14/02/2025
ECONOMIC HARDSHIP AND PRESIDENT TINUBU'S TAX REFORMS/POLICIES IN NIGERIA
By T. M. Jega
President Bola Ahmed Tinubu’s administration has introduced various economic policies and tax reforms aimed at stabilizing Nigeria’s economy. However, these measures have led to widespread economic hardship for many citizens. The removal of fuel subsidies and the unification of exchange rates were intended to boost economic growth, but they have instead resulted in skyrocketing inflation, increased transportation costs, and a general rise in the cost of living. The burden of these policies has largely fallen on the poor and middle class, creating economic distress across the country.
The tax reforms introduced by the Tinubu administration, including new levies on businesses and individuals, have further strained an already struggling population. While taxation is essential for government revenue, the timing and implementation of these reforms have worsened the financial struggles of small businesses and low-income earners. The introduction of multiple taxes without significant improvement in public services has led to frustration among Nigerians, as they see little benefit from their contributions. Rather than focusing on expanding the tax base, the government appears to be overburdening existing taxpayers without addressing issues of corruption and mismanagement.
Additionally, the government’s failure to provide adequate palliatives to cushion the effects of these reforms has deepened public dissatisfaction. The rising cost of essential goods, lack of stable electricity, and increasing unemployment have made life more difficult for ordinary Nigerians. The promise of economic stability and long-term benefits remains uncertain, as many struggle to meet their daily needs. Without a clear plan to ease these economic pressures, the government risks alienating the very people it seeks to uplift through these reforms.
To address these challenges, the administration must adopt a more balanced approach by prioritizing policies that provide immediate relief to citizens. Tax reforms should focus on closing loopholes that allow the wealthy and corporations to evade payments rather than disproportionately targeting the struggling majority. Furthermore, the government must ensure that tax revenues are transparently utilized to improve infrastructure, education, and healthcare. Without these adjustments, the current economic hardship may lead to greater public unrest and a lack of trust in leadership.
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