Country Note: Does a Local Government in Nigeria Have the Power to Tax?

Abstract

A local government is the third level in Nigeria’s federal government structure. It is this administration that addresses the affairs of the local people. Unfortunately, the local governments experience difficulty when attempting to raise the funds that are required for effective service delivery. Legally, this unfortunate situation has been attributed to their lack of taxing power. But this article argues otherwise. It maintains that, although the constitution is ineptly drafted in this respect, local governments are constitutionally empowered to tax. A survey identified certain socio-legal factors militating against the exercise of taxing powers and provided possible remedies to the identified problems. Nigeria, local government, local people, tax, taxing powers, impose tax, collect tax, federalism, socio-legal problems; lack of financial authority.

A Legal Review of the Bounds and Theories of Taxation as a Revenue Pool in Contemporary Nigeria

“…He therefore suggested the reformation of tax laws, reorientation of citizens and the residents towards tax necessity and accountability and probity in governance so as to curb tax evasion and tax avoidance. 12 Rotimi 13 , likewise addressing the impact of tax compliance on economic development, identified the paucity in tax compliance. He submitted that effective submission of compliance to tax laws typically means the true reporting of the taxable income, appropriate 2 Nwuzor D.C and Onah C.A, 'The Implications of Taxation on Revenue Generation in Nigeria' [2022] (3) (3) LASJURE.…”

“…11 Ibid. 12 Ibid. 13 Rotimi O, 'Impact of Tax Compliance on Standard of Living in Nigeria' [2021] (11) (1) The Journal of Accounting and Management.…”