Can Nigeria Meet the Needs of Taxpayers? A Critical Examination Amid Rising Hardship

 

By Oluchi Omai 

As Nigeria grapples with economic instability, the central question confronting policymakers and citizens alike is whether the state can truly meet the expectations of its taxpayers. With inflation surging, public services under strain, and governance challenges persisting, many Nigerians increasingly question the value they receive in return for taxation.

Recent developments, ranging from the rising cost of Premium Motor Spirit (PMS), deteriorating healthcare systems, reported police misconduct, and tragic institutional failures have intensified this national debate.

 

The Burden of Inflation and Fuel Costs

The removal of fuel subsidies and the resultant rise in PMS prices have significantly worsened the cost of living. The economic ripple effects are evident across transportation, food prices, and essential services.

Reports indicate that the surge in fuel costs has led to dangerous coping mechanisms among citizens. In several tragic instances, individuals have risked their lives scooping fuel from fallen tankers, incidents that have resulted in mass casualties. In one such case, over 100 people were killed in a tanker explosion in Niger State, with many victims attempting to collect spilled petrol. Similarly, fuel-related accidents have been linked to broader systemic issues such as poor infrastructure and rising economic desperation.

These realities underscore a troubling paradox: in Africa’s largest oil-producing nation, citizens struggle to afford fuel—a basic economic driver.

 

Taxation Without Tangible Returns?

Economic experts have raised concerns about Nigeria’s fiscal structure. A large portion of government expenditure is consumed by debt servicing and recurrent costs, leaving limited resources for infrastructure and social development.

Former presidential candidate Peter Obi criticised current tax policies, noting that

“celebrating increased government revenue at a time when citizens are becoming poorer contradicts… good governance”

.

This sentiment reflects a broader public concern: taxation appears to be increasing, yet the quality of public services continues to decline.

 

Healthcare System: A Struggling Lifeline

Nigeria’s healthcare sector remains one of the clearest indicators of systemic failure. Despite the existence of structured frameworks, access to quality healthcare remains limited due to:

• Poor infrastructure
• Inadequate funding
• Shortage of skilled personnel
• High cost of medicines

In 2024, inflation significantly increased the price of essential drugs, with some antibiotics rising more than tenfold. Additionally, more than 70% of primary healthcare centres reportedly lack basic equipment, leaving millions without reliable medical support.

These deficiencies become even more glaring during emergencies. Reports of accident victims not receiving prompt or adequate care have fuelled public outrage. The recent tragedy involving students from the University of Cross River State—who reportedly lost their lives following an accident, has further raised concerns about emergency response systems and institutional preparedness.

 

Police Brutality and Public Trust Deficit

Public confidence in Nigeria’s law enforcement agencies remains fragile. Reports of police brutality, extortion, and abuse continue to surface, with the judiciary itself acknowledging the burden of such cases. The Chief Justice of Nigeria reportedly noted that courts are increasingly overwhelmed with complaints related to police misconduct.

Human rights organisations and international observers have also highlighted persistent issues of extrajudicial actions and abuse by security forces.

Such developments raise fundamental questions about governance: can taxpayers justify their contributions when basic rights and protections are inconsistently upheld?

 

Power Outages and the Cost of Darkness

No assessment of whether Nigeria meets the expectations of its taxpayers is complete without addressing the persistent challenge of electricity supply. Despite decades of reforms and significant public investment, reliable power remains elusive for many households and businesses across the country.

Frequent outages, often lasting hours or even days, have forced citizens to rely heavily on alternative energy sources such as petrol and diesel generators. This dependence has become increasingly burdensome, especially in the wake of rising fuel prices. For many Nigerians, the cost of powering homes and small businesses has effectively doubled, compounding the already severe impact of inflation.

The situation presents a troubling contradiction: taxpayers not only fund the national grid through tariffs and taxes but must also independently shoulder the cost of electricity generation. This dual burden raises fundamental concerns about service delivery and accountability.

Industry analysts have consistently highlighted structural issues within the power sector, including inadequate generation capacity, weak transmission infrastructure, and liquidity challenges within distribution companies. While government authorities have pledged ongoing reforms, progress remains slow and uneven.

As one energy expert noted in a recent policy discussion, 

“Electricity is not a luxury; it is the backbone of economic survival. Without reliable power, productivity declines, costs rise, and citizens lose confidence in the system.”

For small and medium-sized enterprises, the backbone of Nigeria’s economy—the implications are particularly severe. Many businesses report that energy costs now account for a substantial portion of operating expenses, leading to reduced profits, layoffs, or outright closure.

In the broader context of taxation and governance, the power sector exemplifies a critical gap between public expectation and service delivery. Until stable and affordable electricity becomes a reality, the question of whether Nigeria meets the needs of its taxpayers will remain unresolved.

In essence, darkness has become an added tax, one paid not to the government, but to inefficiency.

Infrastructure and Institutional Weaknesses

 

Beyond healthcare and security, broader structural challenges persist:

• Poor road networks contributing to fatal accidents
• Limited emergency response capacity
• Underdeveloped transport systems
• Inefficient public service delivery

For instance, analysts have linked recurring tanker explosions and accidents to bad roads and lack of rail infrastructure. These infrastructural deficits not only endanger lives but also undermine economic productivity.

 

The Social Contract Under Strain

At its core, taxation is built on a social contract: citizens contribute financially, and the state provides essential services, security, and welfare. In Nigeria, this balance appears increasingly strained.

The combination of:

• Rising poverty
• High inflation
• Weak institutions
• Limited social protection

has led many to question whether the government is fulfilling its obligations.

 

A System in Need of Reform

Can Nigeria meet the needs of taxpayers? The evidence suggests that, at present, the system falls short of expectations.

However, this does not imply impossibility. With:

• Improved fiscal discipline
• Increased investment in healthcare and infrastructure
• Police reforms and accountability
• Transparent governance

Nigeria can begin to rebuild trust and deliver value to its citizens.

As one policy critique succinctly implies, governance must not merely generate revenue, it must justify it through impact.

Until tangible improvements are felt in everyday life; affordable fuel, accessible healthcare, safety, and opportunity, the question will persist:

Are Nigerians paying for a system that truly serves them?