Lawyers Endorse Voluntary Tax Compliance
By Sherif Salau
Nigeria lawyers have formally backed efforts to strengthen voluntary tax compliance, describing it as a critical apparatus for creating reliable government revenue to fund infrastructure and essential public services.
The position was articulated during a panel discussion titled “Pay Now, Prosper Later” at the 66th Annual General Conference of the Nigerian Bar Association (NBA) in Port Harcourt. Tax rights protector and Chief Executive Dr. John Nwabueze, together with senior advocates including Ahmed Raji, SAN, underscored that sustained revenue growth depends less on coercive enforcement and more on rebuilding taxpayer confidence in the administration of the tax system.
Participants highlighted that taxation remains a primary source of funding for roads, education, healthcare and other public goods. They argued that when citizens can clearly link their contributions to tangible improvements in service delivery, voluntary compliance rises and the need for aggressive collection measures declines. The Office of the Tax ombud, operational since January, has received 22 complaints to date and resolved 14, positioning itself as an independent channel for early dispute resolution that can ease pressure on the courts while fostering greater transparency.
Voluntary compliance offers several structural advantages. It reduces the administrative and financial costs associated with widespread audits and litigation. It promotes a culture of civic responsibility by treating taxpayers as partners rather than adversaries. When trust is established, compliance rates improve, the tax base expands, and governments can mobilise resources more efficiently without repeatedly raising rates. In an environment where domestic revenue mobilisation is essential to reducing dependence on volatile oil receipts, this approach supports long-term fiscal stability.
The model is not without limitations. Its effectiveness rests on public perception of fairness and accountability. Where transparency is weak or the benefits of taxation are not visible, tax morale erodes and under-reporting persists. A large informal sector and historically low tax-to-GDP ratios illustrate the challenge: goodwill alone cannot close significant compliance gaps. Without credible enforcement against deliberate non-compliance, voluntary systems risk creating inequities in which honest taxpayers subsidise those who evade. Poorly designed incentives or temporary schemes may also fail to convert short-term participation into lasting behavioural change.
A balanced strategy remains essential. Clearer rules, accessible taxpayer services, independent oversight such as that provided by the Tax Ombud, demonstrable public expenditure, and proportionate enforcement against wilful defaulters must operate together. Only then can voluntary compliance deliver the steady revenue required for national development.
As fiscal reforms continue, the legal profession’s message is clear: durable funding for infrastructure and public services will depend on a tax system that citizens trust sufficiently to support of their own accord.
