Senior Advocate of Nigeria, Mike Ozekhome, has criticized Nigerian state governments for allegedly relying on taxation to develop their respective jurisdictions.
He emphasized the need for policies that encourage production rather than excessive dependence on tax revenue.
Ozekhome expressed these views to journalists on Saturday at Mike Ozekhome Chambers in Abuja, as attended by Naijaonpoint.
Naijaonpoint previously reported in November 2024 that the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, stated that the former tax law benefited only about three states, which received more than 70% of the Value Added Tax (VAT), leaving other states with minimal allocations.
Adedeji made this disclosure during a public hearing on tax reform bills at the House of Representatives in Abuja.
He explained that the VAT sharing arrangement at that time primarily benefited Lagos, the FCT, and Rivers states, where most corporate head offices are located.
Reacting to taxation across Nigeria, the senior lawyer emphasized that excessive reliance on Value Added Tax (VAT) has made many Nigerian states less competitive and dynamic.
“Which state can you say is outstanding today, apart from having VAT that gives us cheap money? Is VAT really a developmental product? Is that agriculture? I’m asking, is VAT agriculture? Is it that you have produced something? You are just relying on taxation on products from across your area.
“So, to be productive, you need to do what the Asian Tigers did when they were behind us in the 1950s and early 1960s,” he added.
“You need to invest in science and technology. You need to invest in education. You need to invest in job creation.
“The government needs to give incentives.
“You need to provide security. Without security, no one will go to the farm. No one will go to work,” he added.
In June 2025, President Bola Tinubu signed into law four tax reform bills impacting key areas of Nigeria’s fiscal and revenue framework.
In response, extensive consultations were held to ensure the incorporation of diverse opinions into the legislative process.