Lateef Adams

The Tinubu administration’s proposed tax reform bill, before the National Assembly, has sparked intense debates and widespread opposition. While the government presents the bill as a solution to Nigeria’s revenue challenges, its provisions reveal a regressive and anti-people approach that prioritizes increased revenue collection over genuine economic growth or the welfare of the masses.

The bill’s central thrust is not to address Nigeria’s productivity deficits or to grow the economy through sustainable development initiatives. Instead, it seeks to extract more from an already burdened populace. A glaring example is the proposed ₦50 levy on every transaction above ₦10,000, a policy that disproportionately affects low-income earners and small businesses.

Despite the widespread criticism this bill has generated, particularly from the northern region, President Tinubu has publicly insisted that the bill is “here to stay,” displaying a concerning lack of responsiveness to the legitimate grievances of Nigerians.

The government has employed a coordinated propaganda effort to sell the bill to Nigerians, with the Taiwo Oyedele-led Presidential Tax Reform Committee touring the country to promote it as beneficial to the poor. This tactic mirrors earlier campaigns around subsidy removal, which falsely claimed it would benefit ordinary citizens while the opposite has proven true. Such campaigns are a deliberate strategy to mislead the masses and obscure the bill’s true intent: to deepen the neoliberal attack on ordinary Nigerians while protecting and enriching the ruling class.

The VAT Hike and Elite Power Struggles

One of the most contentious provisions of the bill is Section 146, which proposes to increase the Value Added Tax (VAT) from the current 7.5% to 15% over the next four to five years. This measure is particularly alarming given the current economic climate, marked by a staggering 34.6% inflation rate and the persistent failure to implement the national minimum wage in many states.

While the proposed VAT hike will undoubtedly worsen the cost of living for ordinary Nigerians, the ruling elite’s debates about the bill have been narrowly focused on how the VAT proceeds will be shared among states, rather than addressing the bill’s negative impact on the masses. This power struggle among the elite highlights their self-serving interests and underscores the lack of genuine concern for the economic well-being of the average Nigerian.

Section 59: Undermining Education

Another deeply troubling provision of the bill is Section 59, which proposes to allocate zero funding to the Tertiary Education Trust Fund (TETFund) from 2030, redirecting those funds entirely to the Student Education Loan Fund. While this may appear to support student financing, it is, in reality, an attempt to further commodify education and make it inaccessible to children from ordinary working-class families.

For decades, TETFund has been a lifeline for Nigeria’s underfunded tertiary education sector, providing critical support for infrastructure development and research. Its existence is a direct result of the struggles and advocacy of education workers who fought for a better-funded educational system. Eliminating TETFund funding effectively dismantles this progress and shifts the financial burden onto students and their families, potentially forcing many out of higher education altogether.

This move is reminiscent of the propaganda used to justify subsidy removal, where similar claims were made that only the rich benefited. In reality, these policies disproportionately harm the poor, exacerbating inequality and social unrest.

Instead of introducing regressive tax measures, the government should focus on reforms that promote economic production, reduce wasteful spending, and tackle corruption in revenue collection. Moreover, the continuous imposition of higher taxes without addressing inflation, unemployment, and the lack of social safety nets reflects a government disconnected from the realities faced by the average Nigerian. This approach undermines public trust and deepens the existing economic divide.

The Tinubu tax reform bill represents yet another attempt by the ruling class to transfer the costs of their governance failures onto the shoulders of ordinary Nigerians. While the political elite focus on who gets the largest share of the VAT proceeds, the masses bear the brunt of a policy designed to perpetuate inequality and economic hardship. Instead of overburdening the masses, the government should focus on Increasing Productivity: by investing in infrastructure, agriculture, and industry to stimulate economic growth and create jobs. Reducing Wasteful Spending By cutting unnecessary government expenses and tackling systemic corruption, Funding Education and Healthcare and reducing inequality.

The Tinubu tax reform bill is not just a flawed policy—it is an attack on the economic rights and dignity of Nigerians. While the elite bicker over the allocation of VAT proceeds, the masses are left to bear the brunt of policies that exacerbate poverty, inequality, and social instability.

In a just and equitable society, taxation should serve as a tool for redistribution and social justice, ensuring that funding public welfare and social development falls primarily on those who can afford it the most. Rather than overburdening the already struggling working class with regressive taxes like the proposed VAT hike and transactional levies, the government should focus on taxing the massive profits of big businesses and the immense wealth of billionaires.

This approach would not only generate significant revenue but also address the structural inequalities that plague our economic system. Large corporations operating in Nigeria often enjoy tax holidays, loopholes, and minimal oversight, allowing them to maximize profits at the expense of public welfare. Meanwhile, ordinary citizens bear the brunt of harsh economic policies, such as subsidy removals, rising inflation, and reduced social spending.

By instituting a progressive tax system that targets corporate profits and high-net-worth individuals, the government can fund critical sectors like education, healthcare, and infrastructure. This would not only provide much-needed relief for struggling families but also lay the groundwork for sustainable economic growth.

Moreover, such a system would shift the narrative from exploiting the masses to holding the true beneficiaries of Nigeria’s wealth accountable. The billions of naira lost annually to tax evasion and avoidance by the wealthy elite could be redirected to empower communities, improve public services, and reduce poverty.

A government that prioritizes taxing the privileged few instead of exploiting the many demonstrates its commitment to equity, fairness, and the common good. Until Nigeria adopts such measures, policies like the Tinubu administration’s tax reform bill will continue to be seen as tools of exploitation rather than instruments of progress.

Labour unions, Civil society organizations, and well-meaning Nigerians must unite to resist this bill and demand a more inclusive economic model. Nigerians deserve a government that prioritizes their welfare, invests in sustainable development, and ensures equitable access to opportunities—not one that perpetuates the cycle of exploitation and oppression.