Broken social contract, poor tax culture hindering compliance in Nigeria – Stakeholders say 

A weak social contract between citizens and government, alongside a poor tax culture, is undermining tax compliance in Nigeria, as many Nigerians remain hesitant to pay taxes amid concerns over how public funds are managed and the quality of public services, stakeholders have said, as ongoing reforms seek to rebuild trust and expand the country’s revenue base.

 

Speaking at the 2026 Tax Conference organised by BusinessDay in Abuja on Thursday, Michael Ango, Acting Executive Chairman of the Federal Capital Territory Internal Revenue Service (FCT-IRS), said one of the biggest challenges facing the tax system is public apprehension fuelled by misinformation about reforms.

 

According to Ango, negative and often uninformed commentary initially created fear among Nigerians about the ongoing tax reform efforts, though he noted that sustained public engagement by government officials had helped address some of the concerns.

 

He commended the efforts of the Presidential Fiscal Policy and Tax Reforms Committee and the Minister of State for Finance for helping to explain the reforms to Nigerians, stressing that the changes were designed to benefit citizens.

 

“For us as tax administrators, the next challenge is attitude. It also shows in our voting patterns and civic responsibility. Many people don’t renew their driver’s licence until they are forced to, and they don’t pay taxes until the tax authority sends a notice,” he said.

 

He noted that many Nigerians still struggle to see tax compliance as a civic responsibility.

 

He explained that the challenge goes beyond taxation, reflecting broader issues of civic engagement and participation in governance.

 

Ango also pointed to weak enforcement mechanisms and a culture of influence peddling as barriers to effective tax administration. According to him, some taxpayers attempt to use personal connections to avoid or reduce tax obligations once assessments are issued.

 

He said reforms are aimed at changing public perception of taxation, encouraging citizens to see the tax system as something to engage with rather than fear.

 

As part of efforts to improve fairness and transparency, Ango highlighted the proposed introduction of a tax ombudsman to serve as an independent channel between taxpayers and tax authorities.

 

The ombudsman, he said, would help taxpayers who may not have the resources to hire lawyers or consultants to challenge or clarify tax assessments.

 

“If a taxpayer receives an assessment and doesn’t understand it, they should be able to walk into the ombudsman’s office and receive assistance,” he said.

 

For Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee (NTPIC), Nigeria’s tax compliance challenge is deeply rooted in a broken social contract between government and citizens.

 

According to him, years of weak accountability and limited public trust have made many Nigerians reluctant to contribute through taxes.

 

“The problem is that the social contract has been broken for so many years. It didn’t just happen today, so it will take time to rebuild trust with the people,” Tegbe said.

 

He emphasised the need for stronger civic engagement, particularly at the local government level, where citizens can more easily hold public officials accountable.

 

Tegbe also called for electoral reforms and greater citizen participation in governance, noting that Nigerians must demand accountability for how public funds are managed.

 

He added that rebuilding trust between citizens and government is essential for the success of the country’s tax reforms and broader fiscal policy agenda.

 

“When somebody is doing something right, let’s acknowledge that we are going in the right direction.

 

We are not there yet. Are we making progress? We are making progress. Are we seeing the dividend? Maybe we are not seeing it yet. But we will see it,” he said