The National Orientation Agency (NOA) has urged Nigerians to fulfil their tax obligations, saying tax compliance gives citizens the moral and legal standing to demand accountability from government.

A Programme Officer at the NOA, Abiodun Olayeni-Ali, made the remark on Thursday during an interactive session at the maiden edition of Civic Talks organised by the Centre for Inclusive Social Development in Abuja.

According to her, citizens who do not contribute to government revenue through taxes are in a weak position to question how public resources are managed.

“You have to pay your tax, and then you can hold your government accountable. Once you are not paying, it is difficult for you to really question government actions,” she said.

Olayeni-Ali lamented that many Nigerians do not pay taxes, noting that the responsibility is largely borne by civil servants and a limited number of salaried workers.

“The majority of Nigerians do not pay tax. It is mainly civil servants and some workers in private companies that really pay tax in this country,” she said.

She also alleged that some companies manipulate payroll records in order to reduce tax deductions from their employees.

The NOA official said the agency had launched nationwide sensitisation campaigns to educate citizens about the new tax reforms and address misinformation surrounding the policy.

According to her, the agency operates offices in all 774 local government areas and conducts public enlightenment through community meetings, radio programmes and stakeholder engagements.

She added that the campaign also forms part of efforts to rebuild trust between citizens and government through the National Value Charter initiative.

Meanwhile, business owners and informal sector operators who attended the event expressed concerns about the practical impact of the new tax reforms on already strained livelihoods.

Some participants said drivers and small traders often earn little after accounting for fuel, maintenance and other operating costs, questioning how they would meet additional tax obligations.

Responding, a Senior Programme Officer at the International Budget Partnership, Iniobong Usen, said the reforms were designed to address structural weaknesses in Nigeria’s tax system.

According to him, the previous framework placed a heavier burden on low-income earners, while wealthy individuals often paid little or no tax.

“Our tax system was regressive. The poorest people carried the highest burden while the richest often paid less than they should,” he said.

Usen explained that the new personal income tax structure seeks to reduce pressure on low- and middle-income earners while increasing contributions from higher-income individuals.

He added that the reforms also introduced a presumptive tax system for informal sector operators who do not maintain financial records.

“For small business operators who cannot keep records, the government proposes that they pay about one per cent of their turnover as tax,” he said.

A tax consultant and Managing Partner at Lefort Consulting Limited, Toyin Olufon, said the nationwide debate following the announcement of the reforms showed growing public interest in fiscal policy.

She noted that companies with annual turnover below N100 million and net assets below N250 million would be exempt from company income tax, allowing small businesses to grow before facing heavier tax obligations.

Olufon also said several existing levies had been consolidated into a single four per cent development levy to simplify compliance.

Another tax consultant, Telvin Inalegwu, urged Nigerians to become more involved in governance by monitoring government spending.

“The tax we are talking about funds the national budget, but many Nigerians do not follow how the budget is implemented,” he said.

Inalegwu added that active citizen oversight of public budgets and procurement processes would help reduce misuse of public funds.

In June 2025, President Bola Tinubu signed four major tax reform bills into law, including the Nigeria Tax Act, aimed at modernising the country’s tax system and improving revenue generation.