By Omoniyi David
Former President of the Chartered Institute of Taxation of Nigeria (CITN) and President of the International Centre for Tax Research and Development, Morenike Tejuade Babington-Ashaye, has called for a complete overhaul of Nigeria’s tax system to address poverty, inequality, and poor governance.
Speaking at the 20th Anniversary Tax Debate of the University of Lagos (UNILAG) Tax Club, Babington-Ashaye warned that the 2024 tax reform, though promising, risks failure if issues like policy flaws, corruption, and weak accountability are not resolved.
She criticised the neglect of taxation’s social benefits, arguing that an effective tax system must ensure better living conditions for citizens, including access to quality education, healthcare, and environment.
She urged the National Assembly to legislate cash benefits for unemployed individuals, the elderly, the physically challenged, and children born to unemployed parents, describing these as basic rights of citizens.
On the theme ‘The Political Economy of the Nigerian Tax Reform and its Social Implications,’ Babington-Ashaye asserted that tax is the price of lawful citizenship.
She cautioned against excessive tax exemptions, noting that they weaken government’s political authority.
She also urged the government to abandon its “colonial and military mentality of governance by force” and advocated for the use of mineral resource revenues to directly alleviate household poverty.
“Part of the revenue from mineral resources must be shared equally with households for peace, happiness, and prosperity,” she said.
Highlighting the loss of about $18 billion annually to multinational tax evasion, she called for stricter enforcement, sector-specific taxation, and the closure of loopholes.
She also blamed inefficiency in the tax system on multiple taxes and poor coordination among revenue agencies.
Babington-Ashaye emphasized the need for transparency and accountability in tax revenue management. “Government owes citizens adequate information on what taxpayers’ money is used for.
Budgeting must be for the people, not just ministries and agencies,” she concluded.
