Tax Compliance in Nigeria: The Case of Lagos State

As part of every economy, the government thus largely plays a role in ensuring the welfare of citizens and
sustainable development. in order to achieve this feat, the government thereby engage in numerous task
by spending public fund as government expenditure. Hence, as the government exists not as a profitmaking firm or group of individuals accumulating wealth for themselves, the government as a machinery
of the state thereby device certain means or measures promulgated by law as part of the constitution and
reflected as the constitutional duties of the government in order to generate fund. Amongst these measures
is the exercise of tax system.
The tax system thereby remains note worthily as a procedure promulgated and implemented by every
government of every country to raise funds for their public projects. This system notably empowers the
government to demand from citizens as well as foreigners in a country certain amount of money of their
earnings, of which is to be paid for enjoying the creation of public utilities. A tax thus is a compulsory
levy enforced by the government of a state, to be paid by citizens and foreign nationals situated in the
country over a period of time, usually monthly or annually. Tax payments by individuals thus serve as one
of the means by which the government raises funds for the accomplishment of most of their constitutional
task.
In Nigeria, tax payments thus are constitutionally upheld by state governors and the federal government.
Payments such as this gives the state and the federal governments the enablement to control land, landed
properties (buildings and firms) as well as public utilities for public interest. In terms of land, the
government thereby demand for Land Use Charge or Lease rent at specified intervals while for landed
properties (buildings and firms), the government demand tenement rate from owners of residential
buildings and from firms as they use their buildings for either industrial or commercial use, the remittal of
different forms of tax like capital gain tax, profit tax and sometimes probate tax. Alongside, there is the
demand for income tax from civil servants or public officers or federal/state/local government employees.
These compulsory levies as tax evidently assist and enable the government in their effort for the provision
of social amenities for peoples comfort or infrastructures to aid industrialization or promote economic
development. Most certainly, well directed and efficiently utilized public fund raised from tax payments
thus make visible the creation and upgrading of hospitals in terms of primary health care; the
establishment, rehabilitation and funding of institutions for learning particularly primary and secondary
schools; as well as the creation of other public utilities like efficient road networks and comfortable
means of transportation.
These dividends of the tax system as deliverables necessary for the upliftment of Lagos State to be a true
place of comfort, the nations pride as a result a mega city as it remains the countrys centre of excellence
evidently cannot be overemphasized, been that such can only be realized by the prompt payment,
consistent remittance and adherence of every taxable individual to payment of tax for the realization of
the Lagos State of our dream. This is a noble and worthy endeavour every citizen, employee and residents
in Lagos are encouraged to fulfill and or undertake.
Eko o ni baje o!