Black tax reportedly originated in South Africa and refers to money that Black workers, especially professionals and other higher income earners, give to their parents, siblings, or other family members, often out of obligation or a deeply ingrained sense of family responsibility. In Nigeria, the concept describes the monetary assistance or gifts that working people give to their families frequently to meet necessities including daily living costs, healthcare, education and so on. TOSIN KOLADE writes
Lola, a 31 year-old marketing professional in Lagos, has a well-paying job but struggles to save money. Each month, a significant portion of her salary goes toward supporting her younger siblings’ education, her parents’ medical bills, and the upkeep of few unemployed friends and acquaintances. While Lola is proud to help, the financial strain is taking a toll on her well-being. She’s unable to build her savings, invest in property, or enjoy the little luxuries she works hard for.
“I feel stuck. I want to save for my future, maybe start a business or buy land for a home, but every time I try, another family emergency needs funding”.
Lola’s situation is common among many young Nigerians who carry the weight of Black Tax. Tunde, a 35-year-old engineer resident in Abuja, dreamt of pursuing further studies abroad to advance his career. He was accepted into a prestigious programme in the UK but the financial demands of `black tax` put those dreams on hold.
As the eldest son, Tunde has always felt a deep responsibility to support his family. His father passed away when he was in secondary school, leaving his mother to care for his three younger siblings. Now, with a steady job, Tunde covers their school fees, helps with household expenses, and contributes to the extended family’s needs back in the village.
“I know what I’m doing is important, but sometimes I feel like my dreams are slipping away. The cost of supporting my immediate family means I can’t afford the tuition fees or living expenses needed to study abroad.
“I want to do more with my career, but every time I get close to saving enough, something comes up; a hospital bill or a debt that needs paying. It’s frustrating because I know I’m capable of more, but I’m stuck in this cycle”.
For Amaka, a 32-year-old lawyer in Enugu, Black Tax is more of a blessing than a burden. Growing up in a modest household, she understands firsthand the challenges her parents faced to provide for her and her siblings. Now that she has a successful career, Amaka feels a sense of gratitude and responsibility to give back.
“Everything I am today is because of the sacrifices my family made. My parents worked so hard, often going without so we could have a better future. Now that I’m in a position to help, it feels like a privilege, not a duty”.
Amaka regularly sends money home to support her parents and contribute to her younger brother’s university education. She also helps her extended family, ensuring that her cousins can afford school fees and her elderly aunt receives proper medical care. For Amaka, the rewards of black tax go beyond financial support.
“When I see my brother excel in school or hear that my cousin got a scholarship, I feel so proud. It’s like I’m helping to rewrite our family’s story, one step at a time”. She believes that Black Tax is about more than just money—it’s about community and shared success.
the black tax phenomenon is common in many African and Caribbean communities, where those who achieve financial stability are expected to assist their less fortunate relatives
“We rise by lifting others. It’s not always easy, and there are sacrifices, but the joy of seeing my family thrive makes it all worth it”. While Amaka views black tax as an expression of love and gratitude, Lola and Tunde believe it places them under financial strain and overwhelming pressure.
The concept of Black Tax
The concept of black tax’ refers to the financial support that black professionals often provide to their extended families, typically as a result of economic disparities and historical inequalities. This phenomenon is common in many African and Caribbean communities, where those who achieve financial stability are expected to assist their less fortunate relatives.
According to the World Bank, 30 per cent of Nigerians over the age of 15 pay domestic remittances, often known as black tax, as of 2021, which is 9 per cent less than 2014.
Over four in five Nigerians earning an income pay black tax, according to the 2023 Piggyvest Savings Report of 2023. The report is based on a survey conducted from April 11 to May 30, 2023, involving thousands of Nigerians across various ages, genders, and income brackets, focusing on their saving and spending habits.
Of the 80 per cent of Nigerians income earners who pay black tax, 56 per cent pay it monthly, 27 per cent pay occasionally. Only 17 per cent do not pay black tax at all. Analysts believe that there can be overwhelming expectations, especially for individuals who are just starting their careers or trying to build their own financial security.
While some view black tax as an expression of love and gratitude, others believe it places them under financial strain and overwhelming pressure
The challenge, however, lies in finding a balance between supporting family and securing one’s financial future. Dr. Kunle Adeoye, a financial advisor based in Abuja, encourages individuals to set clear boundaries and prioritise the most urgent needs.
According to him, this might mean contributing to siblings’ education while limiting non-essential expenses like extended family gatherings or luxury items.
“You can’t pour from an empty cup. It’s important to help, but you also have to take care of yourself. I’ve seen too many people burn out because they’re trying to do everything for everyone. Being strategic about where your money goes can make a big difference”.
Chioma Nwankwo, a Human Resources manager in Abuja, stresses the importance of open communication. She noted that by setting realistic expectations and discussing financial limitations, one can avoid misunderstandings and ensure everyone is on the same page.
“I had to have a tough conversation with my parents and siblings. I explained what I could realistically contribute and what was beyond my means. It wasn’t easy, but it was necessary”.
Nwankwo recommends involving family members in financial decisions so they understand the challenges and can offer support in other ways.
Ms. Patience Mamman, an Abuja resident, says the burden of ‘Black Tax’ weighs heavily on many Nigerian households. She says that devising strategies to manage financial obligations is crucial for safeguarding one’s financial stability and mental wellbeing.
You can’t pour from an empty cup. It’s important to help, but you also have to take care of yourself. Being strategic about where your money goes can make a big difference
According to her, adopting practical approaches to handling these responsibilities, such as creating a separate account specifically for family obligations, is imperative.
“One thing that has really helped me is creating a separate account for family obligations. I allocate a fixed percentage of my monthly income to this account. This helps me maintain a clear boundary between my personal financial goals and the support I provide to my immediate family. This way, I know exactly how much I can give without affecting my savings or other financial goals,” she explained.
This method, Mamman notes, not only helps manage expectations from relatives but also ensures financial preparedness for unforeseen expenses.
Stakeholders insist that the challenge of managing black tax in Nigeria underscores the need for a balanced approach, combining generosity with financial discipline.
They argue that by setting clear boundaries, engaging in open conversations with family members, and planning for the long term, many Nigerians can fulfill their family obligations without compromising their financial future. (NANFeatures)
