by George Ozalla
Stakeholders in Nigeria’s tax and governance space say recent legal reforms in the country’s tax framework have opened a new phase of cooperation among revenue agencies, with implications for tax justice, public accountability, and efforts to bring the informal sector into the tax net.
This view emerged at a two-day capacity building workshop on budget analysis and tracking for tax justice, alongside the validation of research findings on informal sector taxation in the Federal Capital Territory, held in Abuja last week. The workshop brought together tax professionals, civil society actors, media practitioners, and governance advocates to explore how fiscal reforms, citizen engagement, and institutional collaboration can strengthen Nigeria’s revenue system.
The Chairman of the Abuja and District Society of the Chartered Institute of Taxation of Nigeria (CITN), Dr Enamudu F. Benjamin, FCTI, addressed public perceptions of rivalry between the Federal Inland Revenue Service (FIRS) and the Federal Capital Territory Internal Revenue Service (FCT IRS). He noted that such assumptions overlook the legal and operational distinctions between the agencies and stressed that their mandates are clearly defined in law.
Enamudu explained that while coordination had not always been seamless, the new tax law, effective January 1, 2026, introduces provisions encouraging structured collaboration, including joint tax audits. He said the reform applies nationwide, creating a uniform framework to improve efficiency, reduce duplication, and strengthen revenue mobilisation.
Linking tax justice to the broader socio-economic context, Enamudu highlighted Nigeria’s narrow tax base and uneven compliance. “Many citizens remain outside the tax net, while some within it contribute disproportionately, creating distortions that undermine fairness and sustainability”. He expressed confidence that ongoing reforms, if properly implemented, would expand coverage and promote equity.
He further connected tax compliance to public trust, arguing that citizens are more likely to meet obligations when they see revenues translated into public goods and services. Reducing wastage, improving transparency, and demonstrating prudent use of public funds are essential to building confidence in the system and reinforcing voluntary compliance, he reaffirmed.
The governance and accountability dimension was reinforced by Tunde Salman of the Good Governance Team Nigeria, who highlighted the role of budget literacy in strengthening fiscal oversight. He said meaningful participation in public finance requires understanding the entire budget cycle, from formulation and legislative review to implementation and monitoring. Without this knowledge, attempts to track tax revenues and demand accountability would remain limited.
Salman emphasised the critical role of media and civil society organisations in translating complex fiscal information into accessible narratives, bridging gaps between government institutions and taxpayers, and strengthening democratic accountability.
A technical highlight of the workshop was the validation of research findings on informal sector taxation in the Federal Capital Territory. Presenters highlighted persistent challenges in integrating informal sector operators into the formal system, including cumbersome procedures, weak engagement strategies, and limited awareness of tax obligations and benefits. Participants noted that the informal sector is a significant part of the urban economy, making its inclusion essential to broadening the tax base.
Speakers stressed the need for simplified, inclusive approaches that encourage compliance without overburdening small-scale businesses and self-employed persons. Coercive methods often deepen resistance, while transparent engagement, clear communication, and proportionate tax demands are more likely to yield sustainable results.
The workshop was organised by the FCT Tax Justice and Governance Platform in collaboration with the Social Development Integrated Centre (Social Action) and the Civil Society Legislative Advocacy Centre (CISLAC), with support from Christian Aid Nigeria. Participants came from civil society organisations, media, government institutions, and other stakeholders involved in taxation, budgeting, and public finance oversight.
Sessions focused on practical training in budget analysis, expenditure tracking, and tax justice advocacy. Facilitators guided participants on following the flow of tax revenues from collection to utilisation, identifying implementation gaps, and engaging public institutions through evidence-based advocacy. Organisers said the programme aimed to strengthen citizen oversight of public finances and promote fair, accountable taxation, particularly at the subnational level where service delivery pressures are most visible.
The workshop closed with participants taking a group photograph and networking, exchanging ideas, building professional connections, and planning follow-up actions to deepen tax justice advocacy in the Federal Capital Territory and across Nigeria. Stakeholders said sustained engagement, supported by legal reforms and informed citizen participation, will be critical to turning policy intentions into real improvements in revenue governance and public trust.
