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John Uzoma Ihendinihu, a professor of Accountancy and Taxation, Michael Okpara University of Agriculture, Umudike, has posited that things would continue to degenerate all over the country unless equilibrium is restored in tax administration.
Ihendinihu stated this while delivering the 62nd inaugural lecture of Michael Okpara University of Agriculture entitled “Entropy Of Injustice: A Derivative Of Thermodynamics In Tax Administration”.
He said that injustice could also manifest when there is mismanagement of tax collection.
The don noted that non provision of essential public services with tax revenue amounts to extortion and felonious theft.
Read also: Tax Administration in Nigeria – A review of the 2025 Nigerian tax reform laws
He however said that tax evasion and avoidance tantamount to rubbery of state funds and self.
He stated that in human governance particularly tax administration, entropy means societal disorder resulting from injustice, corruption, evasion, inefficiency, multi taxation leading to economic instability, inequality and public mistrust.
“Tax systems tend towards disorder/entropy leads to tax injustice without interventions. Tax injustice is a systematic inequality with the tax system that leads to tax burdens often being disadvantageous to certain groups while favouring others.
“Tax injustice can also manifest in the misallocation of tax revenue where public funds are not equally distributed to provide essential services to the marginalized populations,” Ihendinihu stated.
He noted that non provision of essential public goods with tax revenue is extortion and felonious theft.
The professor observed that tax rules are ignored or selectively applied, bribery and corruption become routine, tax clearance is bought (not given freely to genuine tax payers) and people no longer believe reforms or promises of change.
He equally noted the multiplicity of taxes on roadside traders, small scale farmers who are compelled to pay multiple levies; market dues, sanitation fees, signage tax, LGA permit, and revenue collection by political thugs, area boys among others.
Ihendinihu posited that unfair tax policies breed resistance and economic instability.
He also proffers that fair taxation and proper revenue management would restore public trust in governments.
Strategic policy actions to reduce tax entropy in Nigeria should be adopted, while institutional reforms, strengthening anti- corruption, measures, combat revenue leakages and enhancing public trust should follow.
He harped on promoting tax prayers, education compliance and strengthening tax administration through technological digital transformation among others.
