TAXATION MUST NOT HINDER ECONOMIC DEVELOPMENT – ADEBAYO
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Prince Adewole Adebayo, the Social Democratic Party (SDP) presidential candidate in Nigeria’s 2023 general election, has criticised the taxation policies of President Bola Ahmed Tinubu’s administration, describing them as reflective of a dysfunctional government system.
Speaking at the 2024 annual dinner and awards of the Chartered Institute of Taxation of Nigeria (CITN) in Lagos, where he was a special guest of honour, Adebayo argued that taxation should prioritise economic growth and citizen welfare.
“It is a false narrative by the APC-controlled government that higher revenue through taxation means development. No. It does not,” he stated.
“Taxation is one of the major ways the government is funded. Tax is a government function. Unfortunately, the government had been dysfunctional over time. In a dysfunctional governmental system, the tax system will also be dysfunctional. They are not right in their tax policies and fiscal and monetary management. They are not right in many aspects of social delivery. Unfortunately, this is the best they know.
“Revenue is one of the functions of taxation. The taxpayer is like a blood donor. You don’t drain all the blood in his body. Otherwise, he will die. Moderate the management of taxation and imposition of levies so that there would be disposable income to use in developing the country. Higher revenue that will kill industries, kill initiatives, and further pauperise the people is not taxation. It is your responsibility to advise those who are responsible for taxation that higher revenue is not the only success story,” he explained.
Adebayo emphasised that taxation must be used to drive development, redistribute wealth, and support the training of future taxpayers by funding education and social services. “A good taxation system should encourage business growth, which automatically brings about employment and increases productivity, ultimately raising the level of taxation in the country,” he said.
“There are many ways you can help to build a better society. Taxation is not just about revenue. It can be used as a value for the country. You can give incentives to activities you want people to engage in. You can use taxation to distribute and redistribute wealth in society to make it more equitable. You can use it as a stimulus when there is an economic crisis. It can be used to discipline when we are misbehaving in any aspect of our lives. Taxation is used to control inflation and to manage public expenses. It can be used to better the lives of the citizens by providing infrastructure and basic social services.
“A society that has a good tax system will have hard-working citizens because the real wealth of a country is when people work hard enough and then spare some contribution to society. Taxation is the foundation of any economy, and Nigeria is not an exception. However, you cannot make an omelette without breaking the egg, but when you break the egg and people are not seeing the omelette, that’s when they begin to wonder where the egg is. That is the question to answer for the people who are responsible for the management of our resources.”
The Minister of Justice and Attorney General of the Federation, Prince Lateef Fagbemi, SAN, who was also a special guest of honour, highlighted the critical role of taxation in nation-building. “No society and government succeed without taxation. Any country that closes its eyes to taxation is doomed. Countries exist without oil or other natural resources except through taxation, and they fare well, even better than some countries with mineral resources. That was where we started, and that is where we will return,” he stated.
In his opening address, CITN President Mr Samuel Agbeluyi expressed gratitude for the government’s tax reforms and increasing focus on taxation. “It is a thing of joy that society, and particularly the government at all levels, is beginning to take taxation seriously,” he said, citing the ongoing tax reform bill with the National Assembly.
Adebayo’s comments underline the need for a taxation system that balances revenue generation with economic development. By fostering policies that support industries, create jobs, and improve the quality of life, Nigeria can unlock the true potential of its tax system for national prosperity.
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