Ben Murray-Bruce, Federal Senator representing the Bayelsa East Constitutency, recently tweeted this while sharing his ideas to fund a social benefits scheme for unemployed graduates in Nigeria.
I don't agree with his plan and I don't think Nigeria can successfully implement this scheme as things currently stand. Here's why:
1.
There is NO confidence that the extra tax will be used for the intended purpose. This may be the most basic issue with taxes in Nigeria. If we disregard the other issues with this proposal for a moment and assume 'salary earners' agree to fund the social benefits scheme from their earnings - it comes down to trust. I, and many other Nigerians, simply don't trust elected officials to manage funds judiciously. And why would we? News media is rife with reports of misappropriated funds. We don't see results of the taxes we already pay!
2.
The Social Security Net is a Federal proposal; Personal Income Tax is paid to State Governments. State Governors did not promise N5k for unemployed graduates, the Federal Government did. Except the Nigerian Tax system is overhauled, which opportunity we should frankly seize for more productive ideas, increased Income Taxes simply mean more revenue to the State Governments. States, most of which are already struggling to meet their obligations, would happily jump at the extra income and throw it down the recurrent expenditure drain!