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Taxation: A two-way social contract By Dapo Okubanjo

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3 years ago

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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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Boko Haram Demands $300,000 Ransom For Abducted Borno Ex-LG Chair, Another Victim

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12 hours ago

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January 11, 2026

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A new video has emerged showing two men reportedly kidnapped by Boko Haram insurgents in Borno State, pleading for assistance to secure their release.

 

One of the captives, former Biu Local Government Area Chairman Hassan Biu Miringa, revealed that their abductors are demanding a $300,000 ransom.

 

Miringa said he and another individual were taken in December 2025 and have remained in the custody of the militants.

 

In the video shared by Zagazola Makama, Miringa introduced himself, saying: “I am Hassan Biu Miringa, former Chairman of Biu Local Government from 2020 to 2022. Four years after my tenure, we were kidnapped by the soldiers of Khilafa about two weeks ago. Alhamdulillah, we are still alive, but we urgently need help to save our lives.”

 

He added that negotiations with the kidnappers had been underway, with some preliminary agreements reportedly reached.

 

“We have engaged them on four separate occasions and reached an understanding. We appeal to our leaders, especially Borno State Deputy Governor Alhaji Usman Umar Kadafur, the National Assembly representative for Biu, Kwaya, and Shani Hon. Betera Aliyu, as well as our community leaders, to temper justice with mercy and assist us. We are their children and have been working together,” Miringa said.

 

He confirmed the ransom demand, explaining that each captive is expected to pay $150,000, totaling $300,000 for their freedom, and pleaded for urgent intervention to reunite with their families.

 

The video highlights ongoing concerns over kidnappings and insecurity in southern Borno State, which have persisted despite government efforts to curb insurgent activity in the region.

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How Rivers Women Spread Wrappers For Wike’s Motorcade During Port Harcourt Visit

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1 day ago

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January 10, 2026

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The Minister of the Federal Capital Territory, FCT, Nyesom Wike, on Saturday visited Port Harcourt City Local Government as part of his “thank you” visit across Rivers State.

 

Upon his arrival, a group of women displayed a symbolic gesture of loyalty by spreading their wrappers on the ground for his motorcade.

 

The women and supporters of the Minister were in a jubilant mode as Wike drove on the wrappers.

 

Wike has been going around local governments in the state to appreciate them for their support while reeling out moves ahead of the 2027 general elections.

 

In the course of his visits, the Minister had fired several salvos at political actors in the state, warning that their sudden support for President Bola Tinubu won’t secure them any ticket in 2027.

 

Wike also renewed rivalry with Governor Sim Fubara over the leadership control of the political space in the state.

 

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Impeachment Proceedings Against Fubara, Deputy Still Active – Rivers Assembly

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2 days ago

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January 10, 2026

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The Rivers State House of Assembly has officially reaffirmed that the impeachment proceedings against Governor Siminalayi Fubara and his deputy, Prof. Ngozi Odu, are ongoing and have not been suspended.

 

The Assembly said the process is still ongoing and is being conducted strictly in line with constitutional provisions.

 

This was contained in a statement issued on Friday by the Chairman of the House Committee on Information, Petitions and Complaints, Hon. Enemi George.

 

According to the statement, the impeachment process, which began on Thursday, January 8, 2026, remains on course in line with the 1999 Constitution of the Federal Republic of Nigeria (as amended).

 

The lawmakers disclosed that separate notices of allegations bordering on gross misconduct have been served on both the governor and his deputy in line with Section 188 of the Constitution.

 

“The notices of allegations of gross misconduct against the Governor and the Deputy Governor have been duly forwarded to them by the Speaker of the House, Rt. Hon. Martins Amaewhule, and the House is awaiting their responses,” the statement said.

 

The Assembly maintained that it is constitutionally obligated to act in the interest of the rule of law and ensure that no public office holder acts outside legal boundaries.

 

Reacting to reports suggesting that the impeachment move had been halted, the House accused some individuals and media outlets of deliberately spreading misinformation to mislead the public and stir tension between the legislature and Rivers residents.

 

The lawmakers described such reports as false and insisted they would not succumb to intimidation, threats, or blackmail.

 

“We are aware of renewed attempts by certain persons and media platforms to misinform the public by claiming that the impeachment process has been discontinued. The public should disregard such falsehoods, as the process remains active,” the statement added.

 

The Assembly reaffirmed its commitment to democratic principles and constitutional responsibilities, stressing that it would not be distracted by what it termed “cheap propaganda.”

 

It also appreciated the people of Rivers State for their support and prayers amid the ongoing political developments and extended goodwill to Nigerians committed to the nation’s democratic journey.

 

JomogNews reports that during Thursday’s plenary session, presided over by the Speaker, the Majority Leader, Major Jack, formally read the notice of allegations of gross misconduct against Governor Fubara on the floor of the House.

 

 

 

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