Informal taxation organised by traditional authorities and community groups has long played a central role in financing local public goods and services in many Nigerian communities. Despite the importance of informal taxation, there has been relatively little research into how it is organised and whether and how it embodies accountability.
This study addresses these gaps. It offers new insights into non-statutory accountability mechanisms. It explores how informal taxation operates and how accountability is understood and practiced in informal taxation systems administered by traditional leaders and local elites in two areas in Kaduna State, Nigeria. There are significant differences associated with differences in traditional governance structures and religion. In Zaria, informal taxation is embedded within the emirate system and influenced by Islamic norms; in Chikun, taxation is administered through chiefdom structures and largely Christian communities.
This study involved 103 interviews with local traditional leaders, elites, and community representatives. Three key indicators – transparency, answerability, and responsiveness – are used to conceptualise and measure accountability in informal taxation and governance. The study explores how local governance and religious contexts shape accountability systems and public trust in informal taxation in places with few formal governance structures.
“There is no one-size-fits-all accountability: it is shaped by religious and historical legacies and cultural contexts. These context-specific accountability systems enhance the legitimacy of informal taxation and contribute to community-driven development.”
