Ajadi Urges FG to Explain Benefits of New Tax Measures, Warns of Deepening Hardship

As Nigeria continues to implement its much-debated new tax regime, prominent economist and public policy expert Dr. Olu Ajadi has called on the Federal Government (FG) to clearly explain how the new tax measures will benefit ordinary Nigerians, warning that lack of clarity could deepen economic hardship rather than ease it.

Ajadi’s intervention comes amid nationwide confusion and concern over the implications of the 2026 tax reforms, which took effect at the start of the year. Many Nigerians have expressed uncertainty about how the changes will work in practice — especially in relation to income tax, business compliance, and day-to-day financial obligations.

Ajadi’s Main Points

At a recent public forum, Dr. Ajadi emphasised the need for transparent communication from government agencies about the rationale, expected benefits, and practical effects of the new tax measures.

According to him:

Tax reform can be a powerful tool for economic development only if citizens understand its purpose and benefits.

New tax obligations must be matched with clear explanations of how revenues will support public goods such as infrastructure, security, healthcare, and education.

Ignorance and misinformation could fuel resistance, resentment, and economic stress among ordinary Nigerians.

He warned that failure to communicate effectively risks deepening the hardship already felt by many families, especially as the country grapples with inflationary pressures and cost-of-living challenges.

Why This Matters

Nigeria’s new tax reforms — including altered filings, enforcement protocols, and compliance expectations — represent one of the most significant overhauls of the tax system in years. The government says the reforms are designed to:

Broaden the tax base

Boost federal revenue

Create a more modern, efficient tax administration

Reduce over-dependence on oil revenue

However, for many Nigerians, the reforms have arrived without sufficiently clear guidance on how they will benefit households, entrepreneurs, and small businesses.

Ajadi stressed that this communication gap might lead to:

Misunderstanding of new obligations

Unnecessary fears about financial penalties

Slow compliance that could hurt both taxpayers and the government

Public Reaction and Broader Concerns

Reactions to Ajadi’s appeal have been mixed:

Supporters of the call argue that the government must do more to explain:

How tax revenues will be spent

Why the reforms are necessary now

What protections are in place for vulnerable groups

Critics contend that calling for explanations without understanding the technical details of the laws could delay compliance and complicate administration.

Civil society organisations and consumer groups have urged the FG to embark on a nationwide awareness campaign, including town-hall engagements and media briefings to demystify the new tax landscape.

What Citizens Want to Know

Common questions raised by individuals and businesses include:

How much more tax will ordinary Nigerians pay?

Will small businesses be exempt or receive relief?

How will tax revenues be used to improve services?

Will there be penalties for late compliance?

What support systems are in place to help people adjust?

Ajadi insists these questions are legitimate and should be addressed before stress turns into widespread economic backlash.

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Conclusion: Transparency as a Pillar of Reform

Dr. Ajadi’s call for clear explanations from the Federal Government highlights a broader challenge at the heart of tax reform: trust and transparency.

Tax systems work best when citizens understand:

Why taxes are needed

How funds are spent

What benefits they can expect in return

As Nigeria implements its new tax regime, the ability of government to communicate and engage with the public could determine whether the reforms succeed — or deepen the hardship many are already feeling.

Source: Vanguard Nigeria — “Ajadi urges FG to explain benefits of new tax measures, warns of deepening hardship.”