Senator Adams Oshiomhole, representing Edo North in the National Assembly, has intensified public discussion on Nigeria’s tax reforms by characterising resistance to Value Added Tax, commonly referred to as VAT, as a uniquely Nigerian phenomenon and stressing that deliberate tax evasion must attract criminal sanctions, including imprisonment.
Speaking on Channels Television’s Politics Today programme in Abuja, the former Edo State governor described the fresh tax laws as consistent with the values of a progressive government and said that opposition to VAT reflects deep misconceptions about taxation across broad sections of the Nigerian populace. He said the newly enacted tax laws deliberately place a higher burden on high-income earners while ensuring that low-income earners are exempt or protected, and that this structure aligns with international best practice and principles of equity in public finance.
Oshiomhole said that “governments do not earn money; citizens earn income, and the government taxes those earnings whether individual or corporate,” asserting that tax revenues constitute the principal basis for state annual revenue and should be treated with respect and enforced rigorously. He emphasised that tax compliance is not merely a civic obligation but a legal requirement, warning that those who decline to pay or manipulate tax records should face prison terms, a stance he said reflects how seriously governments treat breaches of tax law.
On VAT, he said the levy primarily applies to luxury and non-essential products, and he questioned why Nigerians object to paying VAT domestically while accepting similar charges in foreign jurisdictions such as London, America, and Dubai without public outcry. Under the newly enacted Tax Laws, which kicked off this year, the government is seeking to broaden the tax base, improve collection efficiency, and address structural revenue shortfalls that have long afflicted the nation’s economy.
This reform introduced updated tax instruments and enforcement mechanisms designed to modernise the nation’s tax system, expand compliance, and embrace digital administration, with explicit penalties for non-compliance. Under the Act, penalties for serious breaches include substantial fines and imprisonment for designated offences. For example, failure to register for tax obligations, failure to file required returns, or obstruction of tax officers can attract financial penalties and custodial sentences as part of a wider suite of measures meant to deter non-compliance.
The enactment of these provisions has been part of a broader governmental strategy to shore up non-oil revenue, which is seen as critical for sustaining public services, infrastructure development, and economic stability in the face of fluctuating global oil prices. Historically, Nigeria’s tax yield has remained low relative to its economic potential, with authorities and experts repeatedly highlighting endemic tax evasion as a contributor to gaps in public funding. Past revenue data have indicated that substantial amounts are lost annually due to non-compliance and under-reporting, thereby aggravating the fiscal pressures faced by successive administrations.
Samuel Aina