Let’s be honest with each other.
Nobody likes tax.
Not Nigerians. Not Britons. Not Americans. Not Canadians. Not South Africans. Not Kenyans. Not anyone.
If given a choice, most people would prefer to keep every naira, dollar, pound, or rand they earn. Tax is not loved anywhere in the world. It is endured.
But here is the uncomfortable truth Nigeria must face:
people do not hate tax as much as they hate paying into a system they do not trust.
And that is the heart of Nigeria’s problem.
Nigeria Is Not Over-Taxed. It Is Under-Trusted.
One of the loudest arguments in Nigeria today is that government is “squeezing” citizens. But when you step back and look at the numbers globally, a different picture emerges.
Nigeria’s tax-to-GDP ratio sits around 7–8%.
That means for every ₦100 produced in the economy, government collects less than ₦8 in tax.
Compare that to others:
• United Kingdom: about 35%
• Canada: about 33%
• United States: about 26–27%
• South Africa: about 25–27%
• Kenya: about 18–19%
• UAE: lower income tax, but heavy non-oil revenues through fees, VAT, and corporate contributions
Even within Africa, Nigeria is at the very bottom.
So no, Nigeria is not collecting “too much.”
In global terms, Nigeria is collecting very little.
So Why Does It Feel So Painful?
Because Nigerians are paying tax twice.
We pay tax, then:
• we pay again for power
• we pay again for security
• we pay again for schools
• we pay again for healthcare
• we pay again for roads
• we pay again for water
In countries with higher tax-to-GDP ratios, citizens complain loudly too. But there is one quiet difference: they can point to outcomes.
They may grumble about potholes, but they do not build the roads themselves.
They may criticise hospitals, but they do not pay for basic emergency care out of pocket.
They may dislike politicians, but they trust the system enough to comply.
In Nigeria, tax feels like money thrown into fog.
Personal and Company Taxes: Nigeria Is Still Low
Look closer.
• Nigeria’s top personal income tax rate is about 24%.
The UK and South Africa go up to 45%.
• Nigeria’s company income tax sits around 30% for large companies, but effective compliance is narrow.
In many Western countries, corporate taxes are aggressively enforced, and loopholes are harder to hide in.
The difference is not just rates.
It is credibility.
People comply when they believe:
1. the rules are fair
2. the burden is shared
3. the money is traceable
4. the benefits are visible
Nigeria struggles on all four.
Tax Is Law. But Trust Is the Fuel.
Yes, tax is law.
And no society can function without it.
But laws without legitimacy breed resistance.
Compliance without trust breeds resentment.
You cannot build a strong tax culture by enforcement alone.
You cannot threaten people into belief.
Every strong tax system in the world rests on an unspoken agreement:
“We will take from you — but we will also show you.”
Show you the schools.
Show you the hospitals.
Show you the infrastructure.
Show you the data.
Show you the accountability.
What Government Must Do to Win Trust
If Nigeria truly wants to grow tax revenue sustainably, the answer is not just new laws, higher rates, or louder enforcement.
The answer is radical clarity.
Government must:
1. Make tax usage visible
Not slogans. Not speeches. Dashboards. Projects. Line-by-line clarity ordinary people can understand.
2. Link taxes to outcomes
“This road was built with X amount of VAT.”
“This hospital upgrade came from company income tax.”
3. Simplify and stabilise rules
Constant changes breed fear. Fear kills compliance.
4. Broaden the base, don’t punish the few
When only the visible and formal are taxed, tax feels like oppression, not citizenship.
5. Treat taxpayers like partners, not suspects
Service builds cooperation. Hostility builds evasion.
6. Prove discipline before demanding sacrifice
Waste destroys moral authority faster than corruption alone.
A Hard Truth for Citizens Too
This conversation must be honest on both sides.
Nigeria cannot run on vibes and patriotism alone.
Schools, hospitals, defence, infrastructure — these require funding.
At some point, a nation must decide whether it wants a small government with low expectations, or a capable state with shared responsibility.
But that decision cannot be forced.
It must be earned.
The Future Is Still Possible
Nigeria does not need to copy the UK, the US, or Canada.
It does not need European tax rates or American complexity.
It needs credibility.
If government builds systems people can see, trust will grow.
If trust grows, compliance will follow.
If compliance follows, revenue will rise.
And when revenue rises, the state can finally serve rather than scramble.
Nobody likes tax.
But people will pay when they believe their contribution is not disappearing into darkness.
In the end, tax is not just a legal issue.
It is a moral one.
And trust is the currency that makes it work.
