Obasanjo: Citizens Must Pay Tax, But Responsible Govt Should Spend Revenue Judiciously

Former President Olusegun Obasanjo yesterday asserted that every responsible citizen of Nigeria must pay tax, which he described as a major source of revenue to fund and drive the nation’s economy.

Obasanjo, however, added that if the people are faithful in their payment of tax, then a responsible government should spend the accrued tax revenue judiciously.

The former president was the chairman at the launch and public presentation of a book titled ‘A Review of Effective Tax Regime in Nigeria’, which was written by former Assistant Inspector General of Police, Tunde Ogunsakin.

Ogunsakin was a member of the Presidential Task Force on Education Tax Funds (1999 - 2000), also known as the Federal Government Panel on Education Tax, which was constituted by Obasanjo.

Speaking at the book launch which took place yesterday at the Nigerian Institute of International Affairs (NIIA) Victoria Island, Lagos, Obasanjo agreed with Ogunsakin’s writings which described tax evasion as a crime.

He also stressed that one of the major challenges of Nigeria was because he nation has not been able to actually determine the amount of tax revenue it loses annually.

According to Obasanjo, “This book is very readable. In a way, it is technical but more of a layman than technical. If one writes a book on taxation and I am able to understand, then anybody can understand it.

“According to the author, tax avoidance is legal but tax evasion is both criminal and civil. The African Union reported that it loses $50 billion per year from tax revenue. In Nigeria, we have not been able to determine how much we lose from tax revenue annually,” he said.

Meanwhile, the author, Ogunsakin, in his address said the event marks a significant milestone in Nigeria’s efforts to ensure a flourishing tax regime that would drive formidable economic growth and development in the country.

The former police chieftain said the “decision to publish the book was borne out of his desire to evolve a literature that will be of intellectual value to tax authorities in the area of tax collection and enlightenment campaign as well as encourage Nigerian populace and institutions to pay tax.

“I am very inspired by the book and the launch to call attention to a global debate on alternative to oil as the world leading nations are inventing cheaper alternatives to oil as producing nations are undergoing retrogressive variables which are receding purchase and sales of oil in their various categories world-wide.

“Before my brief on the intervention of tax as alternative to oil in contemporary revenue drive in developing nations, you will first wonder what a policeman desires in an analogous terrain like taxation. I did not study business administration nor accounting but political science, history and law,” he added.

Ogunsakin noted that he was opportune to have served as a member of the then Federal Government Panel on Education Tax set up by Obasanjo to investigate and recover all unpaid education tax by companies registered in Nigeria, stressing that this fired his enthusiasm to research more in taxation.

“It is heartwarming to state that as a sub-committee chairman on operation of the then Federal Government Panel on Education Tax, I travelled widely within the country and gathered immense experience in the course of the Panel’s work. This enormous experience greatly inspired me to publish this book,” he said.

Ogunsakin said as oil revenue continues to dwindle, Nigerian leaders must harness the taxation potential, maximising the advantage of the nation’s huge population and the reduction of tax evasion.

He noted that by 2025 or 2030, oil might become obsolete as a source of energy and revenue to nations, and added that only visionary nations would be able to cope or survive by then. He further stressed that this was a warning signal to Nigeria to explore taxation as an alternative to oil.

“Itis hopedthat drawinggreat insights from the expositions in this book will invariably assist us in advancing the course of reducing tax malpractices in Nigeria through voluntary compliance with taxation,” he said.

The special guest of honour at the launch and public presentation of the book was Vice President Yemi Osinbajo SAN, an event attended by captains of industries, politicians, academics, notable gurus in administration, governance and banking sectors, including royal fathers from all the geo-political zones.