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Taxation: A two-way social contract By Dapo Okubanjo
It is the norm in every society, for the authorities and the people to have what is loosely referred to as a social contract or an implicit agreement.
It is a theory that is as old as humanity itself and it presupposes that a people’s moral and political obligation depends on an agreement among them.
Taxation is seen as one of those obligations that the citizenry in every country is expected to abide by, but in Nigeria this is one social contract that has for years been difficult to keep.
We are a country with the largest economy in Africa in terms of Gross Domestic Product (GDP) and at the last count, the size of Nigeria’s economy is way ahead of South Africa and even Egypt.
But in terms of GDP to tax revenue, the country is not among the performing countries of the world and does not even compare with the two African countries mentioned above. In fact the International Monetary Fund (IMF) has been concerned to the extent that it recently urged Nigeria to improve on its tax revenue which stood at 6% of its GDP as at 2022.
That has been the highest the country has done in recent years but the Federal Inland Revenue Service (FIRS) on the watch of Muhammad Nami, the Executive Chairman, said it plans to raise the tax revenue to GDP ratio to 17% this year.
On paper, this looks ambitious but the FIRS has in the last few years consistently surpassed old records and broken new grounds, so it may not be ideal to bet against the FIRS achieving a quantum increase in the country’s tax revenue.
*Chicken or egg dilemma*
Paying tax is a chicken and egg situation in many parts of Nigeria. It is usual to hear arguments among Nigerians revolving around inadequate infrastructure or outright lack of it in their immediate communities.
But the truth is funds need to be in public coffers before these things could be done so the question of what comes first between citizens paying the necessary taxes as at when due or government putting up infrastructure and providing social amenities does not even arise.
An aspect of the argument that vexed citizens make against payment of taxes is that not much is visible in terms of social amenities and infrastructure after citizens have done their side of the social contract.
This may be true considering the President Muhammadu Buhari administration had in the past raised posers on what previous administrations had done with public funds based on what it met on ground.
But this is not enough to kick against tax payment especially at a time of dwindling revenue from crude oil. It is ideal for the chicken to be well fed before it could lay eggs.
And to put the issue in proper perspective, it is at a time of a global oil slump that the Buhari administration has been able to depend on other revenue sources and chief amongst these is tax revenue, to deliver so much.
It is through these taxes that government is able to fund road construction, bridges including but not limited to the Loko – Oweto Bridge and Second Niger Bridge, provide medical care (Primary Health Care Centres across the country), build schools and equip them with the necessary infrastructure.
It is pertinent to me to also note that the interventionist fund TETFUND was able to disburse over N2 trillion in about 10 years to several tertiary institutions and this was made possible from the Tertiary Education Tax, which is 2.5% of the assessable profit of companies operating in Nigeria,
When the FIRS made its record breaking tax collection of N10.1 trillion in 2022, it attributed the feat to its internal revamp, its data-centric reforms, and its improved collaboration with all stakeholders including tax payers—emphasising that it recognizes the role that the citizenry plays in achieving its set goal.
And now that the agency has raised the bar in tax collection, the good job that the President Buhari administration is doing in ensuring that Nigerians see where their tax is going would be a further boost to FIRS target for 2023.
So it is absolutely necessary that Nigerians continue to keep their side of the social contract which taxation represents and government, whether the incumbent or the incoming, will have little or no reason to ensure that the people reap the necessary benefits in terms of provision of social amenities.
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Ignore Fake February 2 Sit-at-Home Order, IPOB Lawyer Tells South-East Residents
A human rights lawyer and lead counsel for the Indigenous People of Biafra, Sir Ifeanyi Ejiofor, has urged South-East residents to completely ignore what he described as a “fraudulent” sit-at-home order allegedly scheduled for Monday, February 2, 2026, by a faction of the group.
Recall that the pro-Biafran group, through its spokesman Emma Powerful, had directed a sit-at-home on February 2 across the region in solidarity with traders at the Onitsha Main Market.
Powerful said the total shutdown in Biafraland is a direct, peaceful, and unified response to the actions of Anambra State Governor, Prof. Chukwuma Soludo, who ordered the closure of the Onitsha Main Market for one week.
But in a counter statement released on Saturday, Ejiofor said the source behind the directive, operating under the guise of “Emma Powerful,” has been compromised and is acting against the collective interest of Ndi-Igbo.
He insisted that IPOB has formally and decisively distanced itself from the false sit-at-home order and directed Ndi-Igbo to go about their lawful activities without fear.
The statement read in part: “Once again, the well-worn theatre of misinformation has opened its curtains, this time with a particularly lazy script and an insultingly predictable cast.
“Late yesterday, a report was widely circulated alleging that a total lockdown of Ala-Igbo had been ordered under the guise of a sit-at-home directive purportedly issued by ‘Emma Powerful,’ slated for Monday, February 2, 2026.
“Let it be stated clearly, unequivocally, and without ambiguity: this directive is fake, a phantom, a calculated falsehood.
“Upon careful inquiry and diligent verification, especially considering the delicate and hard-won calm presently returning to our homeland, it became glaringly obvious that the so-called ‘Emma Powerful’ platform has been fatally compromised.
“It has been hijacked by vested interests whose business model thrives on fear, disruption, extortion, and the cynical exploitation of vulnerable communities.
“The peaceful global movement of the IPOB has formally and decisively disowned this fabricated publication, categorically distancing itself from the false sit-at-home order and directing Ndi-Igbo to go about their lawful and normal activities without fear.
“Going forward, the message from IPOB is unmistakable: any publication attributed to ‘Emma Powerful’ should be treated with extreme suspicion, if not outright contempt.
“Frankly, one cannot but express astonishment, bordering on disbelief, that at such a critical juncture, when relative peace is cautiously resurfacing in Ala-Igbo, anyone would recklessly circulate information capable of reopening wounds and inviting criminal infiltration.
“History has taught us, at unbearable cost, what happens when fake directives fall into the hands of violent opportunists masquerading as enforcers.
“It is therefore no longer sufficient to merely advise our people to ‘ignore’ publications from this source. The time has come for greater clarity and firmness. The platform known as ‘Emma Powerful,’ in its current corrupted state, has positioned itself as an adversary to Ala-Igbo’s peace, progress, and collective well-being.”
According to Ejiofor, the peaceful global movement must go further by publicly and definitively explaining why this source has become unreliable, compromised, and hostile to the collective interest of Ndi-Igbo. Silence, ambiguity, or polite distancing, he said, only leaves room for further abuse.
“A masquerade that dances with fire should not be mistaken for a messenger of truth,” the statement concluded.
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Joint Task Force Crushes Terrorist Cells In North East, Heavy Weaponry Seized
In recent operations across the North East, troops of the Joint Task Force Operation HADIN KAI (OPHK) have neutralized scores of terrorists and recovered a significant cache of arms and ammunition.
Lieutenant Colonel Sani Uba, Media Information Officer, Headquarters Joint Task Force (North East) in a statement said intelligence has confirmed the killing of JULAIBIB, a top ISWAP commander operating within the Gujba axis of the Timbuktu Triangle, during an encounter around Kimba, Damboa LGA of Borno State, on 30 January 2026.
According to the statement, the elimination of the terrorist leader has thrown ISWAP elements in the area into disarray, with several fighters reportedly neutralised during the operation.
In a related operation, troops of OPHK, working in collaboration with the Civilian Joint Task Force, neutralised 3 terrorists during a well-coordinated ambush between Ngazalgana and Lamusheri communities in Borno State.
It said the operation followed credible intelligence on insurgent movements in the area, as troops laid an ambush along the identified route and engaged the terrorists with effective firepower, resulting in the neutralisation of 3 insurgents, while others fled with gunshot injuries.
The statement said troops recovered two AK-47, adding that the operation forms part of sustained efforts to deny terrorists freedom of movement and degrade their operational capabilities across the Theatre.
It said troops also recorded multiple successes in Adamawa State, adding that on 29 January, 2026, troops responded swiftly to a distress call from Barama community, Mubi North LGA, foiling an armed robbery attempt. Two armed robbery suspects attempting to attack a student of the Federal Polytechnic, Mubi, were arrested. One suspect sustained a gunshot wound to the thigh while attempting to confront the troops and was evacuated to the Federal Medical Centre, Mubi, for treatment.
The suspects were subsequently handed over to the Nigeria Police for further investigation. Items recovered include 3 cutlasses, 2 laptops, 4 mobile phones, and one power bank.
News
Appeal Court Affirms Death Sentences for Five Offa Bank Robbery Convicts
The Court of Appeal sitting in Ilorin, Kwara State has affirmed the death sentences passed on five 2018 Offa robbery convicts.
The court dismissed their appeals as lacking merit.
The Director of Public Prosecution (DPP) in the state, Mohammed Akande, who witnessed the proceedings, said that the three Appeal Court judges unanimously agreed on the judgement and affirmed the verdict of the state High Court condemning the five persons to death by hanging.
“The Court of Appeal, Ilorin Division comprising of Hon. Justice Ridwan Maiwada Abdullahi JCA, Hon. Justice Gabriel Kolawole JCA and Hon. Justice Abdul Dogo today, Friday affirmed the judgment of Hon. Justice H. A. Saleeman of the Kwara State High Court, that sentenced the Appellants: Niyi Ogundiran, Salawu Azeez, Ibikunle Ogunleye, Ayoade Akinnibosun and Adeola Abraham to death by hanging for the involvement in the Offa Bank Robbery”.
Another official of the Court also said that the appellate court rejected all the grounds of appeal filed by the convicts and ordered their immediate return to prison custody.
“The court dismissed all their grounds of appeal and upheld their convictions. They have been taken back to prison,” the official said.
The official said that the arguments raised at the Court of Appeal were unconvincing and may not succeed if repeated at the apex court.
It is recalled that Ayoade Akinnibosun, Azeez Salahudeen, Niyi Ogundiran, Ibikunle Ogunleye and Adeola Abraham were convicted of armed robbery, illegal possession of firearms and culpable homicide.
A sixth suspect, Michael Adikwu, a retired police officer, died in custody before the commencement of the trial.
At least 32 people were killed, including nine police officers, two of whom were women, making it one of the deadliest bank robberies in Nigeria’s history.
Justice Haleemah Saleeman of the Kwara State High Court had earlier sentenced the five convicts to death by hanging after a trial that lasted about six years and attracted nationwide attention.
In her judgment, which lasted over four hours, Justice Salman held that the prosecution proved its case beyond reasonable doubt.
She said the convicts “acted contrary to the law and allowed their connections with those in power at the time to lead them astray”.
In addition to the death sentence, the trial court also sentenced them to three years’ imprisonment for illegal possession of firearms, in line with provisions of Nigeria’s penal laws.
Lead prosecution counsel, Rotimi Jacobs (SAN), described the appellate court’s decision as thorough and well considered, despite the prolonged delays that characterised the trial.
On the defence side, Abdullah Jimba, counsel to one of the convicts, said that preparations were underway to pursue a final appeal at the Supreme Court.
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