Automated Market Makers (AMMs) are a decentralizedDecentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal.
Click to read more → exchangeBusinesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies.
Click to read more → protocol that allows users to trade cryptocurrencies without needing traditional order books.   Instead of relying on buy and sell orders placed by users, AMMs use smart contracts and liquidityLiquidity indicates how easy it is to convert a cryptocurrency into cashCash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term.
Click to read more → quickly — and whether this can be achieved without the assetAssets are the resources that an organization can use to generate revenue or benefit.
Click to read more →’s value suffering.
Click to read more → pools to facilitate trades.   If the term “Virtual Automated Market Makers (vAMMs)” has emerged since my last update, it could refer to an evolution or extension of the AMM concept with additional virtual or programmable features.    These decentralized exchange protocols utilize liquidity pools and algorithms to enable users to trade digitalDigital technologies are these electronic tools that have the ability to generate, store or even process data.
Click to read more → assets directly from their wallets. Popular examples include Uniswap […]
Click to read more →A lot of people in Nigeria complain when they hear the word tax. You hear comments like why am I paying tax when I still buy fuel myself, or why am I paying tax when the roads are still bad, or why am I paying tax when I do not see direct benefit. But tax is not something government invented just to punish people.

Tax is a compulsory financial contribution that every country in the world uses to run society. Without tax, a country cannot operate. Without tax, government cannot function. Without tax, businesses cannot thrive because society will break down.

In Nigeria today, a lot of young people are entering employment through remote jobs, contractIn traditional finance, a contract is a binding agreement between two parties. In cryptocurrencies, smart contracts execute functions on the blockchainA distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies.
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Click to read more → jobs, small businesses, freelancing, online trading and more.

Many people are now earning income through platforms that were not common in the past. Because of this, more people are entering the tax system.

So understanding why we even pay tax in the first place is important. It helps you see the bigger picture beyond just your current deduction.

Here are five major reasons why we pay tax.

One: Tax Helps Government Provide Public Services

Public services are the essential services that everybody in society needs, even if they do not realise it every day. These include hospitals, public schools, military, police, fire service, waste management, public water systems and emergency response.

These services are not free. Nurses do not work for free. Public school teachers do not work for free. Police do not serve for free. Their salaries must come from somewhere.

If government does not collect tax, there is no way to fund these services. That means society becomes unstable. Imagine a Nigeria where there are no public hospitals, or no public secondary schools, or no police response units.

Even the private sector will suffer because private businesses depend on stable public systems to survive. So tax is the foundation that keeps public services running.

Two: Tax Helps Government Build And Maintain Infrastructure

Infrastructure is the physical backbone that supports the economy. Nigeria is a country with over 200 million people. People need to move from place to place, goods need to be transported across regions, businesses need to operate smoothly.

Roads, bridgesA blockchain bridge allows the seamless transfer of data or tokens between two different blockchain projects.
Click to read more →, airports, seaports, drainage systems and public transport systems are all expensive to build. Even maintaining one major expressway runs into billions of naira.

These projects cannot be funded only from oil money. They cannot be financed from loans alone. Tax is one of the key funding sources for infrastructure development. Without tax, the country will struggle to create modern infrastructure.

And when there is no infrastructure, everything becomes more expensive. Transportation becomes costlier. Food prices increase. Business formation becomes harder. Economic growth slows down. So tax is necessary to support infrastructure.

Three: Tax Helps Balance Wealth Distribution

Tax is not only about collecting money. It is actually a way to balance society. Nigeria uses a progressive income tax structure. This means people who earn little pay lower tax and those who earn more pay a higher percentage.

This helps ensure that those who have more contribute more. Without tax, rich people will continue becoming richer while poor people will continue suffering. The gap will widen.

Tax revenue is used to build schools, hospitals, major public systems and sometimes welfare programs that benefit the entire population. Even if Nigeria still has a lot of work to do in terms of welfare, the principle still holds.

Tax helps rechannel money from the wealthiest parts of society to areas that need development. So tax helps promote fairness.

Four: Tax Gives Citizens Power To Demand AccountabilityAccountability is the requirement or readiness to assume responsibility for one's actions.
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When people pay tax, they gain a legitimate voice in government spending. There is a famous historic line no taxation without representation. When citizens pay tax, they now have the right to question how the money is spent.

They have the right to demand project updates. They have the right to review government budgets. They have the right to ask why road projects are delayed. They have the right to push for transparency.

Tax builds responsible citizenship. A society where people refuse to pay tax eventually becomes a society where people cannot question leadership. Because if you did not contribute, you technically do not have moral ground to demand anything. So tax is not only about money. It is also about democratic participation.

Five: Tax Funds Government Operations And Salaries

Government is a large structure. Ministries, departments and agencies all have workers. These workers need salaries. They need transportation.

They need office systems. They need electricity. They need internet. They need communication devices. They need fuel. They need maintenance. They need training. All these cost money. That money comes from tax.

If government does not collect tax, it cannot run. Civil service will collapse. Public agencies will closeRefers to the closing price; similar to the same term used in stock trading.
Click to read more → down. Court system will fail. National operations will freeze. Every nation that functions is powered by tax, including highly developed ones.

Conclusion

Tax payment may not always feel pleasant. We all have personal financial goals. We all wish we could keep all our income to ourselves. But no country in the world has developed without tax.

If we do not contribute to tax, our roads will continue deteriorating, public services will fail, infrastructure will suffer, poverty will increase, inequality will rise and the country will stagnate.

Tax is the financial backbone of every working nation. It funds public systems, supports infrastructure, balances society, gives citizens the right to demand accountability and powers government operations. So paying tax is not a punishment. It is part of building a strong society.