- CITN President Agbeluyi highlights a “trust deficit” where Nigerians doubt tax usage, discouraging them from fulfilling tax obligations
- Agbeluyi urges government transparency to rebuild trust and encourage voluntary tax compliance, reducing collection costs and increasing revenue
The Chartered Institute of Taxation of Nigeria (CITN) has highlighted several reasons why Nigerians often avoid paying taxes and proposed measures to encourage tax compliance at local and national levels. Mr. Samuel Agbeluyi, President of CITN, shared these insights during the commissioning of the ‘David Olorunleke House,’ the CITN Abuja Liaison Office.
Agbeluyi explained that the “trust deficit” between citizens and the government is a significant issue. Many Nigerians question how their tax payments are utilized, as they do not see tangible benefits or improvements from their contributions. This lack of trust discourages them from fulfilling their tax obligations.
To address this, Agbeluyi emphasized the importance of government transparency and accountability. He urged federal and subnational governments to use collected taxes for public good and to improve citizens’ lives visibly. The government can rebuild trust and encourage voluntary compliance with tax laws by doing so.
Agbeluyi noted that voluntary compliance would reduce tax collection costs and increase public expenditure revenue. He acknowledged that this is a long-term process but insisted that it is essential for achieving a civilized environment.
Additionally, Agbeluyi mentioned that the issue of non-state actors collecting unaccounted taxes from Nigerians is being addressed. This includes collaboration with the Office of the National Security Adviser (NSA) to ensure that all tax revenues are properly managed and accounted for.
The CITN’s advocacy focuses on building confidence in the tax system, which has been eroded over the years. By ensuring that tax revenues are used effectively and transparently, the institute believes more Nigerians will be willing to pay their taxes, ultimately benefiting the country.