A former Oyo State Commissioner for Information and Orientation, Mr. Taiwo Otegbeye, has defended Nigeria’s proposed tax reforms scheduled to take effect from January 2026, describing them as long overdue, progressive, and necessary for economic justice. He made these remarks during an interview on Inside Scoop, a current affairs programme aired on Adamimogo 105.1FM, Ibadan.
Speaking against the backdrop of rising inflation and widespread economic hardship, Otegbeye acknowledged that the timing of the reforms has fueled public anger. According to him, Nigerians are already under immense pressure due to the weakening naira, high cost of living, and shrinking household incomes. However, he argued that while the pain is real, it should not obscure the bigger picture of fairness and structural reform.
Otegbeye explained that Nigeria has historically operated a regressive tax system, where low- and middle-income earners bear the brunt of taxation while the wealthy largely evade responsibility. Civil servants and teachers, through the Pay-As-You-Earn (PAYE) system, have long been easy targets, while individuals earning billions often remained outside the tax net. The new tax law, he said, seeks to reverse this imbalance by introducing a truly progressive tax system.
Under the proposed framework, those who earn more will pay more, while low-income earners will be protected. Otegbeye highlighted the N800,000 annual income threshold, noting that anyone earning below this amount will pay little or no tax. Even for those earning above it, taxation will apply only to the excess, not the full income. “If you earn one or two million naira a year, the first N800,000 is not taxed. Only the margin is charged, at rates like 15 percent,” he explained.
He described this approach as a fair starting point that can be refined over time, stressing that its core strength lies in equity. According to him, much of the resistance to the reform is coming from high-income earners who are aware that the era of easy tax evasion is ending. “They know something is coming out of their pockets,” he said bluntly.
A major pillar of the reform, Otegbeye noted, is digitisation. With systems such as the Bank Verification Number (BVN) and National Identification Number (NIN) already in place, financial activities can now be more easily tracked. Multiple bank accounts, he argued, will no longer shield individuals from taxation, as all accounts are linked through a single identity.
He also weighed in on the controversy surrounding the National Assembly, where some lawmakers have claimed that the version of the tax law in circulation differs from what was passed. Otegbeye described this as an indictment of the legislature, insisting that discrepancies should have been resolved during the committee and scrutiny stages before the bill reached the presidency. Nonetheless, he maintained that any concerns should now be addressed through amendments rather than public grandstanding.
On fears that the reforms could further burden the unemployed and those struggling to survive, Otegbeye was emphatic that no one without income should be taxed. He stressed that unemployed Nigerians are not the target of the reforms and argued that, ideally, a functional social security system should support them. However, he admitted that Nigeria currently lacks the data infrastructure to implement such welfare schemes effectively.
He shifted the focus to government responsibility, stating that the real solution lies in tackling poverty and unemployment head-on. Agriculture, he argued, remains Nigeria’s strongest untapped asset. With serious investment in agro and agro-allied industries, millions of jobs could be created, food insecurity reduced, and livelihoods restored. “There is no reason any child should go to bed hungry in Nigeria,” he said.
Addressing calls for the federal government to suspend or delay the reforms due to public outcry, Otegbeye offered a provocative definition of “stakeholders.” According to him, the true stakeholders are not the wealthy elite but the masses living below the poverty line. He argued that leadership should prioritise the welfare of the majority rather than the comfort of those who can already fend for themselves.
However, he acknowledged a major challenge: public awareness. Many Nigerians, especially within the underclass, do not fully understand the tax reforms. He stressed the need for aggressive public enlightenment, urging government communication agencies to simplify the policy and explain it in indigenous languages such as Yoruba, Hausa, and Igbo. Without this, he warned, misinformation could undermine public trust and be weaponised during elections.
Drawing from electoral data in Oyo State, Otegbeye lamented widespread political apathy. Despite millions of eligible voters, fewer than one million people participated in the 2023 governorship election. This disengagement, he said, allows a small minority to determine leadership outcomes while the majority merely complain from the sidelines.
He coined what he called Nigeria’s largest political group the “Complainant Party of Nigeria” made up of citizens who criticise leaders but refuse to vote or engage politically. According to him, this culture only entrenches elite dominance, as high nomination fees and campaign costs shut out candidates from poorer backgrounds.
Nonetheless, Otegbeye insisted that the new tax regime, despite its challenges, is a step in the right direction. For it to succeed, he said, government must combine fair taxation with job creation, food security, improved communication, and greater citizen participation. Without these, reforms risk deepening distrust rather than delivering the equity they promise.
