TAXATION WITHOUT TRANSFORMATION: PUBLIC PERCEPTION AND THE CRISIS OF CONFIDENCE IN NIGERIA'S NEW TAX LAWS

Abstract

This paper critically examined the public perception and emerging crisis of confidence surrounding Nigeria's tax reforms enacted through four Acts signed by His Excellency, President Bola Ahmed Tinubu, on the 26th June, 2025, with major provisions effective from the 1st January 2026. The Nigeria Tax Act (NTA) 2025, the Nigeria Tax Administration Act (NTAA) 2025, the Nigeria Revenue Service (Establishment) Act (NRSA) 2025, and the Joint Revenue Board (Establishment) Act (JRBA) 2025 aimed to consolidate fragmented statutes, introduced progressive revenue structures, broadened the tax base, and enhanced compliance. This paper also interrogated the concept of ‘Taxation without Transformation’ as both a legal and governance problem, examining whether Nigeria's evolving tax statutes and enforcement practices aligned with constitutional principles, administrative law norms, and judicial interpretations of fiscal power. Drawing on statutory provisions, case law, and comparative insights, this paper argued that while Nigeria possesses expansive legal authority to tax, the persistent failure to link taxation to visible socio-economic transformation undermined the normative foundations of tax compliance and threatened the long-term sustainability of fiscal reform. It concluded that the long-term success of Nigeria’s tax reforms would depend not merely on legislative innovation or enforcement mechanisms but on the State’s ability to rebuild public trust through transparent governance, institutional accountability, effective public service delivery, and sustained public engagement. It recommended governance-centered approaches to tax administration that prioritised taxpayer education, revenue transparency, and measurable developmental impacts as essential prerequisites for achieving sustainable tax compliance and strengthening fiscal legitimacy in Nigeria.