaired. Hospitals that never improved. Budgets that never translated into better lives. Emergency services are meant for everyone, but are accessed by only a few. Basic amenities meant to be shared, yet unevenly distributed. For many, scepticism is not rebellion; it is lived experience speaking.
From our work at Connected Development (CODE), one thing is clear here, that Nigeria’s challenge is rarely the absence of laws or reforms. The real problem is the weak link between public contribution and public accountability.
For me, this issue is personal. In my professional journey, I have seen how access to information and citizen participation can change outcomes. When people understand systems, budgets, contracts, or public funds, they move from frustration to engagement. The same lesson applies to taxation.
One of the biggest fears is that the new tax system simply means taking more money from people who are already struggling. But from my professional view as an accountant, the intention of this reform is different. It is designed to reduce pressure on low-income earners while ensuring that those who earn more contribute their fair share. For many average Nigerians, deductions are meant to be gradual, not punitive.
Still, one hard truth remains: good policy intentions alone do not rebuild trust. Trust grows when people can see results.
So, why does Compliance matter, even when trust is low? From our experience with the Follow The Money initiative, one lesson stands out: what cannot be traced cannot be challenged.
Let me explain it simply. When businesses and individuals operate completely outside the tax system, public money becomes harder to track. Records are weak, oversight is limited, and misuse becomes easier to hide. In simple put, compliance creates visibility, visibility creates data, and data strengthens our ability to ask informed questions.
Paying tax is not an endorsement of government performance. It is a claim to citizenship, documentation, and voice. You cannot meaningfully ask, “Where is our money?” if, on paper, you are not part of the system funding it.
Truth be told, public scepticism is rooted in real experiences. In many states in Nigeria, for example, education budgets existed on paper while classrooms lacked basic learning conditions, and pupils quietly dropped out of school. Many communities did not know what funds were approved, when they were released, or who was responsible for implementation. Similar patterns appear across sectors, health, water, and social services, where citizens are meant to benefit but lack the information needed to ask questions.
Distrust does not come from a refusal to contribute. It comes from watching public systems operate without explanation. Yet, these same experiences show that when spending becomes visible, when communities are informed, and when government is pushed to explain how money is used, engagement changes. Compliance moves from blind obligation to a conscious expectation of value.
At CODE, we have tracked public funds meant for schools, health centres, water projects, and livelihoods. Time and again, we have seen how citizen engagement helps close the gap between allocation and real impact.
Tax compliance should not stop at payment. It should continue with civic engagement, asking how funds are allocated, tracking implementation, and demanding transparency from those in power. A tax system without accountability deepens frustration, and accountability cannot survive without citizen participation. This is why movements like #FollowTheMoney matter.
Taxes are part of a social contract. Like many reforms before it, the new tax system will only matter if Nigerians stay engaged beyond compliance. Paying tax should strengthen our collective voice and not silence it. When we contribute, stay informed, and organise together, taxation becomes a pathway to justice, not just a revenue tool.
At the end, the real question is not whether Nigerians should pay taxes. The question is whether we will finally use our collective contributions to demand better.