In every society, public policy is one of the most powerful tools for shaping behaviour, allocating resources, and signalling national priorities. However, a growing body of evidence shows that excellent policy design alone is not enough to ensure success. Governments often devote enormous effort to technical formulation while underinvesting in explaining what the policy means, why it matters, and how it will work in practice.
A comprehensive review by the Organisation for Economic Co-operation and Development finds that communication is fundamental to effective governance. In surveys of government communication functions across member countries, most institutions identify raising awareness and understanding of public programmes as their primary objective and link this directly to policy compliance and public trust. Where communication is weak, public confusion increases, and trust erodes.
This pattern is visible across high-income and emerging economies alike. In contexts where scepticism toward government is already high, the consequences of poor communication are especially serious. In Nigeria, for example, the tax-to-GDP ratio is estimated to be among the lowest in the world according to international economic reporting. Low tax engagement reflects not only economic conditions but long-standing gaps in public understanding of obligations and benefits.
It is against this backdrop that Nigeria’s recent Tax Act, signed in 2025 and effective from January 2026, provides a revealing case study. The Act represents a major overhaul of the country’s fiscal framework, consolidating multiple statutes into a unified regime aimed at modernising administration, widening the tax base, and improving compliance, according to professional analyses of the legislation. On paper, it aligns fiscal policy with long-term growth objectives.
Yet the journey from legislative text to lived reality highlights a familiar truth. Sound policy does not succeed on paper alone. It succeeds in people’s minds. Without a clear explanation of what is changing, who is affected, why those changes were made, and how success will be measured, well-meaning reforms risk being perceived as opaque, punitive, or disconnected from everyday experience. The real test of reform is not simply policy design. It is the ability to communicate meaningfully with the citizens and institutions that must implement and live with it.
The Strategic Intent of the Nigerian Tax Act 2026
At a strategic level, the Nigerian Tax Act 2026 is designed to address long-standing weaknesses in the governance, administration, and interpretation of taxation in Nigeria. Its focus is not on broad economic transformation, but on strengthening the foundations of the tax system so that it functions more predictably and credibly.
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Strengthening Revenue Reliability
The Act seeks to improve the reliability of non-oil tax revenues through better administration rather than economic diversification. By consolidating tax statutes and clarifying compliance rules, it aims to reduce inefficiencies and leakages that undermine revenue consistency. The strategic intent is to make tax collection more predictable and dependable as a source of funding for public services.
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Improving Statutory Clarity and Administrative Coherence
A central objective of the Act is to reduce fragmentation within the tax system. It brings together previously dispersed provisions and clarifies the roles and responsibilities of tax authorities. For individuals, SMEs, and informal sector operators, this is intended to reduce uncertainty, overlapping demands, and conflicting interpretations that have historically discouraged compliance.
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Promoting Fairness Through Standardisation
Rather than explicitly redistributing the tax burden, the Act approaches fairness through clearer rules and consistent enforcement. Standardising definitions, procedures, and compliance expectations limits discretionary application and uneven treatment. Equity is therefore positioned as an outcome of predictability and uniformity, not as a direct policy lever.
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Aligning Tax Governance With Global Best Practices
The Act also moves Nigeria closer to widely accepted principles of modern tax governance. This alignment is reflected in greater transparency, clearer obligations, and improved administrative predictability. While it does not introduce complex cross-border or digital tax regimes, it strengthens the institutional signals that matter for investor confidence and international credibility.
On paper, the logic is sound. The challenge lies not in what the policy intends to achieve, but in how clearly that intent is communicated to the citizens and businesses expected to comply with it.
The Policy Communication Gap
Despite its strategic intent, early reactions to the Nigerian Tax Act 2026 revealed significant communication gaps, gaps that risked undermining trust, compliance, and public buy-in.
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Technical Language, Limited Translation
The Act was largely communicated in legal and fiscal terminology, accessible to professionals but opaque to the average taxpayer. For many Nigerians, particularly SMEs, informal workers, and first-time taxpayers, the policy felt like a locked room without a key.
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Reactive, Not Proactive Engagement
Initial communication leaned heavily on official publications and post-enactment announcements. Stakeholders often encountered the policy only when compliance became mandatory, creating resistance rather than readiness.
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One-Way Messaging
The communication approach largely assumed that information dissemination equalled understanding. There was a limited opportunity for dialogue, feedback, or clarification, which are critical elements in building legitimacy.
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Insufficient Differentiation of Audiences
A multinational corporation, a market trader, and a tech startup do not interpret policy through the same lens. Yet early communication did not sufficiently segment messages based on taxpayer realities.
Evidence from other countries shows why these gaps matter. In Estonia and Rwanda, tax reforms succeeded not because the laws were technically strong, but because citizens were engaged, messages were tailored to different audiences, and understanding came before compliance. Nigeria’s early experience with the Tax Act 2026 illustrates the opposite: without clear, accessible, and audience-sensitive communication, even well-designed policies struggle to gain trust and acceptance.
Corrective Measures: Closing the Communication Gap
Recognising these challenges, steps were taken to recalibrate the communication strategy around the Nigerian Tax Act 2026, signalling an important institutional learning curve.
- Simplified Explanatory Materials: Regulatory agencies introduced plain-language guides, FAQs, and summaries designed to translate legal provisions into practical implications. This shift from “policy speak” to “people speak” was a critical first step.
- Stakeholder Engagement Forums: Targeted engagements with professional bodies, business associations, tax practitioners, and sub-national governments helped surface concerns and clarify grey areas. These forums transformed communication from broadcast to conversation.
- Digital and Media Outreach: Leveraging digital platforms, radio, and mainstream media expanded reach beyond traditional policy circles, meeting citizens where they already consume information.
- Capacity Building for Implementers: Training frontline tax officials ensured that those interpreting the policy for citizens delivered consistent, accurate messages, and often overlooked but vital element of policy credibility.
These measures did not eliminate all friction, but they significantly narrowed the gap between intent and interpretation.
Lessons and Recommendations for Future Policy Implementation
The Nigerian Tax Act 2026 offers broader lessons for policymakers; lessons that extend beyond taxation and resonate across governance systems globally.
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Design Communication Alongside Policy, Not After
Communication should be embedded from the policy design stage, not appended at implementation. Every clause should have a corresponding narrative: What does this mean for me?
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Segment Before You Speak
Policies must speak differently to different audiences. Tailored messaging increases comprehension, compliance, and trust.
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Make Dialogue a Feature, Not a Footnote
Feedback loops, town halls, digital consultations, and stakeholder clinics should be institutionalised rather than episodic.
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Measure Understanding, Not Just Awareness
Success metrics should move beyond “reach” to assess comprehension, sentiment, and behavioural change.
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Invest in Policy Translators
Between lawmakers and citizens lies a critical role – professionals who can translate complexity into clarity. Governments that invest in this capability gain long-term legitimacy.
The Nigerian Tax Act 2026 reminds us that policy is not merely an instrument of governance; it is a conversation with the nation. When communication is clear, inclusive, and empathetic, policy becomes a shared journey rather than an imposed directive.
In an era of heightened public scrutiny and economic pressure, governments cannot afford silent policies. Because in the end, a policy that is not understood is a policy that is not implemented.
The future of effective governance, in Nigeria and beyond, will belong to those who understand one simple truth: policy does not end when the law is passed; it begins when people understand it.
Written by:
Sola Turner