The Christian Association of Nigeria (CAN) has voiced its concerns over recent tax reforms introduced by Abia State Governor Alex Otti, which include what many are calling a “signpost tax” on churches.
While the Otti administration’s reforms aim to streamline the state’s tax collection through a newly introduced digital system, religious institutions have raised objections, stating that the reforms could place undue financial strain on them.
The reforms, which include the digitalisation of tax collection, have been largely focused on traders, transporters, and businesses, as part of Otti’s broader strategy to enhance internally generated revenue (IGR) for the state.
The Otti administration has already implemented a system designed to eliminate fraud and intermediaries in revenue collection, especially targeting commercial activities.
According to Governor Otti these measures will allow for better infrastructure development and improved services in the state, benefiting all sectors of society, including healthcare and education.
However, CAN officials claim that the reforms, particularly the so-called “signpost tax,” which would require churches to pay levies for signboards and advertisements, are inappropriate and could hinder the work of religious organizations.
Church leaders argue that such taxes would place a burden on their operations, making it difficult for them to provide services to their congregations and the wider community.
Despite these concerns, the Otti administration insists that the tax reforms are necessary to bolster the state’s economic stability and development.
The governor has reassured that the digital system will make tax compliance simpler and more transparent, while also helping to combat tax evasion.
Meanwhile, religious leaders are reportedly planning to engage with the government in dialogue, seeking ways to mitigate the impact of the new tax system on churches and other religious bodies.
This development is part of Otti’s broader economic plan to revitalise Abia State, with a focus on eliminating leakages in revenue and encouraging investment by providing a more structured and formal business environment.
