The Managing Director of Babcock Investment Group, Professor Johnson Egwakhe, has cautioned that Nigeria risks driving away investors and discouraging entrepreneurship if taxation continues to be applied as a punitive measure rather than as a catalyst for national development.
Speaking at the investiture ceremony of Prince Lawrence Adewale Adetona as the 10th Chairman of the Abeokuta and District Society of the Chartered Institute of Taxation of Nigeria (CITN), Prof. Egwakhe emphasized that taxation should serve as an instrument for economic growth, not as a weapon against businesses.
“Tax becomes a burden when it is weaponised,” he declared, noting that arbitrary tax policies and multiple levies imposed on small and medium-scale enterprises (SMEs) have weakened the capacity of entrepreneurs to thrive and innovate. According to him, when taxes are perceived as unfair or unpredictable, compliance drops and the business climate becomes hostile to investors.
He urged the Federal Government to prioritize tax reforms that encourage productivity, promote equity, and foster job creation, rather than those that deepen financial strain on struggling businesses.
In his remarks, the newly inaugurated CITN Chairman, Prince Adetona, outlined his three-point agenda, which includes the launch of the Tax Education for National Development Initiative (TENDI), revival of the district journal, and commencement of a new district secretariat project. He pledged to enhance public sensitization on tax matters, especially ahead of the new tax laws expected to take effect on January 1, 2026.
Adetona further stressed that taxation, when properly structured, can serve as a foundation for sustainable development and nation-building.
Observers believe Egwakhe’s warning comes at a crucial time when businesses across Nigeria are grappling with high inflation, energy costs, and inconsistent fiscal policies, underscoring the urgent need for a more balanced and transparent taxation framework.