Tinubu's Tax Reform: Can Elite Consensus Finally Fix Nigeria's Economy?
President Bola Ahmed Tinubu has approved a revolutionary tax reform after 18 months of deliberation and National Assembly passage. The policy, described as pro-poor, exempts the majority of Nigerians and small businesses from tax burdens while ensuring high earners—many who used informal means to avoid responsibility—are now documented and must pay their fair share. This marks a push for 'elite consensus,' where society's wealthiest reinvest their wealth and emotions into nation-building rather than endless criticism or flaunting private jets at congested airports.
Nigeria's informal economy remains one of the world's largest by proportion, a legacy of historical divisions, political assassinations, the civil war, and decades of authoritarianism that left many feeling disconnected from national identity. This vicious cycle produced low budgets, slow infrastructure accumulation, and economic stagnation. Meanwhile, countries like South Africa—with a quarter of Nigeria's population—maintain budgets eight times larger. Angola, Gabon, Algeria, Ethiopia, and Kenya surge ahead in infrastructure because their elites understand collective responsibility.
Beyond tax reform, Tinubu's administration has removed petroleum subsidies, introduced consumer credit, promoted alternative energy, adopted market-driven currency policies, launched student loans, and initiated long-term infrastructure projects. These are hard decisions that prioritize sustainability over popularity, following the path of visionary leaders like Theodore Roosevelt, Lee Kuan Yew, and Lula da Silva's Bolsa Família program.
Critics who insist 'leaders are the problem'—a narrative popularized by Chinua Achebe—ignore that leaders emerge from followers and that leadership exists in every sector. This rhetoric becomes a crutch for escaping personal liability. Former Vice President Osinbajo has advocated for elite consensus since 2021. Aliko Dangote recently urged wealthy Nigerians to build infrastructure rather than just buying private jets.
The question for Nigerians: Will you support this shift toward equity and fairness, understanding that every great nation was once more corrupt than we can imagine? Or will we continue finger-pointing while our best minds and wealth flee abroad? The time for building Nigeria—by all Nigerians, for all Nigerians—is now. Will you be part of the solution or remain part of the problem?