by Nedu Okorie
A public affairs analyst and lecturer at the Kwara State University, Dr. Suleiman Hafeez while making submissions on the current inflation rate which stands at 32.70% in September, as well as the plan of the Federal Government to commence a 25% tax collection from Nigerians earning above ₦100million, has said that the wealthy elites in Nigeria evade tax payment.
He disclosed this on a political breakfast show on the Diamond 88.7 FM Ilorin on Thursday, 17th October, 2024. He stated that: “the richer you are, the more resources you gather to keep evading tax. In other countries the richer you are the more tax you pay.” According to him, taxes with various thresholds should be implemented in every level of salary structure.
He maintained that the removal of subsidy is the basis of Nigeria’s current economic situation. “When the subsidy was removed, the revenue moving to the state tripled. The government is looking for ways to rake in money through various forms of taxes at the expense of the populace”.
He further stressed the need to increase the tax regime and mechanisms on the informal sector, which include businessmen, marketers, as most taxes collected from the informal sector, are not effectively remitted to the appropriate quarters. “80% of the people paying tax are from the formal sector, that is, the civil and public servants, which is not supposed to be. The informal sector taxation system needs to be critically looked into to ensure transparency and accountability”.
He highlighted that the lack of proper and detailed data to hampers the tax management system. “An average person in Nigeria knows that the prices of goods are unpredictable, the cost of living is becoming worrisome and every basic need keeps rising, however we lack proper data in this country to have a proper tax payment system.
While commenting on the allegations made by Adedeji Adeleke, father of popular music star, Davido,who said that a government official tried to prevent him from securing the environmental permit for his power plant worth over $2 billion, Dr. Hafeez justified that not all Nigerians are corrupt.
He said “not all Nigerians are corrupt but the honest ones have refused to speak up, saying that the silence is the challenge. People do not understand the consequences of their actions, when a project is raised for our benefits, we should be up and doing to make it come to realization”.
He emphasized the need for change in citizen’s orientation, adding that it should start from the basic schools. “The people perpetuating evil are not the problem but those not voicing out. When they all speak up, there will be no case of victimisation and we will be able to get rid of the corruption affecting Nigeria.” Said Dr. Hafeez.
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