Senior Advocate of Nigeria (SAN) and human rights activist, Femi Falana, has strongly criticized Nigeria’s tax regime, particularly targeting exemptions that allow certain private companies to operate without paying taxes to state and federal governments.
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Speaking during a media interview with Symfoni TV at 7:13, Falana condemned the preferential treatment given to businesses in free economic zones, stating, “Many of those who donated last week operate in a place they call a free economic zone. And in that zone, we are not bound by the tax laws of Nigeria. In other words, they are exempted from paying federal, state, and local government taxes.”
He further emphasized the extensive privileges granted to these businesses, pointing out that their imports are duty-free, which he described as an unjust advantage over other enterprises operating outside such zones.
The senior lawyer denounced the legal framework supporting these exemptions, arguing that they are unconstitutional, discriminatory, and illegal. “I have made the point repeatedly that this law is illegal, discriminatory, and unconstitutional,” he stated.
Citing specific examples, Falana questioned the fairness of Nigeria’s tax policies, highlighting the case of an individual with a factory worth over $20 billion who does not pay taxes. “What kind of taxation regime is that? All the things imported by him are duty-free,” he lamented.
Falana insisted that these practices violate Nigeria’s legal framework, referencing Section 42 of the Nigerian Constitution and Article 2 of the African Charter on Human and People’s Rights. He called for meaningful tax reform but acknowledged that implementing such changes would require “stepping on the toes of some people whom he considers as dangerous Nigerians.”
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