A village of 7 big farming-families was often invaded by enemies, and also cheated in trade by foreigners. So, the seven families decided to form a union among themselves for security, collaborative production, trade bargains and local progress. Also, they agreed that each family should be contributing 10% of their profits for running their union. And by contributing the 10% of their profit, the families became entitled to security, regulation and free association in the union. So, the fidelity in contributing their share for regulating or building a country qualifies individuals as taxpayers. On the contrary, if outsiders seize and take resources from their lands, and they have to beg for shares of the funds from the sale of their resources, they become conquered tax-beggars, with imaginary entitlements or rights in the union.
Frequently, Nigerians from different parts make demands from the supposed ‘national treasury’. These groups of Nigerians make claims on government-obtained revenues, as “our tax”, even without clarifying their contributions. They simply place a tag of “our tax money” on all revenues, which mostly comprise of funds from selling crude resources from other communities. And with this mentality of government control of all resources, Nigerians focus on begging, instead of developing their various lands.
Tax is defined as “an amount of money levied by a government on its citizens and used to run the government, country, a state, a county, or a municipality.”[1] Taxes come from the economic output of the people (taxpayers) who live and work in a society. The government takes agreed percentage from the people, in order to provide security, public works and regulatory services. Also, government uses the tax to support the productive capacities of the people.
Unfortunately, the tax-system in Nigeria is inadequate due to the false process of national formation. The ethnic communities, who should contribute taxes from the primary productivity of their mineral resources are militarily-barred from their resources.[2][3][4] Instead, the militarized government sells their resources to industrialized nations, despite the developed nations’ Human Rights claim that “no one shall be arbitrarily deprived of his property.”[5] So, the ethnic communities[6] go begging funds from the federal government, instead of training their natives to produce what they need from their resources.
Land and mineral resources are the primary factors of production – at the foundation of other forms of production. Mineral resources are used in industries for producing machines, energy, gadgets and infrastructure for human use. Lands are used as base for construction, agriculture, sports, research, production and all other activities. Presently, while the ethnic communities’ minerals are seized using Nigerian-Mineral-and-Mining-Act, their lands are seized using the Land Use Act[7]. Then the natives who resist or demand ownership of their lands or resources are either imprisoned,[8] bribed[9] or killed[10].
Today, Nigerians from every side are begging government for more share of the revenue from sale of the primary factors of production, which are mineral resources. Doctors, lecturers, teachers and civil servants go on strike – for more resource-revenue. Even the communities that own the resources beg for royalties and allocations. In return, the federal government creates other channels – states, local governments, districts and constituencies – through which the ethnic communities and individuals can beg for resource funds.
Since government seizes and sells the resources for primary-production, it becomes almost impossible for government to properly tax the people who do not produce anything. Instead, government agents haphazardly tax people’s service-income and consumption. So, Nigeria does multiple-taxation: first, your mineral resources; second, your occupation; and third, VAT on everything you buy. But despite the claim of internally-generated-revenue in Nigeria, the main source of revenue remains sale of crude resources. Currently, crude oil and gas revenue constitutes about 80 percent of foreign trade and revenue in Nigeria.
Nigeria may never develop economically, if the central government continues to hinder the primary productivity of the people. Seizing people’s mineral resources makes handling resource-management and governance bulky for government. Also, with the resources-seizing, the original taxpayers – ethnic communities and individuals – will remain tax-beggars until they retrieve their resources. When they educate their people to retrieve their lands and resources for producing what they need, then they can pay proper taxes. This will form a foundation of government-legitimacy in Nigeria, since “the will of the people shall be the basis of the authority of government.”[11] Then, Nigerians can confidently demand, bargain and refer to government revenue and expenses as taxpayers’ money.
[1] Microsoft® Encarta® 2009. © 1993-2008 Microsoft Corporation. All rights reserved.
[2] Nigerian minerals and mining act 2007 act no. 20, chapter 1, Part 1, Section 1, paragraph 2 “… all lands in which minerals have been found in Nigeria and any area covered by its territorial waters or constituency and the Exclusive Economic Zone shall, from the commencement of this Act be acquired by the Government of the Federation…” “No person shall search for or exploit mineral resources in Nigeria or divert or impound any water for the purpose of mining except as provided in this Act.” “The property in mineral resources shall pass from the Government to the person by whom the mineral resources are lawfully won, upon their recovery in accordance with this Act.”
[3] Nigerian minerals and mining act 2007 act no. 20, chapter 1, Part 1, Section 2, paragraph 1
[4] Nigerian minerals and mining act 2007 act no. 20, chapter 1, Part 1, Section 1, paragraph 3
[5] Human rights Declaration, Article 17, section 2
[6] Ethnic communities are represented by members of Federal house of representatives and state house of assembly
[7] 29th March 1978, Land use act. P7 “… to vest all land comprised in the territory of each state (except land vested in the federal government or its agencies) solely in the Governor of the State, who would hold such land in trust for the people and would henceforth be responsible for allocation of land in all urban areas to individuals resident in the state and to organization for residential, agricultural, commercial and other purposes”.
[8] Ken Saro Wiwa
[9] Ogoni 4
[10] Odi Massacre
[11] Declaration of Human Rights, Article 21, para 3