New Tax Law: Will It Turn Nigerians into Tax Slaves?
Nigeria’s Dependence on France and the Neglect of Local Tech Experts
In late 2025, the Federal Inland Revenue Service (FIRS) signed a Memorandum of Understanding (MoU) with France’s tax authority, the Direction Générale des Finances Publiques (DGFiP), as part of broader tax reform efforts ahead of the Nigeria Revenue Service (NRS) transition in 2026. (Nigeria Startup News)
This agreement — framed by government officials as a cooperation for digital transformation, capacity building, and institutional strengthening — has sparked intense debate across Nigeria’s civic, political, and business spheres. (THISDAYLIVE)
Controversy: Sovereignty vs. Support
Critics argue the deal threatens Nigeria’s economic sovereignty, claiming that foreign involvement in tax administration could give external entities influence over Nigeria’s financial data infrastructure. Parties such as the Peoples Redemption Party (PRP) and the African Democratic Congress (ADC) argue that full disclosure of the MoU terms is needed, warning that Nigeria might be ceding control of sensitive economic systems and data. (Punch Newspapers)
Opposition voices also view the partnership as evidence of excessive reliance on foreign expertise, instead of nurturing local tech talent capable of building home-grown tax technologies. Some critics fear that Nigeria is outsourcing not only technology but also key aspects of fiscal governance, which they describe metaphorically as turning Nigerians into “tax slaves” to foreign systems.” (Sahara Reporters)
In some public narratives and social commentary, there are even more dramatic depictions — claiming the deal gives France power over Nigeria’s tax infrastructure — though government clarifications insist the agreement is technical and advisory only and does not permit France to collect taxes or control Nigerian data systems. (CutOffMark.NG)
Why This Matters to Nigerian Citizens
For everyday Nigerians, the implications of new tax laws and foreign agreements can be profound:
1. Increased Burden on the Average Citizen
Nigeria’s tax reform is part of broader efforts to increase government revenues amid dwindling oil receipts. However, most Nigerians already feel overburdened by consumption taxes — such as Value-Added Tax (VAT) — which disproportionately affect low- and middle-income households. (The Nation Newspaper)
If tax administration becomes more aggressive without corresponding transparency and accountability, many fear compliance will feel less like patriotic duty and more like coercion.
2. Public Trust and Transparency Issues
The controversy around the tax deal highlights deep distrust between citizens and the government. Lack of clear communication about the terms of foreign agreements fuels suspicion, particularly when local voices — including civil society groups and professional associations — demand full disclosure of policy decisions that impact national governance. (Daily Trust)
3. Local Tech Exclusion
Nigeria is home to innovative tech companies and experts — from fintech leaders to digital solutions developers — who could potentially build tax solutions suited to local realities. Critics argue that heavy reliance on foreign models risks sidelining local innovators, who understand Nigeria’s unique economic and social terrain better than external partners.
Economic Implications for the Nation
The economic impact of the tax reform and its associated foreign cooperation extends beyond public sentiment:
1. Strengthened Tax Administration or Overreach?
Proponents argue modernising tax systems with international partners will make Nigeria’s revenue collection more efficient, reduce leakages, and align the country with global best practices. (The Nation Newspaper)
However, the notion of a foreign partner’s input in domestic tax architecture — if perceived as over-influence — could deter investment or erode confidence in local governance.
2. Data Security and Competitiveness
Data protection and economic sovereignty are central to economic competitiveness. Any real or perceived risk that critical financial information could be accessed or influenced externally may weaken Nigeria’s bargaining power in foreign direct investment and global tax negotiations.
3. Missed Opportunity for Developing Local Capacity
Rather than building and empowering domestic digital tax infrastructure — creating jobs and strategic assets — outsourcing certain elements to foreign expertise slows Nigeria’s capacity building. This has implications for long-term economic independence and technological leadership in Africa.
Way Forward: What Nigeria Should Do Instead
To avoid turning tax reform into what many citizens now describe as “tax slavery”, Nigeria must urgently rethink both its approach and priorities.
1. Prioritise Nigerian Tech Experts and Local Solutions
Nigeria has one of the largest tech ecosystems in Africa, with skilled software engineers, fintech innovators, data scientists, and digital payment experts who already power banks, fintech platforms, and government systems.
Instead of depending on foreign governments:
The Federal Government should commission Nigerian tech firms to build tax platforms.
Universities, startups, and innovation hubs should be funded to co-create home-grown tax technology.
This would create jobs, retain intellectual property, and build long-term institutional capacity.
Outsourcing critical national systems sends a dangerous message: that Nigeria does not trust its own people.
2. Protect National Sovereignty and Data
Tax data is national security data. It reflects income levels, business operations, consumption patterns, and economic behavior.
Nigeria must:
Ensure all tax systems are hosted locally
Guarantee that no foreign government or institution has backend access to taxpayer data
Make all international agreements publicly available for scrutiny
Transparency is not optional; it is essential for trust.
3. Balance Revenue Generation with Social Reality
Tax reform must consider the harsh realities Nigerians face:
High unemployment
Rising inflation
Weak social services
Poor infrastructure
Taxing citizens aggressively without:
Reliable electricity
Quality roads
Affordable healthcare
Functional education
will only deepen poverty and resentment. Taxation without visible benefits feels like punishment, not governance.
4. Engage Citizens, Not Silence Them
Policies that affect millions of Nigerians must not be decided behind closed doors.
Government should:
Consult labour unions, MSMEs, tech associations, and civil society
Hold public hearings on major tax reforms
Communicate reforms clearly in simple language
When citizens understand why they are taxed and how the money is used, compliance increases naturally.
Final Thought: Tax Reform Should Free, Not Enslave
Nigeria needs tax reform — no doubt. But reform without trust, inclusion, and independence is dangerous.
A nation that cannot manage its own tax system risks:
Economic dependency
Loss of sovereignty
Weak institutions
Citizen alienation
True progress lies in building Nigerian solutions, empowering Nigerian experts, and designing tax systems that grow the economy — not crush the people.
If Nigeria must partner internationally, it should be on equal terms, with clear limits, strong oversight, and a firm commitment to local ownership and leadership.
Anything less risks turning a necessary reform into a symbol of national failure.
Conclusion: A Crossroads for Nigeria
Nigeria stands at a pivotal moment: reforming its tax laws is vital for fiscal sustainability, but how those laws are implemented matters deeply. An agreement with France — even if technically focused on advisory support — has ignited debate about national confidence, sovereignty, and economic independence. (thecable.ng)
Whether this partnership becomes a model for effective modernization or a symbol of misplaced reliance will depend on transparency, accountability, and the meaningful inclusion of Nigerian tech expertise in shaping the country’s fiscal future
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