By: Business Desk
Former Speaker of the House Yakubu Dogara has described the Nigeria Tax Act, 2025 as a structural shift toward a modern, internationally aligned system.
Tax Reform as a Pact
Presenting a lecture in Abuja on Tuesday, Dogara argued that tax reform must be seen not as punishment but as a pact between citizens and the state. He said compliance depends on trust and transparency, adding that “the best way to teach people to pay taxes is to let them see what they get for it.”
He stressed that Nigerians must accept the reform as more than policy, but as a national conversation about building a fairer economy.
Debris of the Past
Dogara recalled how emergency monetary policies, such as printing ₦22.7 trillion in “ways and means,” had destroyed the naira’s value. He cited dual exchange rates, forex arbitrage, and “voodoo economics” that enriched a few while weakening the economy.
He said Tinubu’s reforms, from day one, were urgent steps to prevent collapse, adding: “If everything seems under control, you are not going fast enough; you are probably not a reformer.”
Reform Resistance
Dogara admitted reforms face fierce opposition from vested interests benefiting from the old system. He warned of negative solidarity that drags everyone down when change is resisted. He argued that opposition is not about collective benefit but driven by “something sinister.”
He noted decades of a contradictory tax regime where too few carried the burden, enforcement was inconsistent, and informality was the norm.
Future of Nigeria’s Tax Pact
Dogara said the Presidential Committee on Fiscal Policy & Tax Reform, chaired by Prof. Taiwo Oyedele, has laid out revolutionary proposals to restructure institutions for equity and justice.
He added that success requires citizens’ trust, government accountability, and transparency in how taxes are used. The Act, he concluded, is “the covenant between a government’s promise and a people’s prosperity.”
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