An Economist, Daramola Omoyele, has suggested the federal government to incorporate non secular establishments within the new tax internet in Nigeria, whereas emphasising the necessity to sort out corruption in tax administration.
On Wednesday, in an interview with the Information Company of Nigeria (NAN), Omoyele stated that the brand new tax reform, although well-intentioned, would fail if it exempts probably the most highly effective whereas burdening the powerless.
He acknowledged that the brand new Nigeria Tax Administration Act (2025) launched a unified tax identification system, stricter compliance measures, and new levies supposed to develop the tax base.
“The federal government additionally raised the non-public tax exemption threshold to ₦800,000 yearly, a transfer meant to guard the poorest Nigerians.
“But in follow, many will nonetheless face a number of native levies, consumption taxes, and different oblique costs that drive up the price of dwelling,’’ he stated.
Omoyele additionally acknowledged that the essential however usually ignored side of the reform was the exclusion of non secular establishments from the tax internet.
He stated that in immediately’s Nigeria, “it’s virtually unattainable to separate many pastors or imams from their ministries.”
He stated that the non secular leaders had been usually wealthier than the establishments they led, proudly owning fleets of luxurious vehicles, non-public jets, and mansions whereas their congregations struggled to outlive.
Omoyele stated whereas a few of the non secular leaders had been additionally corrupt, some equally manipulate their followers utilizing religion as a protect to counterpoint themselves with out scrutiny or accountability.
“Many Nigerians are way more prepared to pay tithes, choices, or “seed sowing” than to pay taxes.
“By these non secular funds, some leaders have constructed huge private empires, whereas abnormal residents bear the price of public providers. This isn’t merely a non secular problem, it’s an financial one,” he stated.
Omoyele stated that tax exemption for non secular leaders undermined public belief, as residents see rich non secular figures escape obligations that struggling merchants should meet.
He added that it additionally considerably weakens authorities income, as huge sums movement untaxed by means of establishments that function as monetary powerhouses.
The economist argued there have been sturdy ethical and civic arguments for taxing non secular leaders and establishments.
He stated that it might maintain leaders accountable for lavish life and large untaxed revenue, uphold civic duty, shield the poor, and restore public belief.
“Many spiritual organisations acquire thousands and thousands of naira each day in choices and donations that go unrecorded and untaxed, although they usually exceed the turnover of many small companies.
“When non secular leaders dwell far above the financial actuality of their followers, flying non-public jets and buying estates, equity calls for that they contribute again to the nation that sustains them.
“Preaching justice and equity should go hand in hand with civic duty. Paying tax just isn’t a sin; it’s an act of service to society,’’ he stated.
Omoyele added {that a} truthful tax system that features all revenue sources would cut back the monetary exploitation of followers, a lot of whom had been pressured to offer past their means.
The economists, nevertheless, suggested the federal government to deal with corruption within the tax administration within the nation.
He stated:”till corruption is tackled and all revenue together with non secular wealth is pretty taxed, Nigerians will proceed to view taxation as oppression, not obligation.”
He famous that the main impediment to efficient taxation in Nigeria was not merely poverty, however corruption.
Omoyele stated that many voters had been merely not satisfied that the cash they pay in taxes would ever be used for the general public good.
“When tax income is mismanaged, stolen, or spent with out transparency, individuals lose confidence within the system.
“It turns into tough to persuade market girls and civil servants to pay taxes after they see public officers dwelling extravagantly, roads collapsing, hospitals in ruins, and primary providers failing,’’ he stated.
Omoyele stated that because of the mistrust, many voters usually requested, “why ought to I pay when nothing modifications?”
He stated that so long as corruption stays unchecked, compliance within the tax system would stay low, whatever the legislation.
Omoyele maintained that Nigeria’s tax system should be rooted in fairness, transparency, and accountability.
“Spiritual establishments shouldn’t be handled as sacred exceptions to civic responsibility.
“If large firms like Dangote Cement or Seplat are required to pay taxes, then church buildings, mosques, and conventional temples that accumulate large wealth shouldn’t be exempt.
“Nevertheless, equity additionally calls for that the poor be protected. Over-taxing low-income residents with out addressing corruption or closing elite loopholes will solely worsen inequality,’’ he stated.
He added that coupling enforcement with integrity, and exhibiting Nigerians the place their cash goes, is crucial, or the reform would stay “one other stunning coverage on paper whereas poverty deepens on the streets.
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