Kaduna CSOs, Market Associations, Government Officials Advocate Tax-for-Service Agreements

By Uangbaoje Alex, Kaduna

Stakeholders in Kaduna State, including civil society organizations (CSOs), market associations, and government agencies, have called for the implementation of “Tax-for-Service” agreements to improve transparency, service delivery, and tax compliance across the state’s markets.

This was the major outcome of a two-day town hall meeting and capacity-building workshop on Monday, supported by Christian Aid, which brought together key actors to deliberate on how to bridge the gap between taxation and public service provision at the grassroots.

The event, held in Kaduna, aimed to strengthen collaboration between market-based groups and government agencies and enhance understanding of the state’s tax policy framework, especially among informal sector actors.

Speaking at the meeting, Muhammad Adamu, Director of Planning at the Kaduna Ministry for Local Government and Chieftaincy Affairs, emphasized the need to revisit the revenue collection structure at the local government level.

“Once local governments are not involved in revenue collection, they cannot be expected to provide essential market infrastructure like toilets, roads, and greenery,” he said. “Taxpayers need to see value in what they pay.”

Adamu added that the current structure, which centralizes tax collection under the state government, has demotivated many local councils and weakened service delivery.

A Senior Budget Officer, Planning and Budget Commission, Bashir Nuhu, noted that the gathering marks a significant step in strengthening participatory governance, enhancing service delivery, and deepening the social contract between citizens and government. 

“By building capacity and fostering dialogue, we are creating a platform where voices are heard, responsibilities are shared, and progress is made collectively.

“Our goal is simple but powerful: to ensure that taxes paid by citizens translate directly into visible, tangible improvements in their daily lives. Through these agreements, we aim to promote transparency, build trust, and deliver better services—especially in our markets and communities,” he said.

Representing the Chairman, Kaduna State Internal Revenue Service (KADIRS), Richard Bature, Director of Revenue Operations, acknowledged challenges in market revenue collection and reiterated the service’s commitment to people-centered reforms.

“Implementation of the tax law must consider the human aspect. Where market infrastructure is lacking, compliance will remain low. We’re currently reviewing the tax law and believe some of the issues raised here can be addressed through amendments,” Bature said.

Bature noted that KADIRS is already working with local revenue committees and market leaders and hinted that ideas from the workshop would inform broader reforms across the 23 LGAs.

Data presented at the meeting by Simeon Olatunde, Kaduna Coordinator of the Tax Justice and Governance Platform, revealed deep-seated frustrations among traders over the lack of visible public services in return for taxes paid.

“In a 2021 survey, 70% of traders said they would pay taxes more willingly if revenues were visibly reinvested in market improvements like sanitation and security,” Olatunde explained. “We’re here to push for a Tax-for-Service agreement that directly responds to these demands.”

Olatunde also highlighted that most respondents expressed a desire for consistent engagement with the government through town halls and better communication on how taxes are assessed and used.

Sunday Dickson, Clerk of the Kaduna State House of Assembly Committee on Finance, acknowledged the legitimacy of public concerns and affirmed the Assembly’s readiness to work with relevant MDAs to translate outcomes from the meeting into actionable policy.

Organizers hope the initiative will not only improve tax compliance but also boost internally generated revenue (IGR) through increased trust and accountability.

“When people see roads fixed and toilets cleaned, they pay without being forced. That’s the power of participatory taxation,” Olatunde said.