TAX SUFFRAGE FOR ASPIRANTS TO POLITICAL OFFICES IN NIGERIA

 TAX SUFFRAGE FOR ASPIRANTS TO POLITICAL OFFICES IN NIGERIA.

It is no longer news that on January 1, 2026, a new Tax law regime will come into full force, namely, the Nigeria Tax Act [NTA], 2025; the Nigerian Tax Administration Act, 2025; the Joint Revenue Board of Nigeria [Establishment] Act, 2025, and the Nigeria Revenue Service [Establishment] Act, 2025. These laudable pieces of legislation, intended to transform Nigeria and improve the lives of Nigerians, would be beneficial if implemented boldly.

The Nigerian Tax Act [NTA], 2025, repealed certain Tax Acts in the country, namely, the Capital Gains Act, the Casino Act, the Companies Income Tax Act, the Deep Off-Shore and Inland Basin Production Sharing Contracts Act, the Industrial Development [Income Tax Relief][ Act, Income Tax [Authorized Communications] Act, Value Added Tax Act, and the Venture Capital [Incentive] Act, amended the Nigeria Export Processing Zones Act; the Oil and Gas Free Trade Zone Act, the National Information Technology Development Agency Act, Petroleum Industry Act, the National Agency for Science and Engineering Infrastructure Act, the Customs, Excise Tariffs, etc. [Consolidation] Act, the National Lottery Act, the Nigerian Mineral and Mining Act, the Nigerian Start-Up Act, the Export [incentives and Miscellaneous provisions] Act, the Cybercrime [Prohibition, prevention, etc] Act, revoked the Value Added Tax Act [Modification] Order 2021, amended the Companies Income Tax [Significant Economic Presence ] Order, 2020 and the Petroleum [Drilling and Production] Regulations 1969, Consolidated the Legal frameworks relating to taxation and enact the Nigerian Tax Act provides for Taxation of income, transactions and Instruments, and related matters.

The NTA 2025 legislation is positively ambitious in streamlining Tax laws in Nigeria. In its caption, it clearly states, “... to consolidate the legal frameworks relating to Taxation ... provide for Taxation of income, transactions, and instruments ...”. To accomplish this, 9 [Nine] Acts of the National Assembly were outrightly repealed, 12 [Twelve] Acts of the National Assembly were amended, 1 [One] Executive Order was revoked, whereas 1 [One] Order and 1 [One] Regulation were amended. The catalogue of Acts, orders, and Regulations affected, in truth, was very cumbersome and confusing to the citizenry, because it was an untidy duplication of resources. It is hoped that this 203-section and 14 Schedules, NTA 2025, and the related legislation will enjoy consecrated funding to enable full implementation.

THE TAX LAW WITHOUT A HIDDEN AGENDA

Transactions yielding income, dividends, royalties, and Interest rates are clearly defined in the NTA 2025 law with clarity. This satisfied a basic requirement of any legislation, which is to simplify compliance. One such item is the Tax band arithmetic, with clarity, every taxable citizen knows where he or she belongs, and becomes vigilant in gauging the ullage, so to say, of the accruable Revenue to the Government, pursuant to S. 58(1) of the NTA 2025 particularly explained in the Fourth Schedule to the Act after eligible deduction provided for in Section 30[1] and [2] which includes 20% relief of annual rent paid, subject to a maximum of N500,000, all taxable citizens fall in one of these bands:

First N800,000 is 0% Tax rate P/A

Next N2,200,000 is 15% Tax rate P/A

Next N9,000,000 is 18% Tax rate P/A

Next N13, 000,000 is 21% Tax rate P/A

Next N25,000,000 is 23% Tax rate P/A

Next N50,000,000 is 25% Tax rate P/A

I respectfully admit that making this a reality is Herculean. However, the deployment of technology will help the revenue agency’s drag net to catch Whales and Sharks in the ocean called Nigeria. Furthermore, the Central Bank of Nigeria's incremental enforcement of the cashless policy will support implementation.

IMPLEMENTATION CHALLENGES

First, Chapter II of the 1999 Constitution of the Federal Republic of Nigeria [as amended], which deals with the ‘Fundamental Objectives and Directive principles of State Policy’, particularly Sections 14(2)(a), (b), (3);16(d), 16A,17, and 24(f). A critical analysis of these constitutional provisions shows dismal fulfillment of the fundamental objectives of the state by the Government. The glaring imbalance in fulfilling the listed objectives set out by the Constitution leaves citizens to gesticulate, the government's ability to implement these laws to the benefit of the generality of the people, with insecurity yet to abate, external debt, hunger, unemployment, and the monster corruption tormenting the nation's public service. There is a trust deficit, which deprives the state of the moral strength to enforce laws, and this weakens citizens' patriotic inclination to abide by Section 24(f) of the Constitution, which emphasizes the duties of citizens to pay tax when they barely live a normal life.

Secondly, Section 251 of the 1999 Constitution of Nigeria [as amended] confers exclusive Jurisdiction on matters that Federal Government and its Ministries, Department and Agencies [MDA] Company Taxes, Customs and Excise duties, Exports duties, Banking, Banks, other financial institutions, which carry out transactions that are all incorporated in the NTA 2025, which is inconsistent with the establishment of Ombud in Section 36 and Tax Appeal Tribunals in Section 23 of the Joint Revenue Board of Nigeria 2025 respectively, with terms of appointment. At what stage will these quasi-judicial bodies be involved without conflict with the Judicial powers under the Legal System of Nigeria? Where will the appeal emanate? Further, Section 139 of the Nigeria Tax Administration Act, 2025 empowers the Tax body to prosecute offenders, subject to the Powers of the Attorney General of the Federation or State. Will the Offices of the Attorney General, at the Federal and State levels, create Tax prosecution departments in the Ministry, or the Tax office will prosecute directly? Tax law and enforcement are now sophisticated, requiring forensic and high-skilled big data analytics and expertise. It is my considered view that the existing Federal High Courts should be expanded, and some designated as Tax courts since they have Judicial Divisions across the country, and the judges should be provided with updated specialized training and technical know-how.

TAX SUFFRAGE FOR POLITICAL OFFICE ASPIRANTS

Public office holders in Nigeria will enjoy public trust when the people can see how they perform the responsibilities of their previous lives. Introduction of Tax suffrage for those seeking to occupy public office and those who execute public projects will help us look at the patriotic lives of those who seek to lead others. The present 3-year Tax clearance is not sufficient. When we consider the fact that those who seek employment in shopping malls, to work as security Guards, Doctors, Lawyers, Engineers, etc., are required to possess years of related experience. Politicians who make laws and execute them should have higher experience; they should possess more experience and a patriotic character that is above intellect. The people of Nigeria are tired of the oscillations of public office holders in implementing Sections 13-24 of the 1999 Constitution of Nigeria, ‘the fundamental objectives and Directive Principles of state policy’. It is therefore necessary that, in the implementation of the new Tax laws, to bridge the trust deficit, they should be enforced using preventive measures, particularly when it comes to persons who are politically exposed and their agents, particularly in the banks. Considering the network of those who seek to evade Tax, inter-agency collaboration is key, backed by law, and this will involve the Joint Revenue Board of Nigeria [JRBN], Code of Conduct Bureau [CCB], Independent Corrupt Practices Commission [ICPC], Economic and Financial Crime Commission [EFCC], Independent National Electoral Commission [INEC] [including the States Independent Electoral Commissions [SIEC]]. In the instant of Election to public office, the INEC should review the Electoral Guidelines, and the National Assembly should amend the Electoral Act to include, among others, the following requirements:

1.     Aspirants to the office of President and Vice President, 25 years of verifiable Tax review and Clearance.

2.    Aspirants to the office of Governor, Deputy Governor, and National Assembly, 20 years of verifiable Tax Review and Clearance.

3.    Aspirants to State Houses of Assembly and Local Government Chairman, 15 years of verifiable Tax review and clearance.

4.    Aspirants to the office of Councillors, 10 years of verifiable Tax Review and Clearance.

In line with the above suggestion, agencies of the Federal and State governments can replicate the above requirements regarding the Assets of aspirants to public office. The benefit of due process will enhance not only transparency but also honesty and integrity, and patriotism.

The facilitator of this endeavour is the Central Bank of Nigeria [CBN] and its Regulation of the Banks operating in Nigeria, by encouraging all financial transactions to pass through the Banks.

Implementation of these Regulations will combine experience and ability side by side, and the public will receive purposeful service from those elected to lead.