Resistance to Nigeria’s sweeping new tax laws is being driven less by their legal content than by a deep trust deficit between government and citizens, senior political figures and legal experts have warned.
The Lagos State governor, Babajide Sanwo-Olu, the pro-chancellor of the University of Lagos, Wole Olanipekun, and the dean of its faculty of law, Abiola Sanni, were among speakers at the 2026 Lagos State Professorial Chair in Tax and Fiscal Matters public lecture, held in Lagos on Tuesday. The event brought together policymakers, academics and practitioners to examine the theme Navigating Nigeria’s tax reform: implications for fiscal federalism and state autonomy.
Their intervention comes amid mounting debate over President Bola Tinubu’s decision to press ahead with the implementation of four major tax laws from 1 January 2026, despite calls for a delay. The laws include the Nigeria Tax Act 2025, the Nigeria Tax Administration Act 2025, the Nigeria Revenue Service (Establishment) Act 2025 and the Joint Revenue Board (Establishment) Act 2025.
Speaking at the event, Sanwo-Olu said the reforms were necessary to reposition Nigeria’s economy but warned that they would fail without renewed public confidence in how tax revenues are managed.
“Without transparency and visible public value, compliance will remain weak, no matter how technically sound the reforms appear on paper,” he said, stressing that successful implementation would require collaboration across federal, state and local governments, as well as investment in technology and sustained public education.
Represented by the chairman of the Lagos Inland Revenue Service, Ayodele Subair, the governor said Nigeria had reached a critical point after decades of dependence on oil revenue and borrowing. He described the existing tax system as complex, narrow and often unfair, leaving many citizens unsure of what they owed or why they should pay at all.
“The new tax reforms address these challenges head-on,” he said, pointing to plans to simplify the tax code, consolidate multiple levies and expand the tax base to include digital economic activities. Taxation, he added, should be seen not as punishment but as a partnership between citizens and the state.
Lagos, he said, was backing the reforms by strengthening tax administration, deploying digital tools and committing to the prudent use of public funds.
Chairing the occasion, Olanipekun warned that no tax reform could succeed if it was perceived as opaque, inequitable or overly centralised. He recalled the 1929 Aba Women’s protest as a historical reminder of how fiscal policies could trigger resistance when questions of fairness and legitimacy were ignored.
“No country resolves insecurity, revitalises its economy or rebuilds public confidence without anchoring governance on a tax system that is fair, viable and designed with a good conscience,” he said.
Describing taxation as “the lifeblood of governance”, Olanipekun cautioned that allegations of post-legislative alterations to the laws, expanded enforcement powers for the Nigeria Revenue Service and fears of weakened state fiscal authority had heightened public anxiety.
“Efficiency must not be pursued at the expense of consent,” he warned, arguing that excessive concentration of fiscal power at the centre risked undermining federalism. He called for citizen-centred governance in which every naira collected was seen to translate into tangible improvements in quality of life.
Delivering the keynote lecture, Sanni said the central challenge facing the reforms was credibility rather than constitutionality. “The deficit between the people and the government is trust – trust that such money can be accounted for,” he said.
He argued that the current reforms focused too heavily on federal taxes, leaving states with limited power to correct inefficiencies in areas such as income tax, stamp duties and capital gains tax. This, he said, created a mismatch between responsibility and authority, while informal taxation by non-state actors in markets and motor parks would persist unless accountability improved.
Sanni called for state-led tax reforms, including the establishment of a single revenue agency in each state, stronger internal revenue boards and reforms to property and estate taxation. He also criticised what he described as “government taxing government”, citing the payment of VAT on public contracts as inefficient.
While warning that provisions allowing deductions from states’ allocations for tax defaults could provoke conflict, Sanni defended the timing of the reforms, arguing that they largely protected low-income earners and small businesses.
“A tax law that exempts about 90% of businesses and shields low-income earners cannot be described as anti-poor,” he said, though he acknowledged that charges such as stamp duties on electronic transfers would require further review.
The Lagos state commissioner for tertiary education, Tolani Sule, said the reforms could improve funding for education if implemented transparently, enabling better infrastructure, staffing and learning outcomes.
The lecture, hosted by the vice-chancellor of the University of Lagos, Folasade Ogunsola, ended with calls for closer collaboration between the National Assembly, the federal ministry of finance, the Nigeria Revenue Service and state revenue agencies.
Speakers agreed that without transparency, accountability and visible public benefit, fear and mistrust would remain the biggest obstacles to the success of Nigeria’s tax reform agenda.
