Ade Shotade is a banker who lives in the Okota area of Lagos. He is the eldest of five siblings and is responsible for supporting his family financially. Ade has been shouldering this responsibility for many years, but the burden of supporting his family is starting to have a serious impact on his finances.

“My parents are hardworking but struggling, and had invested all they had in my education, hoping I would be the beacon that would lift the family out of poverty,” Ade noted.

He mentioned that as he climbed the corporate ladder, he discovered the bitter truth that success comes at a cost.

“The burden of supporting my family grew heavier with each rung I ascended. I found myself trapped in a cycle of obligation, shackled by the expectations of his siblings and the sacrifices of his parents,” he told our correspondent.

Shotade narrated that his first paycheck marked the beginning of what Nigerians called the Black tax, the unspoken responsibility of successful individuals to financially support their less fortunate relatives.

According to Investopedia, the Black tax refers to the financial burden borne by Black people who have achieved a level of success and who provide support to less financially secure family members.

Shotade said his salary, meant to secure his future and achieve his aspirations, became a lifeline for his family.

He said, “The demands were relentless. My younger brother, Oluwole, aspired to be a doctor; I had to fund Oluwole’s medical school. I had to postpone my dreams. Being the firstborn and a responsible elder brother, I couldn’t refuse to assist despite knowing the strain it put on my finances.

“The weight of familial obligations pressed down and overwhelmed me, a burden that threatened to crush his aspirations. I dreamt of starting a business by the side. A venture that would help to secure my immediate family’s future and provide a legacy for generations to come. However, the dream remained elusive, overshadowed by the demands of black tax majorly from my family members,” he noted.

He said that as the years passed, his once vibrant spirit began to wither while acknowledging the stress of his financial responsibilities strained his relationships.

Shotade noted that the weight of his family’s expectations became a constant companion, haunting his every waking moment.

“There were some months I could not save anything tangible because apart from regular demands from my family, I  also have multiple bills and obligations to be met, especially with the hike in prices of daily living,” he lamented.

“One day, after a gruelling week at the bank, I received a call that would change everything. My youngest sister, Amarachi, had been accepted into the university while my other brother whom I was sponsoring was still in medical school.

“The elation in her voice was infectious, but for me, it was accompanied by a sinking feeling in the pit of my stomach,” he narrated.

The funding of the tertiary education of another sibling would be burdensome and stretch him to his financial limit, he thought. But the conflict within him raged. The desire to see his sister succeed battled against the reality of his dreams slipping further away.

“My sister also had to get accommodation, school fees, and upkeep money every month in addition to family needs by the side,” he worried.

But amid sacrifice, he said a spark of resilience ignited within him. Shotade realised that true success wasn’t solely measured by financial achievements but by the impact one had on the lives of others. With newfound determination, he decided to face the challenges head-on.

Shotade began to mentor his siblings, imparting not just financial support but also the knowledge and skills needed to navigate the world independently.

According to Shotade, he encouraged them to learn a skill to also earn extra income.

“As time passed, a noticeable change occurred in the dynamics within my family. My siblings, empowered by education and guidance, gradually embarked on their journeys toward success at a gradual pace,” he noted.

However, he said the weight of the black tax had also ruined so many breadwinners, especially those who had extremely large families, who had sacrificed a lot and were still not appreciated for their efforts throughout the years.

The Black tax has become a part of the Nigerian system. Coined to depict the financial obligations individuals shoulder for their extended families, the Black tax has evolved into a pervasive influence that moulds Nigeria’s socio-economic terrain.

In Nigeria, where over 90 million people live below the national poverty line, according to data from the National Bureau of Statistics.

Individuals with higher incomes often experience pressure to aid relatives who are grappling with financial difficulties.

However, to understand the impact of black tax on Nigerians, it is essential to trace its origins.

The concept is traceable to the communal nature of Nigerian societies, where the extended family holds immense significance.

In a cultural context, the idea of communal responsibility has deep roots, with families viewing success as a collective achievement. This communal ethos, while fostering a sense of unity and shared identity, has also given rise to the practice of Black tax.

Originally, the Black tax was not perceived as a hardship; instead, it embodied a communal responsibility wherein individuals contributed to the entire family’s well-being.

However, with Nigeria undergoing socioeconomic changes like urbanisation and enhanced educational opportunities, the dynamics of the Black tax shifted.

 It started to impose substantial strain on individuals and families, impacting their financial stability and impeding economic progress.

Many Nigerians find themselves allocating a substantial portion of their income to support extended family members, covering expenses such as education, healthcare, and basic living costs. This financial strain can hinder personal savings, limit investment opportunities, and impede economic mobility.

Education, which is often seen as a pathway to socioeconomic advancement, is a sector significantly influenced by the Black tax.

While individuals strive to secure a brighter future through education, the financial responsibilities placed on them often result in compromises. Students may face challenges in accessing quality education, limiting their potential to break the cycle of poverty.

Consequently, the enduring influence of the black tax on education has the potential to sustain socioeconomic inequalities over successive generations.

Speaking in an exclusive interview with , the President of the Association of Senior Staff of Banks, Insurance and Financial Institutions, Olusoji Oluwole, said, “First, we must understand that we come from a side of the world that culturally and religiously we feel obligated to financially support family, friends and communities. However, that sense of obligation has unconsciously turned to a sense of entitlement that has impacted negatively on people financially and on relationships.”

 Oluwole noted that indeed the weight was unseen but only to the beneficiaries, adding that the benefactors and their immediate families were the ones who felt the weight financially and emotionally.

 “In many instances, these black taxes have become social levellers with the payers being forced to struggle to survive in the short and long term due to their inability to prepare for life after work,” he added.

He stressed that to tackle this problem; people must set their priorities with great emphasis on their immediate families.

Oluwole mentioned that budgeting was an excellent way to manage the situation and must be strictly adhered to without any sentiments.

Also, rather than thinking of how to care for several people, they should think of empowering a few who can eventually do the same to others and reduce the burden, he counselled.

Also, the Chief Executive Officer of Adoj Limited, Mr Abiodun Adetutu, said Black tax refers to the financial responsibility that individuals within their communities often have towards their families and others.

According to him, it is common in Nigeria and some African countries.

He said due to the nature of the Black tax, it could be addressed through different ways to reduce the burden, especially on breadwinners of families.

He underscored the significance of providing financial literacy education within communities.

According to Adetutu, this involves instructing individuals on effective financial management, encompassing budgeting, saving, and investing.

He noted that such knowledge empowers individuals to make well-informed decisions regarding their financial responsibilities.

 “Changing cultural expectations around financial responsibility within families is a gradual process. Experts suggest promoting a cultural shift that encourages individual financial independence while still valuing and supporting family bonds.

 “Entrepreneurship and economic empowerment can help individuals generate additional income, making it easier for them to support themselves and their families. Government initiatives and programmes that promote entrepreneurship, especially in disadvantaged communities, can play a crucial role,” he explained.

According to a financial analyst, Gbemisola Joel, it is crucial to have a financial safety net in place to effectively handle unexpected expenses without compromising one’s ability to fulfil family obligations.

“This not only serves as a protective measure for unforeseen circumstances but also safeguards long-term financial aspirations such as education, homeownership, and retirement,” she stated.

She further highlighted the aspect of encouragement of financial independence within the family. “Supporting family members in their efforts to develop skills and enhance their earning potential can alleviate the enduring financial burden. Fostering education and professional growth empowers family members to contribute positively to their overall financial well-being,” she admonished.

In the same vein, a financial expert, Mr Tuyor Otunbanjo, said in addressing the issue of Black tax, especially in Nigeria, people should build and maintain an emergency fund.

He said, “Having a financial cushion can help you navigate unexpected expenses without compromising your ability to meet your black tax obligations.”

According to Otunbanjo, establishing a clear understanding of an individual’s income, expenses, and financial goals is important.

He stressed the need to develop a budget that prioritises an individual’s essential needs, savings, and black tax obligations.

 “Define clear boundaries on what you can and cannot afford to contribute. Be transparent about your financial limitations to avoid unnecessary strain on your finances,” Otunbanjo added.