Feature/OPED
Paradox of Profitability: Nigeria’s Banks, Bogus Earnings, and Recapitalisation Dilemma
By Blaise Udunze
Nigeria’s economy has been buffeted by storms in recent years with currency volatility, galloping inflation, surging interest rates, and dwindling consumer purchasing power. Yet, amid these macroeconomic headwinds, corporate organisations, especially banks, continue to post eye-popping profits.
Five of Nigeria’s top 10 banks reported a combined pre-tax profit of N4.6 trillion in 2024, a 70 per cent increase from the previous year with Zenith Bank and Guaranty Trust Holding Company crossing the trillion-naira mark for the first time.
This paradox raises a fundamental question: how are banks thriving on paper in an economy where businesses are shutting down, households are under severe strain, and government debt is ballooning?
As of the first half of 2025, the banking industry finds itself at a crossroads. Barely months after announcing staggering profit results, some in excess of N500 billion amongst commercial banks are now scrambling to meet the Central Bank of Nigeria’s (CBN) recapitalisation directive. Many are racing back-to-back to the capital market to raise fresh funds.
Behind the strong showing of the market leaders lies a deeper concern: a number of smaller commercial banks and regional players are still struggling to formulate credible recapitalization strategies.
Adding to the puzzle is the CBN’s decision to bar lenders from paying dividends and bonuses, insisting that earnings must be preserved to strengthen capital buffers.
For the average Nigerian, the contradiction is glaring: how can banks boast of record profits yet struggle to raise capital to meet regulatory requirements?
Analysts argue that much of these “profits” are not the outcome of robust productivity or genuine market expansion but rather accounting gains from naira devaluation, speculative positions, high interest rate spreads, loopholes in financial reporting, and arbitrary charges.
Profits on Paper, Weak Capital in Reality
Nigerian banks are witnessing a slowdown in profit growth in 2025 as the extraordinary windfalls from naira devaluation and high interest rates taper off.
Data from the Nigerian Exchange Limited (NGX) show that the combined after-tax profit of nine major lenders, including Zenith, GTCO, Access, UBA, Fidelity, Wema, Stanbic IBTC, FCMB, and FBN Holdco rose marginally by 0.74 per cent to N1.35 trillion in Q1 2025, compared to the record 274.3 per cent surge posted a year earlier.
Much of the earlier profit boom was driven by the floating of the naira in mid-2023 and subsequent devaluations, which allowed banks to book huge foreign exchange revaluation gains simply by holding dollar assets. However, analysts warn these paper gains were non-cash items that added little to banks’ real capital strength.
The apex bank has since barred lenders from deploying such gains for dividends or operating expenses, insisting they be held as buffers against future currency shocks.
With foreign exchange gains now normalising and credit expansion still sluggish, analysts say banks’ reliance on one-off windfalls has exposed underlying weaknesses in core operations such as lending, deposit mobilisation, and fee income.
“The era of abnormal profit growth is over,” said Tony Brown, a banking analyst in Abuja. “The numbers looked strong on paper, but the real test will be how banks sustain earnings through traditional banking activities.”
“The so-called profits are accounting gymnastics,” a Lagos-based analyst said. “They look good in shareholder reports but add little to the core equity needed for recapitalization.”
Banks Profit as Rate Hikes Widen Interest Spreads, squeeze Borrower
Nigerian banks are cashing in on wide interest rate spreads, boosted by the CBN’s tight monetary stance, which has kept the policy rate at 27.5 per cent into 2025. While lending rates have soared into double digits, deposit rates remain low, leaving savers shortchanged and borrowers under pressure.
Analysts say this asymmetric response allows banks to preserve profitability at customers’ expense. “Simply buying government Treasury bills with customers’ deposits was enough for banks to return profit with yields reaching 25 per cent,” said Abuja-based analyst, Chike Osigwe. “On top of that, they charge high lending rates while paying much less to depositors.”
Professor Uche Uwaleke, President of the Capital Market Academics of Nigeria (CMAN), noted that Tier-1 banks are declaring huge profits despite weak economic growth. He warned of a growing disconnect between banks’ fortunes and struggling sectors like manufacturing and agriculture, stressing the need to ensure customers and the real economy share in banking gains.
Mirage of profits powered by Arbitrary Charges
Nigerian banks’ record profits in 2024 have been linked not only to monetary policy tailwinds but also to a surge in arbitrary charges imposed on customers. Despite CBN’s repeated sanctions for breaching its Guide to Charges, lenders continue to rack up billions from fees on transfers, withdrawals, ATM use, account maintenance, SMS alerts, and other deductions.
With over 312 million active bank accounts, these charges now contribute more to profitability than traditional lending or FX operations. Five tier-1 banks alone posted N4.6 trillion in pre-tax profit in 2024, a 69.5 per cent jump from the previous year.
“Banks have turned customers into easy prey,” said financial reform advocate Dr Bruno Agbakoba. Consumer advocate Mrs Toun Adeniran added that households and SMEs are being “drained by unexplained deductions.” A former CBN official admitted enforcement is “a challenge” despite sanctions. In the words of one customer, Nigeria’s banking system has become “a pain in the neck” profitable for lenders, but punishing for households and enterprises struggling to survive in a hostile economic environment.
Critics also warn that this reliance on “blood profits” discourages innovation and credit expansion, further widening the gap between banks’ fortunes and the struggles of businesses and households. Michael Owhoko, a Public Policy Analyst, warned that instead of boosting their image, the massive profits of Nigerian banks are fueling negative public perception, as many views their practices as harmful to individuals and especially small and medium businesses.
Why Banks Are Quietly Rationing Liquidity
Towards month ends, Nigerians are been frustrated by stalled online transfers, frozen mobile apps, and endless queues at ATMs and banking halls. While banks blame “network issues,” analysts say the real problem runs deeper.
With naira devaluation, inflation, and the CBN’s tight monetary stance squeezing liquidity, banks are quietly restricting access to cash to stabilise their books. “When banks throttle withdrawals or delay digital transactions, it is often a survival tactic,” a Lagos-based analyst explained, noting that recapitalization pressures have worsened the strain.
The CBN’s new recapitalisation directive has raised minimum capital thresholds for banks, forcing many institutions to restructure their balance sheets. With dividend payouts curtailed and fresh capital requirements looming, banks are under immense pressure to conserve every naira they can. Restricting customer access through “network downtimes” has quietly become one of the industry’s unspoken strategies.
Banks Race to Meet New Capital Thresholds
With inflation and naira depreciation eroding the old capital base, the CBN has raised minimum capital requirements: N500 billion for international banks, N200 billion for national banks, N50 billion for regional and merchant banks, and N20 billion and N10 billion for national and regional non-interest lenders, respectively. All banks must comply by April 2026.
So far, nine (9) banks: including Access Holdings, Zenith Bank, Stanbic IBTC, Wema Bank, Lotus Bank, Jaiz Bank, Providus Bank, Greenwich Merchant Bank and GTBank have met the target. FirstBank’s oversubscribed rights issue brought in N187.6 billion, with a N350 billion private placement underway. GTBank recently surpassed the benchmark after a N365.85 billion rights issue, raising its capital to N504 billion.
Mid-tier lenders such as FCMB and Fidelity Bank are still raising funds, though analysts expect them to succeed given strong investor appetite. Fitch Ratings noted that most banks are likely to meet the new thresholds ahead of deadline.
While the policy aims to fortify Nigeria’s banking system against shocks, it has exposed the contradiction between glossy profit declarations and actual capital adequacy. If profits were as robust as reported, banks would not be racing to the capital market or wooing investors for fresh injections.
Dividend and Bonus Restrictions
To compound matters, the CBN recently restricted dividend payouts and executive bonuses. This move, while unpopular among shareholders, underscores the regulator’s concern that banks are not retaining enough earnings to build capital buffers.
This temporary suspension, according to the CBN, is part of a broader strategy to reinforce capital buffers, improve balance sheet resilience, and ensure prudent capital retention within the banking sector.
Meanwhile, Nigerian banks paid a record N951 billion in dividends to shareholders in 2024, representing an 87 per cent increase from the previous year.
For investors, it has been a rude awakening. Shareholders were promised juicy returns based on the record profits, but now the CBN is saying those same banks can’t afford to pay dividends. Something doesn’t add up.
Shadows of Creative Accounting in Banking Sector
Allegations of creative accounting continue to dog Nigeria’s banking sector, with analysts warning that dazzling profit numbers may not always reflect underlying reality. While not all institutions engage in such practices, the structural weaknesses of the financial system create room for manipulation.
“The financial sector regularly distorts earnings through creative accounting,” warns Bolatito Bickersteth of research firm Stears. “A significant portion of profit often lies in non-cash items, making true viability difficult to assess.”
One common tactic is the smoothing of earnings through frontloading expenses or deferring liabilities. Provisions for bad loans, for instance, are sometimes delayed, making banks appear healthier than they are. Similarly, loan books are often overstated, with risky credits classified as performing or backed by inflated collateral. This practice was central to the 2009 banking crisis that forced the CBN to sack several CEOs. Mercy Okon, Investment Research Specialist at Parthian Securities, emphasizes the systemic impact, “Huge profits seen in banks were due to unrealized FX gains, heightened interest income, and boosted transaction fees, not necessarily loan growth or real sector lending.”
Another area of concern is tax arbitrage, where lenders exploit gaps between tax rules and CBN guidelines to minimize taxable profits. Beyond that, some institutions reportedly use subsidiaries and offshore accounts to mask losses or inflate revenues, creating balance sheets that look stronger than reality.
Experts also fault the country’s weak auditing culture. Many banks rely on local audit firms with close management ties, raising doubts about independence and compliance with global reporting standards. As a result, governance lapses often escape scrutiny until crises erupt.
The big irony, analysts note, is that while Nigerian banks are declaring record profits, they are simultaneously racing to raise fresh capital under the CBN’s recapitalisation directive.
This contradiction, underscores the distortions created by weak oversight and questionable accounting practices.
The Public Illusion of Prosperity
The paradox points to a deeper credibility gap in Nigeria’s corporate financial reporting. To the public, banks appear prosperous, yet in reality, they are thinly capitalized and vulnerable to systemic shocks.
The irony is not lost on Nigerians who endure soaring lending rates, endless bank charges, and poor service delivery, only to be told that their banks are both profit-rich and capital-poor at the same time.
Way Forward:
To restore trust in Nigeria’s banking sector, regulators must enforce stricter consumer protection policies and closely monitor arbitrary charges. Agencies like the FCCPC and NGOs should actively safeguard customer interests, while the CBN ensures fair pricing and balance between lending and savings rates.
Some existing policies driving excessive fees need urgent review to avoid discouraging use of banking services and undermining the cashless policy, especially in an underbanked society.
Banks, on their part, must prioritize transparency, empathy, and integrity to rebuild reputation, while tighter financial disclosures, stronger corporate governance, and truly independent audits are essential for sustainable growth.
The recapitalization drive is long overdue, especially given the rising risks from a fragile economy, dollar shortages, and exposure to sovereign debt. However, unless transparency improves in financial reporting, the cycle of bogus profits and weak fundamentals will persist.
The recapitalization process should be paired with reforms in disclosure standards and stricter audit independence to ensure that profit figures reflect genuine financial strength.
Until then, the paradox remains: Nigerian banks that claim to be “rolling in profits” are the same institutions struggling to muster the funds needed to secure their future.
Blaise, a journalist and PR professional writes from Lagos, can be reached via: [email protected]
By Fola Baderin
By 2030, more than 25 billion devices are expected to be connected worldwide, each one a potential gateway for both innovation and risk. Already, 87% of companies identify AI as a top business priority, and over 76% are actively using AI in their operations. These numbers reflect a profound shift: technology is no longer a backstage support act but a strategic force shaping economies, societies, and everyday life.
Artificial Intelligence (AI) and the Internet of Things (IoT) sit at the heart of this transformation. Together, they are redefining how decisions are made, how risks are managed, and how value is created across industries. From hospitals monitoring patients in real time to banks using predictive analytics to stop fraud before it happens, AI and IoT are moving from abstract concepts to everyday business tools.
Yet this expansion comes with complexity. As organisations embrace cloud platforms, remote work, and IoT‑enabled systems, their digital footprints grow larger, and so do the threats. Cybersecurity has become a frontline issue, no longer a technical afterthought but a pillar of resilience and trust.
The role of IT has changed dramatically. Once focused on maintenance and uptime, IT teams now sit at the centre of strategy and risk management. Cloud‑first architectures and interconnected networks have introduced new vulnerabilities, forcing IT leaders to act not just as problem‑solvers but as proactive partners in innovation.
AI is proving indispensable in this new environment. It can analyse vast datasets, detect anomalies, and automate responses at machine speed, capabilities that traditional approaches simply cannot match. Combined with IoT, AI delivers real‑time visibility across connected devices, enabling predictive maintenance, intelligent monitoring, and faster decision‑making. These are not abstract benefits; they are the difference between preventing a cyberattack in seconds or suffering a costly breach.
But the story is not only about opportunity. The rapid adoption of AI and IoT raises pressing questions about ethics, privacy, and governance. Automated decision‑making must be transparent, accountable, and fair. Organisations also face a widening skills gap, as demand for professionals who can responsibly manage advanced technologies outpaces supply.
Striking the right balance between innovation and control is essential. Security‑by‑design principles, strong governance frameworks, and continuous risk assessment are no longer optional extras. They are the foundation for trust in a digital economy.
Looking ahead, IT will continue to evolve as AI and IoT become embedded in everyday operations. Success depends not only on adopting advanced technologies, but on aligning them with business goals, regulations, and culture.
For Nigeria, this transformation is both a challenge and an opportunity. With its vibrant fintech sector, growing digital economy, and youthful workforce, the country is well‑placed to harness AI and IoT for growth. Lagos alone hosts hundreds of startups experimenting with AI‑driven financial services, while smart city initiatives in Abuja and other urban centres are exploring IoT for traffic management, energy efficiency, and public safety.
At the same time, Nigeria faces unique vulnerabilities. The country has one of the fastest‑growing internet populations in Africa, but also one of the most targeted by cybercriminals. Reports suggest that Africa loses over $4 billion annually to cybercrime, with Nigeria accounting for a significant share. As more devices and systems come online, the stakes will only rise.
Government policy will play a decisive role. Nigeria’s National Digital Economy Policy and Strategy (2020–2030) already highlights AI and IoT as critical enablers of growth. But translating policy into practice requires investment in infrastructure, stronger regulatory frameworks, and public‑private collaboration. Without these, the promise of AI and IoT could be undermined by weak security and poor governance.
Education and skills development are equally vital. Nigeria’s youthful population which is over 60% under the age of 25 represents a massive opportunity if properly trained. Universities and technical institutes must integrate AI, cybersecurity, and IoT into their curricula, while businesses should invest in continuous upskilling. Otherwise, the skills gap will widen, leaving organisations vulnerable and innovation stunted.
Ethics and trust must also remain central. Nigerians are increasingly aware of data privacy concerns, from mobile banking to health records. Embedding transparency and accountability into AI systems will be critical for public acceptance. Leaders must ensure that innovation does not come at the cost of fairness or human rights.
Real‑world examples already show the potential. Nigerian hospitals are beginning to explore AI‑enabled diagnostic tools, while logistics companies use IoT to track deliveries in real time. These innovations demonstrate how technology can improve lives and strengthen businesses, but they also highlight the need for robust safeguards.
Ultimately, Nigeria’s digital future will be shaped not only by technology but by leadership. IT leaders, policymakers, and entrepreneurs who embrace AI and IoT responsibly with a clear focus on security, ethics, and long‑term value creation. This will be best positioned to navigate an increasingly complex threat landscape. The question is no longer whether to adopt these technologies, but how to do so in a way that builds resilience, trust, and sustainable growth for Nigeria’s digital economy.
Fola Baderin is a cybersecurity consultant and AI advocate focused on shaping Nigeria’s digital future
By Blaise Udunze
When the federal government approved the write-off of about $1.42 billion and N5.57 trillion in legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, it was rightly described as a landmark decision. After years of disputes, reconciliations, and contested figures, Nigeria’s most important revenue institution was, at least on paper, given a cleaner slate.
The approval, contained in a report prepared by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented at the last year November meeting of the Federation Account Allocation Committee (FAAC), effectively wiped out 96 percent of NNPC’s dollar-denominated obligations and 88 percent of its naira liabilities accumulated up to December 31, 2024. It resolved long-standing balances arising from crude oil liftings, joint venture royalties, production-sharing contracts, and related arrangements.
Judging it critically, the decision carries both promise and peril, but can be viewed from the perspective of a country desperate to restore confidence in public finance management. It offers an opportunity to reset relationships, clean up accounting records, and move forward under the Petroleum Industry Act (PIA). Yet, it also exposes deep structural weaknesses in Nigeria’s oil revenue governance, weaknesses that, if left unaddressed, could turn today’s debt relief into tomorrow’s fiscal regret.
Context matters. The debt write-off comes not during a period of revenue abundance, but at a time when Nigeria’s upstream revenue performance is under severe strain. According to the same NUPRC document, the commission missed its approved monthly revenue target for November 2025 by N544.76 billion, collecting only N660.04 billion against a projected N1.204 trillion.
Royalty receipts, the backbone of upstream revenue, tell an even starker story. It is alarming that against an approved monthly royalty projection of N1.144 trillion, only N605.26 billion was collected, leaving a shortfall of N538.92 billion. Cumulatively, by the end of November 2025, the revenue gap stood at N5.65 trillion, with royalty collections alone falling short by N5.63 trillion. These figures underscore how fragile Nigeria’s fiscal position remains, even as trillions of naira in historical obligations are being written off.
To be fair, the debts forgiven were not incurred overnight. They are the product of years of disputed remittances, lacking transparent accounting practices, and overlapping institutional roles, particularly under the pre-PIA regime. As petroleum economist Prof. Wumi Iledare has repeatedly observed, the former Nigerian National Petroleum Corporation combined regulatory, commercial, and operational functions, making revenue reconciliation cumbersome and frequently contested.
That legacy continues to haunt the system, as witnessed with the ongoing dispute between NNPC Ltd and Periscope Consulting, the audit firm engaged by the Nigeria Governors’ Forum, over an alleged $42.37 billion under-remittance between 2011 and 2017, which illustrates how unresolved the past remains. Though NNPC insists all revenues were properly accounted for as claimed, Periscope maintains that significant gaps persist, forcing FAAC to mandate yet another reconciliation exercise. This recurring pattern of audits, counterclaims, and stalemates has weakened trust in the federation revenue system and eroded confidence among states that depend on oil proceeds for survival.
Crucially, the debt write-off does not mean NNPC has turned a corner financially. Statutory obligations incurred between January and October 2025 remain on the books, amounting to about $56.8 million and N1.02 trillion. Although part of the dollar component was recovered during the period under review, the accumulation of new liabilities so soon after reconciliation raises uncomfortable questions about whether old habits are being replaced with genuine fiscal discipline.
More troubling still is what NNPC’s own audited financial statements reveal about its internal financial health. Despite recording a profit after tax of N5.4 trillion on revenues of N45.1 trillion in 2024, the company’s inter-company debts ballooned to N30.3 trillion, representing a 70 per cent increase within a single year. This is not debt owed to external creditors but largely obligations between NNPC and its subsidiaries, effectively the company owing itself.
Records show that of 32 subsidiaries, only eight are debt-free, and the rest, particularly the refineries, trading arms, and gas infrastructure units, remain heavily indebted to the parent company. There was a recurring cycle where profitable units subsidise chronically underperforming ones, and accountability steadily erodes because cash that should fund maintenance, expansion, and efficiency improvements is instead trapped in internal receivables.
The refineries offer a stark illustration whereby the Port Harcourt Refining Company alone owed N4.22 trillion in 2024, more than double its 2023 figure, while Kaduna and Warri refineries followed closely, with debts of N2.39 trillion and N2.06 trillion respectively. Despite the repeated failed turnaround maintenance with many years of rehabilitation spending, none have operated sustainably at commercially viable levels. Their continued dependence on financial support from the parent company highlights the cost of postponing difficult restructuring decisions.
And, for this reason, international observers have long warned about these structural weaknesses. One of the critics, the World Bank, has repeatedly flagged NNPC as a major source of revenue leakages. It further noted that the persistent gaps between reported earnings and actual remittances to the Federation Account. Even after the removal of petrol subsidies, the bank observed that NNPC remitted only about 50 per cent of the revenue gains, using the rest to offset past arrears. Such practices, while perhaps defensible in internal cash management terms, undermine fiscal transparency and weaken Nigeria’s macroeconomic credibility.
This is why the central issue is not the debt write-off itself, but what follows it because debt forgiveness is not reform. Without firm safeguards, it risks entrenching the very behaviours that created the problem in the first place. As Prof. Omowumi Iledare has warned, the scale and pace of the inter-company debt build-up represent a governance test rather than a mere accounting anomaly. Allowing subsidiaries to operate indefinitely without settling obligations is incompatible with the idea of a commercially driven national oil company.
The fact remains that if NNPC wants to function as a true commercial holding company under the PIA, it must enforce strict settlement timelines, restructure or divest non-viable subsidiaries, while clearly separating legacy debts from new obligations. With this, it holds subsidiary leadership accountable for cash flow and profitability. Independent, real-time audits and transparent reporting must become routine features of governance, not emergency responses triggered by controversy.
There is also a broader national implication. At a time when Nigerians are being asked to accept higher taxes, reduced subsidies, and fiscal tightening, large-scale debt write-offs without visible accountability risk undermining the legitimacy of the entire revenue system. Citizens cannot be expected to bear heavier burdens while systemic inefficiencies in the country’s most strategic sector persist.
Of a truth, the cancellation of NNPC’s legacy debts could mark a turning point in Nigeria’s fiscal governance, but only if it is not treated as its conclusion but the beginning of reform.
If discipline, transparency, and commercial accountability follow, the decision may yet help reposition NNPC as a profitable, credible, and PIA-compliant institution. If not, today’s clean slate will simply defer the reckoning until the next reconciliation, the next audit dispute, and the next fiscal crisis.
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]
By Dr Austin Orette
The grandiosity of Nigerians when they discuss events and situations can be very funny. If the leaders use this kind of creativity in proffering solutions, we may be able to solve some of the problems that plague Nigeria perennially.
There seems to be a sublime affectation for new lingos when the system is being set to punish Nigerians. It is a kind of Orwellian speak.
Recently, there was no electricity throughout the country. The usual culprit and government spoke; people came out to tell us the power failure was due to the collapse of the National grid. Does it really matter what is collapsing? This is just an attempt by some government bureaucrats to sound intelligent.
Intelligence is becoming a borrowed commodity from the IMF or World Bank. What does it mean when you tell Nigerians that the national grid collapsed? Is that supposed to be a reassurance, or it is said to give the assurance that they know something about the anemic electricity, and we should get used to the darkness. This is a language that is vague and beckons the consumer to stop complaining. Does that statement mean anything to Nigerians who pay bills and don’t see the electricity they paid for? If they see it, it comes with an irregular voltage that destroys their newly purchased appliances. Just tell or stay quiet like in the past.
Telling us that a grid collapse is a lie. We have no national grid. Do these people know how silly their language sounds? Nigeria produces less than 10,000 megawatts of electricity for a population of 200 million people. How do you permutate this to give constant electricity to 200 million people? It is an insult to call this low output a national grid. What is so national about using a generator to supply electricity to 200 million people? It is simple mathematics. If you calculate this to the minute, it should not surprise you that every Nigerian will receive electricity for the duration of the blink of an eye. They are paying for total darkness, and someone is telling them they have an electricity grid.
If you can call the 10,000-megawatt national grid collapsed, it means you don’t have the mind set to solve the electricity problem in Nigeria.
To put it in perspective is to understand the basic fact that the electrical output of Nigeria is pre-industrial. Without acknowledging this fact, we will never find solutions as every mediocre will come and confuse Nigeria with lingos that make them sound important.
It is very shameful for those in the know to always use grandiose language to obfuscate the real issues.
South Africa with a population of sixty million produces about 200,000 megawatts of electricity daily. Nigeria produces less than 10,000 megawatts. Why South Africa makes it easy to lift the poor from poverty, Nigeria is trying to tax the poor into poverty.
The architects of the new tax plan saw the poor as rich because they could afford a generator.
A non-existent subsidy was removed, and the price of fuel went through the roof. Now the government says they are rich. What will they get in return for this tax extraction? Why do successive Nigerian governments always think the best way to develop Nigeria is to slap the poor into poverty? What are the avenues for upward mobility when youth corps members are suddenly seen as rich taxpayers? Do these people know how difficult it is to start a business in Nigeria?
After all the rigmarole from Abuja to my village, I cannot get a government certificate without a-shake down from government bureaucrats and area boys. The government that is so unfriendly to business wants to tax my non-existing businesses. Are these people in their right state of mind? Why do they think that taxing the poor is their best revenue plan? A plan like this can only come from a group of people who have no inkling of what Nigerians are going through. People can’t eat and the government is asking them to share their meager rations with potbellied people in Abuja.
Teach the people how to fish, then you can share in their harvest. If an individual does what the government is doing to Nigerians, it will be called robbery, and the individual will be in prison. When the government taxes people, there is a reciprocal exchange. What is being done in Nigeria does not represent fair exchange.
Nigerians have never gotten anything good from their government except individual wealth that is doled out in Abuja for the selected few.
The question is, will Nigerians have a good electricity supply? NO. Will they have security of persons and properties? No. Will they have improved health care? NO. Will there be good roads? No. Will they have good schools and good education? No.
Taxation is not good governance. A policy like this should never be rushed without adequate studies. Once again, our legislators have let us down. They have never shown the people the reason they were elected and to be re-elected. They are not playing their roles as the watchdog and representatives of the people. Anyone who voted for this tax bill deserves to lose their positions as Senators and Members of the House of Representatives.
We are not in a military regime anymore. Nigerians must start learning how to exercise their franchise. This taxation issue must be litigated at the ballot box. The members of the National Assembly have shown by their assent that they don’t represent the people.
In a normal democracy, taxation without representation should never be tolerated. They must be voted out of office. We have a responsibility and duty to use our voting power to fight unjust laws. Taxation without representation is unjust. Those voted into power will never respect the citizens until the citizens learn to punish errant politicians by voting them out of office. This responsibility is sacred and must be exercised with diligence.
Dr Austin Orette writes from Houston, Texas
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