UNIZIK Don, Prof. Umenweke Links Breach Of Social Contract To Tax Evasion In Nigeria

Prof. Meshach Nnama Umenweke, a distinguished Professor of Tax Law at the Department of Public Law, Nnamdi Azikiwe University, Awka, has identified the breach of social contract by the government as a significant factor contributing to tax evasion in Nigeria. During his inaugural lecture on Thursday, September 26, 2024, titled “Nigerian Taxation and the Social Contract: A Legal Analysis of the Benefits and Breaches,” he emphasized that sustainable change in tax compliance can only occur if the government fulfills its obligations under the social contract with the citizens.

Prof. Umenweke argued that respect for the social contract should serve as the benchmark for evaluating good governance in Nigeria, noting that a government’s ability to provide for its citizens determines the willingness of individuals to pay taxes. He further criticized the current tax collection system, stating that an effective tax system must be clear, specific, and predictable in terms of rates and laws.

He highlighted that tax evasion and irregularities are prevalent in Nigeria’s informal sector, calling for a robust tax regulatory framework. In his lecture, he outlined the primary objectives of a sound tax system, which include fostering fiscal responsibility and accountability, promoting economic growth and development, ensuring the government has stable resources for public services, redistributing wealth, and addressing income inequality.

Prof. Umenweke also shed light on the various challenges undermining Nigeria’s tax system, such as the absence of essential social amenities, rampant corruption, illegal and multiple tax impositions, and the misuse of tax agents and consultants. He advocated for the amendment of Chapter 2 of the Nigerian Constitution to make its provisions justiciable, enabling citizens to hold the government accountable through judicial means. Additionally, he called for the empowerment of the Joint Tax Board to enhance its capacity to regulate the country’s tax system effectively.

In his recommendations, Prof. Umenweke stressed the importance of social reorientation on the benefits of taxation, urging taxpayers to claim tax reliefs where applicable and encouraging a more litigious approach among citizens to challenge tax-related injustices.

The Acting Vice-Chancellor, Prof. Carol Arinze-Umobi, represented by Prof. Frederick Odibo, lauded the theme of the lecture, noting its relevance in addressing Nigeria’s tax compliance challenges. She expressed hope that the insights shared during the lecture would inspire Nigerians, particularly those in the informal sector, to improve their tax practices. She also commended the Inaugural Lecture Committee, led by Prof. Richard Uwakwe, for their efforts in maintaining the tradition of hosting such lectures at the university.

The event concluded with a vote of thanks delivered by Prof. Felicia Anyogu, who praised Prof. Umenweke for delivering an enlightening and thought-provoking lecture. The University Orator, Prof. Frank-Collins Okafor expertly anchored the event that took place at the University Auditorium.