• Friday, November 22, 2024
businessday logo

BusinessDay

Why Nigeria’s “Black Tax” is a symptom of a deeper social malaise

Why Nigeria’s “Black Tax” is a symptom of a deeper social malaise

Dear reader, happy New Year. I hope you had a restful holiday and crossover. Somehow, given what our country is going through, from the killings in the Middle Belt, to the rising tribalism, to the economy, things probably looked tough. Like many in my circle, I have seen a sharp rise in people asking me for help, and to be honest, I need help myself as well. Things are that tough. Here is hoping that the worst of 2024 will be better than the best of 2023.

What prompted me to write this is the difference in the manner in which some of the people who asked me for holiday help made their requests. They fell into two broad groups, some were quite polite, and others were quite abrasive. Or entitled. There was one particular chap who clearly felt that just by asking, I had to drop whatever else I had planned and wire him cash, and this is dedicated to him, and people like him.

In Nigeria, Black Tax reflects a distorted social contract, shifting responsibilities from institutions to individuals unsustainably.

In a recent interview, John Mikel Obi, the former captain of the Nigerian Super Eagles, discussed various aspects of his football career, including his time at Chelsea, a thwarted transfer to Manchester United, and his experiences playing for the Nigerian senior national team. Mikel’s discourse on the “black tax” phenomenon resonated deeply with a cross-section of the Nigerian middle class and has ignited a debate.

The term “black tax” originated in South Africa, denoting the financial support Black professionals and higher-income individuals provide to their parents, siblings and other family members. A deep-seated sense of responsibility towards familial obligations often drives this financial assistance. Mikel Obi, drawing from his personal experiences and those of fellow Nigerian footballers, vividly portrayed the considerable mental and financial strain imposed on those paying the ‘black tax.’

Mikel Obi outlined challenges tied to black tax, emphasising the struggle between personal ambitions and meeting financial demands marked by entitlement. He highlighted instances where unknown extended family members exploited familial ties for personal gain, even resorting to threats when denied. Mikel explained how some relatives assumed their lives were secure due to their association, designating him as the caretaker for their large families. His experience parallels that of French footballer Paul Pogba, whose family’s greed led to legal troubles.

Mikel Obi’s interview highlighted entitlement, where individuals expect special treatment without merit. Rooted in a lack of empathy and appreciation for others’ efforts, this concept often stems from an unwillingness to recognize the emotional toll of financial demands. Mikel emphasised the perpetuation of entitlement through reluctance to admit vulnerability, driven by a desire for superiority. Understanding underlying emotions like shame and vulnerability unveils insights into entitled behaviour, originating from a refusal to acknowledge the need for assistance.

Entitlement often manifests when individuals exploit victimhood and poverty, presuming these conditions qualify them for unwarranted privileges. This is common in societies associating poverty with virtue, exemplified by prevalent beggars on Nigerian streets earning substantial amounts daily.

Approaching the discourse on black tax with nuance is crucial, acknowledging negative aspects while recognizing instances where it aids individuals in accessing life-changing resources. Positive outcomes challenge its dismissal, involving not just financial exchange but also the transfer of intangible resources.

In Nigeria, Black Tax reflects a distorted social contract, shifting responsibilities from institutions to individuals unsustainably. Success often traces back more to kinsmen than formal governance, contributing to an authority imbalance within personal networks, deviating from fair social contract principles.

Rather than relying on well-structured institutions, Nigerians turn to personal networks for social welfare, fueling tribal politics and prioritising in-group needs over national good. A poorly executed transition from monarchies to modern nation-states has left Nigeria vulnerable to tribalism’s corrosive effects.

Europe’s economic evolution, transitioning from subsistence agriculture to industrialization, spared it from situations akin to the black tax stage. Responsive governance frameworks played a crucial role in establishing formal social welfare systems, facilitating long-term planning and addressing evolving challenges, contributing to overall economic growth.

In contrast, Nigeria’s evolution lacks industrialization, contributing little to employment and agriculture. Limited opportunities and high food inflation result in over 100 million Nigerians facing poverty. Main food sources come from small-scale operations, lacking efficiency and causing unemployment and rising food costs. Until a sustainable societal structure emerges, a ‘black tax’ is necessary for support.

Nwanze is lead partner at SBM Intelligence

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp