Only the Powerless Pay Tax: A Historical Review of Tax Evasion and Avoidance in Southern Nigeria, 1900–2022
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Date
2024
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Journal ISSN
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Publisher
Brill
Abstract
Tax evasion and avoidance have remained fundamental reasons for the gradual pace
of development of Nigeria’s economy since the inception of colonial rule. This study
examines the issues of tax evasion and avoidance in Nigeria, and the role of the gov ernment, the citizens and the enabling laws in the under-development of the Nigerian
economy. To present credible evidence around the focus of the research, the study
adopts historical research methods considering both secondary sources (textbooks,
peer-reviewed journal articles and newspaper reports) and primary sources (archi val materials and oral interviews). The eventual findings of the paper indicate that
some Nigerian groups frequently avoid paying their proportionate share of tax. The
paper further finds that although tax reduction can help to reduce the incidence of
tax evasion, resource-poor people frequently pay higher taxes than the wealthy, who
commonly find ways to avoid paying their fair share of taxes; and also that tax officials
manipulate tax rates in favour of rich clients. The study therefore concludes that tax
evasion and avoidance will be mitigated if policymakers ensure that taxation is less
arbitrary and burdensome
Description
Keywords
economy, tax evasion, nigeria, taxation, tax aviodance, underdevelopment
Citation
Afolabi, A. S. (2024). Only the Powerless Pay Tax: A Historical Review of Tax Evasion and Avoidance in Southern Nigeria, 1900–2022. Afrika Focus, 37(1), 56-73. https://doi.org/10.1163/2031356x-20240104