At the heart of Nigeria’s societal resilience lies a profound, yet fragile truth. The Nigerian nation functions not because of a robust, state-provided social security system, but in spite of its absence. In the vacuum left by formal institutions, an intricate web of informal support has emerged as the true safety net. When illness strikes, unemployment looms, or a child’s school fees are due, the first and often only recourse for millions is not the government, but family, community, and benevolent individuals.
This system is a testament to the Nigerian culture of solidarity. Those with financial means, from the successful professional , businessmen to the market trader who has had a good month income across Nigeria routinely stretch their resources to cover the medical bills of a distant relative, provide temporary housing for a job-seeking cousin, or send sustenance to a village elder. It is a decentralized, organic welfare apparatus that has, traditionally, provided a critical buffer against despair and maintained a fragile social stability.
However, this informal net may become strained under the prospect of and as an outcome of the new tax burden.
The fundamental bargain between a state and its citizens is that in exchange for contributions like taxes, the state provides security, infrastructure, and a baseline of welfare. In Nigeria, this contract is dangerously one-sided. The government’s move to increase taxation, through VAT hikes, new levies, or expanded collection, feels less like an investment in public goods and more like an extraction from a populace already bearing the burden of the state’s shortcomings.
The logic of this resentment is clear and compelling: why should citizens contribute more when they see so little return in the form of tangible safety nets? Instead, a disproportionate share of public revenue is routinely directed toward “luxury infrastructure” prestigious projects but often fail to address the populace’s most urgent human needs. Worse still, a significant portion is lost to the opulent lifestyles of public officials, whose convoys, estates, and offshore accounts stand as grotesque monuments to misplaced priorities. The citizen is asked to tighten their belt while witnessing a parade of profligacy.
Therefore, the core argument is not against taxation in principle, but against taxation without guarantee of accountability and reinvestment in the social contract. Increasing the fiscal burden without simultaneously and transparently building the pillars of a modern social security system, such as universal healthcare coverage, unemployment insurance, broadening the conditional cash transfers for the poorest, and providing a robust public pension scheme. This is a recipe for social distruption which my propel volatility . It only extracts resources from the very informal networks that keep society afloat, while offering nothing in replacement.
The conclusion is inevitable: continuing on this path risks severing the last threads of patience. When the informal net finally snaps under compounded pressure, the fall will be collective. Social unrest is not a mere possibility; it is the logical endpoint of a populace that feels both exploited and abandoned. For Nigeria to achieve true and sustainable stability, the government must first demonstrate through accountable governance and citizen-centric welfare programs, that it is a partner in progress, not just a collector of tribute. The new tax bill has to carefully implemented; the people are waiting to see what they have bought or forcefully compelled upon them.
Baba Isimi FNIA PhD
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