CITN warns against oil dependence, urges tax-driven development

The President and Chairman of the Council of the Chartered Institute of Taxation of Nigeria (CITN), Mr Samuel Agbeluyi, has warned that Nigeria’s continued dependence on oil revenue is economically risky and unsustainable. He urged the federal government to shift its focus towards taxation as a more stable and reliable source of funding for national […]

The President and Chairman of the Council of the Chartered Institute of Taxation of Nigeria (CITN), Mr Samuel Agbeluyi, has warned that Nigeria’s continued dependence on oil revenue is economically risky and unsustainable.

He urged the federal government to shift its focus towards taxation as a more stable and reliable source of funding for national development.

Speaking in Lagos during a pre-conference presidential chat ahead of the CITN’s 27th Annual Tax Conference, Agbeluyi stressed the urgent need for Nigeria to diversify its revenue base.

The conference, scheduled to be held from May 12 to 16, 2025, will bring together policymakers, tax professionals, industry leaders, and other stakeholders under the theme “Taxation for Development: Policies, Law and Implementation.”

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Agbeluyi said Nigeria cannot continue to rely on oil revenue due to its unpredictable nature. He pointed out that global oil prices are often determined by factors beyond the country’s control, such as geopolitical conflicts, natural disasters, or policy changes in foreign countries.

“You can’t put your destiny in something you don’t control. A single statement by a world leader or a crisis in another country can cause oil prices to crash. That’s why we’ve consistently warned that Nigeria must move away from this kind of economic dependence,” he said.

He advocated for a stronger, more transparent tax system that builds trust between government and citizens.

He maintained that when taxpayers see their contributions being used meaningfully to build infrastructure, improve healthcare and education—they are more likely to comply voluntarily.

“Nigerians are good people. If you are transparent with them and they can see that their taxes are making a difference, they will support the system. But when funds are mismanaged or wasted, it erodes public trust,” he said.

He further stated that developed countries with high standards of living, such as Sweden, are not necessarily rich in natural resources but have achieved prosperity through responsible taxation and efficient public service delivery.

Addressing issues around tax collection and accountability, the CITN president commended the Federal Inland Revenue Service (FIRS) for directing commercial banks to close unauthorised tax accounts.

He described the move as a step towards curbing leakages and enforcing proper oversight. He reiterated that revenue authorities must remain focused on their core mandates: assessment, collection, and accountability.

Agbeluyi also called for enforcement of sanctions to deter tax-related misconduct, noting that a lack of consequences for infractions encourages impunity.

On the forthcoming annual tax conference, Agbeluyi said the institute is fully prepared to host a hybrid event with both physical and virtual participation, allowing for broader reach, especially to members in the diaspora. The conference is expected to attract over 5,000 participants.

He explained that the event will begin with a hospitality night showcasing Nigeria’s cultural heritage and promoting networking across disciplines. This will be followed by technical sessions anchored by experts from various sectors, and a sports carnival to encourage interaction among delegates. The conference will close with a gala night featuring entertainment, music, and social engagement.