The Managing Director of Babcock Investment Group, Professor Johnson Egwakhe, has warned that Nigeria risks scaring away investors and discouraging entrepreneurs if taxation continues to be applied as a punitive measure rather than a tool for development.
Egwakhe gave the warning while delivering a lecture at the investiture ceremony of Prince Lawrence Adewale Adetona, as the 10th chairman of the district council.
Speaking on “Entrepreneurship, Tax Reform and Sustainable Economic Development in Nigeria,” the expert dwelt on the implications of poorly designed tax policies for businesses and the economy.
He noted that arbitrary tax hikes have historically triggered a 5% drop in the number of investors, a 10% rise in tax underpayment, and a 20% decline in compliance, stressing that such outcomes weaken economic growth and entrepreneurial drive.
“Tax becomes a burden when it is weaponized,” Egwakhe said. “Lawmakers must understand the public, social, and economic factors that shape tax behaviour. When tax loses its attractiveness, entrepreneurs will not be encouraged.
“The only way a country can grow is through wealth redistribution, and tax is the moral duty we owe government to make that possible.”
The don further urged government to ensure that tax reform has a “human face,” with revenues channelled directly to government coffers, policies designed to eliminate corruption, and protection offered to tax collectors.
Speaking after his investiture, Adetona pledged to prioritize sensitization ahead of the new tax laws scheduled to take effect on January 1, 2026.
He announced three strategic priorities for his administration: the Tax Education of National Development Initiative (TENDI), revival of the district journal, and commencement of the district secretariat project.
“The core task of my administration is to educate the public on their responsibilities under the new tax law and to allay their fears,” he said.
Earlier, the President of the Council, Mr. Innocent Chinyere Shagaya, FCTI, hailed the new chairman and emphasized that the district council remains the “true powerhouse of CITN’s strength, influence and reach.”
He charged Adetona to project the institute’s image, influence fiscal policy, and prioritize members’ welfare.
The ceremony was graced by top CITN officials, past chairmen, royal fathers, and industry stakeholders, including Vice President, Comrade Kate Simon, Mrs. Abolade, Chief Executive; Mrs. Olayomi-Adecoreta Dawodu, FCTI; Mr. Funso Olutayo Abidakun, FCTI; and Engr. Kayode Sote.
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