Introduction
The relationship between law, morality, and the duty of the citizen to obey is a central concern of legal philosophy. In Nigeria, the tax regime forms a critical part of the state's legal and economic infrastructure, yet it is characterised by significant challenges, including widespread evasion and a general lack of public trust (Appah and Obaro, 2021). While legal positivism would assert that tax laws are binding simply because they have been validly enacted by the legislature, natural law theory offers a different and more critical lens. Natural law posits that the authority of man-made law is rooted in its conformity with higher moral principles. This essay will apply the theoretical framework of natural law to the Nigerian tax regime. It will argue that from a naturalist perspective, the legitimacy and moral authority of Nigeria's tax laws are undermined by a perceived failure to serve the common good, a lack of distributive justice, and systemic corruption. Consequently, while tax laws are positively valid, their weak moral foundation helps to explain the poor compliance and civic resistance they encounter.
The Core Principles of Natural Law
Natural law theory is one of the oldest and most enduring schools of jurisprudence, with its origins in classical Greek philosophy and its most famous articulation by St. Thomas Aquinas. The fundamental tenet of natural law is that there exists a higher, universal moral code that is accessible through human reason. This moral code provides the standard against which the validity of positive, or man-made, law should be judged. The famous maxim, lex injusta non est lex (an unjust law is no law at all), encapsulates this core idea, suggesting that laws which fundamentally violate principles of justice and morality lack true legal character and do not bind the conscience of citizens (Bix, 2012).
For Aquinas, a law is only just and valid if it meets certain criteria. He argued that law must be an ordinance of reason, for the common good, made by one who has care of the community, and promulgated (Aquinas, 1947). The "common good" is a particularly important concept, referring to the conditions that enable all members of a community to flourish. A law that serves only the interests of a ruling elite or a select group, rather than the entire community, fails this test.
Modern natural law theorists, such as John Finnis, have updated these ideas. Finnis (1980) moves away from a direct link to divine law, instead identifying seven 'basic goods' (such as life, knowledge, and play) which are self-evidently desirable for human flourishing. He argues that law's purpose is to create a stable community where individuals can pursue these basic goods. Therefore, laws, including tax laws, are morally justified to the extent that they help to secure the common good by providing the necessary public infrastructure and services that allow people to thrive. If a legal system, including its tax regime, functions in a way that actively frustrates the pursuit of these basic goods for the majority, a natural lawyer would argue its moral authority is severely weakened.
The Nigerian Tax Regime in Context
The Nigerian tax system is based on a framework of positive laws enacted by the National Assembly and State Houses of Assembly. Key federal legislation includes the Personal Income Tax Act 2011 (as amended), the Companies Income Tax Act 2004, and the Value Added Tax Act 1993. From a purely positivist standpoint, as articulated by jurists like John Austin, these laws are valid commands of the sovereign (the Nigerian state) and carry an obligation of obedience backed by sanctions. The legal duty to pay tax arises from the fact that the laws have been passed through the constitutionally prescribed procedures, regardless of their moral content or social impact.
However, the reality of the Nigerian tax system is complex. The country has one of the lowest tax-to-GDP ratios in the world, estimated at around 6% in 2019, far below the African average (Oxfam International, 2019). This is not solely due to a narrow tax base, but also to high levels of tax evasion and avoidance. There is a widespread perception among the Nigerian populace that the government is corrupt and that tax revenues are not used for public benefit but are instead embezzled by public officials. This disconnect between the legal duty to pay tax and the perceived moral failings of the state provides a fertile ground for a natural law analysis.
A Natural Law Analysis of the Nigerian Tax Regime
Applying the principles of natural law theory to the Nigerian tax regime reveals significant tensions between the positive law on the books and the moral conditions required for its legitimacy.
The Common Good
The primary moral justification for taxation from a natural law perspective is that it is a mechanism for promoting the common good. Citizens contribute a portion of their wealth to the state, which in turn is expected to provide essential services like security, healthcare, education, and infrastructure that benefit all. However, in Nigeria, there is a profound 'crisis of legitimacy' regarding the use of public funds (Ogbuehi and Obaro, 2021). Decades of systemic corruption have created a deeply ingrained public belief that tax revenues are more likely to be misappropriated than used for their intended purpose.
When citizens see dilapidated schools, underfunded hospitals, and impassable roads, the government's demand for tax contributions appears not as a rational ordinance for the common good, but as an extractive and unjust imposition. From a naturalist viewpoint, if the state fails to hold up its end of the social contract by not applying revenues for public welfare, the moral obligation of the citizen to contribute is correspondingly weakened. This does not necessarily justify illegal tax evasion, as Finnis (1980) would argue that even an unjust law should often be obeyed to avoid the greater evil of societal breakdown. Nevertheless, it explains the low 'tax morale' in Nigeria, where non-compliance is seen by many not as a legal failing but as a rational response to a dysfunctional and untrustworthy state.
Justice and Fairness
A second pillar of natural law is the principle of justice, particularly distributive justice, which concerns the fair allocation of burdens and benefits in a society. A just tax system should be equitable, meaning it should be structured according to a person's ability to pay. Progressive tax systems, where higher earners pay a larger percentage of their income in tax, are generally seen as more aligned with this principle.
The Nigerian tax system, while progressive on paper, is often regressive in practice. Oxfam International (2019) reports that a combination of tax incentives and loopholes for large corporations, along with a heavy reliance on indirect taxes like VAT which disproportionately affect the poor, creates a system where the burden falls heavily on ordinary citizens and small businesses. Meanwhile, wealthy individuals and multinational corporations are often able to exploit the system to pay very little tax. A natural lawyer would argue that such a system is fundamentally unjust. By failing the test of fairness, the tax law loses its moral claim to authority. It ceases to be a tool for achieving a just society and instead becomes an instrument that reinforces social and economic inequality, thereby violating the principles that should underpin a just legal order.
Law and Citizen Compliance
The practical consequence of a tax system that is perceived as unjust and not serving the common good is a deterioration in voluntary compliance. Natural law theory suggests that law works best when it aligns with the internal morality of the citizens, creating a feeling of obligation to obey. Where the law is seen as purely coercive and morally bankrupt, the state must rely on ever-increasing threats and sanctions to achieve compliance, which is often inefficient and breeds further resentment. As noted by Odd-Helge Fjeldstad, a leading scholar on taxation in Africa, trust in government is a key determinant of tax compliance (Fjeldstad, 2004). The natural law framework provides the philosophical underpinning for this empirical finding. The lack of trust in the Nigerian government can be understood as a popular judgement that the state's exercise of its legal powers, particularly in taxation, does not meet the basic moral requirements of lawfulness.
Conclusion
In conclusion, while Nigeria’s tax laws are undoubtedly valid from a positivist perspective, the theoretical framework of natural law provides a powerful critique of their moral authority and practical effectiveness. The theory highlights that the legitimacy of a tax regime is not derived solely from its legal enactment but from its alignment with enduring principles of justice, fairness, and the common good. In the Nigerian context, systemic corruption, the manifest failure to translate tax revenues into public services, and the inequitable distribution of the tax burden all serve to sever the connection between the law and its moral foundation. A naturalist analysis suggests that the widespread tax evasion and low compliance in Nigeria are not merely problems of enforcement, but symptoms of a deeper moral and political crisis. Therefore, for the Nigerian state to build a truly effective and legitimate tax regime, it must move beyond legal coercion and focus on restoring public trust by demonstrating a genuine and visible commitment to using public funds for the common good of all its citizens.
References
Appah, E. and Obaro, O.G. (2021) ‘Tax Evasion and Avoidance in Nigeria: The Bane of Economic Growth and Development’, International Journal of Research and Innovation in Social Science, 5(8), pp. 320-330.
Aquinas, T. (1947) Summa Theologica. Translated by Fathers of the English Dominican Province. Benziger Bros.
Bix, B. H. (2012) Jurisprudence: Theory and Context. 6th edn. Sweet & Maxwell.
Companies Income Tax Act 2004, Cap C21, LFN 2004.
Finnis, J. (1980) Natural Law and Natural Rights. Clarendon Press.
Fjeldstad, O.H. (2004) 'What's trust got to do with it? Non-payment of service charges in local authorities in South Africa', The Journal of Modern African Studies, 42(4), pp. 539-562.
Ogbuehi, D.I., and Obaro, O.G. (2021) ‘Corruption and Tax Administration in Nigeria’, International Journal of Innovative Social Sciences & Humanities Research, 9(3), pp. 1-13.
Oxfam International. (2019) Nigeria: Commitment to Reducing Inequality Index 2019. [Online]. Available at: https://www.oxfam.org/en/research/nigeria-commitment-reducing-inequality-index-2019 (Accessed: 15 May 2024).
Personal Income Tax Act 2011, Cap P8, LFN 2004 (as amended).
Value Added Tax Act 1993, Cap V1, LFN 2004.
