‘New tax regime can encourage civic ownership if well implemented’

Tax

By Merit Ibe

A development and public finance professional, Oluwaseun Adetutu, has said if well implemented, the new tax regime can encourage a culture of civic ownership, where roads, schools, hospitals, security, and social protection are no longer abstract government projects but services funded by citizens themselves. During a media encounter, he insisted that Nigeria’s new tax law is more than a fiscal reform. He added that it represents a turning point in the relationship between citizens and the state.

Adetutu, who has written on fiscal transparency and Perceptive Fiscal Policy, stated that the reform draws more Nigerians directly into the financing of government, apart from expanding the tax base, strengthening compliance, and formalising revenue collection.

“This shift inevitably raises a fundamental question: what exactly is the government doing with citizens’ money? That question is where real development begins,” he said.

According to Adetutu, for decades, Nigeria’s dependence on oil revenue has weakened the accountability link between the government and citizens.

He continued: “Public finance functions largely independently of popular contribution. As taxation becomes a more central revenue source, this dynamic changes. Citizens who contribute directly to public revenue become more attentive to how that revenue is managed, allocated, and translated into public goods.”

To him, the true potential of the new tax regime lies in its implementation, particularly through digitalisation, noting that a fully digital tax system reduces human discretion, limits leakages, and creates verifiable audit trails.

“More importantly, it opens pathways for transparency. Digital tax platforms can enable citizens to track collections, understand budget allocations, and follow how revenue is spent.

“Transparency should not stop at tax payment. It must extend to expenditure. Citizens should be able to see how tax revenue connects to projects, programmes, and services in their communities. When transparency improves, accountability becomes unavoidable,” Adetutu stated.

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