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Tag: tax reform

  • ‘Tax reform debates not peculiar to Nigeria’

    ‘Tax reform debates not peculiar to Nigeria’

    Senator Abubakar Atiku Bagudu, Minister of Budget and Economic Planning has also raised his voice above the din in the ongoing debates about the propriety or otherwise of the tax reform bill of President Bola Ahmed Tinubu. In this interview with some selected journalists, the erstwhile lawmaker and Kebbi State governor shares interesting insights on the merits of the tax reform even as he espouses its benefits to the socioeconomic development of the country. Nduka Chiejina was there. Excerpts:

    The lingering debates about the tax reform have raised concerns in some quarters that it is targeted at the north. What is your own take on this matter?

    Well, let me just start by saying we have a President, Asiwaju Bola Ahmed Tinubu, who is a very committed Nigerian. He believes in Nigeria. He’s committed to Nigeria. And for him, all parts of Nigeria are equal, and there is no legislation under him, or action that is designed against anyone part of the country. I happen to be the Minister of Budget and Economic Planning. I’m a member of the Presidential Economic Advisory team. I participate in almost all meetings where decisions are taken as to resource allocation, and I see equity. I supervise the budget process. I have seen how allocations are determined and how support is given to each part of Nigeria so that we can do better. We have to recognise that some legislations, by nature, are difficult, even in advanced countries, tax legislation is a very big issue in economic development. It determines elections even in the US. Today, the British economy had a challenge, basically a mini budget that cannot be supported by the tax. Today, the British Prime Minister is facing a challenge because of taxation and debates about taxation. If you recall, historically, even in the 80s, Ronald Reagan, supply side economies, they are all tax issues. Today, Trump is talking about tariffs; in a way that those are all about taxation. So, we are no different but what is happening in Nigeria is that there are laws that have been there for long.  Today, if one looks at one of the tax bills, particularly the one that is, I think, generating the most controversy, is about 247 pages long, a lot of it with definitions, technical jargons that you need guidance in order to understand. Secondly, that legislation repealed about 12 laws that have been in existence. So if you are a small scale businessman or businesswoman or a bank, you need a compliance unit that understands those 12 laws in order not to run afoul of one. Equally, that legislation is amending other 19 laws, as well as revoking laws. So, again, why this controversy? If a legislation is submitted to National Assembly, every part of Nigeria is represented, it could be that I’m from a fishing community, and if somebody say, I want to come, under the river there is diamond mine, and I have been given licence, I have the right to ask, okay, what will happen to my fishing community? I have the right to ask, and that’s why I’m there, and then debate it and say, okay, even if we are doing it for the greater good, how can we accommodate my fishing communities? It’s not a monologue. And even when the Senate said six weeks for a public hearing, we can debate about time. We can debate about arguments. But what is wrong is for us, given the great effort that we are doing to put our economy in the right direction, to be swayed by arguments of tribalism, of religion, of sentimental arguments, the President and indeed his government, is determined that Nigeria will take its pride of place in the comity of nations. We are doing infrastructure work that shows the kind of commitment he has to Nigerians. He is supporting different states in their various quests to develop. He has requested all state governors to give him what can be done more in their states, so that more economic activities can be generated. Some of the reform initiatives, energy transition, for example, are for all parts of Nigeria. Security, additional investment in security is for everyone in Nigeria. I’m just coming out of the Bankers’ Committee meeting. Part of it, they were complaining that they did not like the windfall tax. That’s Nigeria for you. Maybe some Nigerians will say, ah, it’s good that the bankers have been taxed. But we have a president who believes in Nigeria, who is a committed democrat, so he understands that people have the right to debate. But what is annoying is when people, in order to make a point, maybe they take resort to sentiments that can weaken our federation.

    There are talks that this reform will lead to unemployment, especially in the north. What do you have to say about this?

    That is why I told you that the intended benefits of this tax legislation, for example, is to simplify tax compliance for small companies. We have been investing in MSMEs. We have been investing in nano credits. We want them to be the engines of growth. How can they be the engines of growth if you have a wild list of legislations that they don’t even know how to comply with? I met with a European Ambassador recently, so an ambassador from one of the European countries, and he told me that, because of some of our challenges, multiple regulatory challenges. Says he knows of a company in his country, that when they invoice to Cameroon or Ghana, they invoice at least 40% cheaper than when they invoice to Nigeria. So one has to be holistic. We are under pressure that Nigeria maintains a higher level of growth. We want to generate growth. We will not do anything that will sabotage employment generation. Any measure we take is intended to generate major economic activity and growth. That is what we can be, even as politicians, to talk from a self-serving interest, that is what I can get a clap for not the other way around. And indeed, Mr. President is leading that drive.

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    Would you want you to speak to those dissenting voices that say the reform is anti-people? What do you have to tell them?

    We should not get angry at each other, we should complement each other. Like I said, most of you can do the research on your phones. Tax reforms, of course, tax is historical. In 1983 my undergraduate thesis was on tax structure and economic development. How do you develop? How do you design a tax structure that will encourage economic activity? It is still a big debate. It has not been settled, if you check some of the tax reforms in the US, some of them took several years to finish. We are in a hurry to achieve the development we want in Nigeria. So please let us know that I as a Minister of Budget and Economic Planning, I’m one of the most prominent members of the team Asiwaju, if we can call it that, President Tinubu, I am very, very confident that all the measures that have been taken are pleasant and not otherwise, because sometimes when you are confronting your reality, you take measures that may seem tough, but they are taken by a leader who believes in Nigeria, who loves Nigeria, who wants to see a united Nigeria growing and fulfilling the dreams of all Nigerians.

    You are simply saying that those people should not worry, they should allow the process to go through?

    They should participate. Democracy is, how did they get the opportunity to discuss it? It was not a decree that was signed. You discuss, you talk to your representatives, you lobby, you explain, you ask, you interrogate. I have seen many people who have changed their views because of the knowledge they saw. Because when did we start VAT legislation? We started before, it is not a new tax. Yes. So if there is a proposal to review the rate that is debatable and make your inputs, see how it affects you. First and foremost, try to understand it. Don’t just judge, try to understand and like I said, compare it with other countries. In the UK, they have VAT legislation. A significant proportion of the accounting industry is based on VAT reconciliation, because VAT is a top one. A court in Port Harcourt even went as far as saying the Federal Government should not collect VAT but President Bola Tinubu as the leader of the country, say, look, let’s tidy it up. That’s what we want. It’s not a monologue. And we are dealing with a President, God bless him, who is very democratic. He listens to others. He expects people to make contributions. So, whatever legislation it is, let people make reasonable, respectable, proper nationalistic contributions so that we get a better outcome.

  • Southeast Senate caucus to consult on Tax Reform Bills

    Southeast Senate caucus to consult on Tax Reform Bills

    The Southeast caucus of the Senate said yesterday that it was ‘’not against’’ the Tax Reform Bills before the National Assembly.

    The caucus stated that its members had read through the bills and would seek the input of their constituents and critical stakeholders before both arms of the federal legislature held a public hearing on them.

    The caucus leader, Senator Enyinnaya Abaribe, made this known to reporters after a closed-door meeting of his colleagues in his Abuja office.

    Abaribe “In as much as the entire Senators from Southeast are not against the Tax Reform Bills before both chambers of the National Assembly for consideration, we want wider consultations to be carried out on them.

    “Specifically, we need to consult with our constituents across the 15 Senatorial Districts in the zone, with our state governments and other critical stakeholders.

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    “We have read through the bills and want to share our knowledge with other stakeholders from the Southeast zone for a more equitable framework in the bills that would eventually be passed.

    “We are not against the bills but need to consult with our people.” 

    The four  Tax Reforms Bills – Nigeria Tax Bill 2024,  Nigeria Tax Administration Bill 2024, Joint Revenue Board of Nigeria (Establishment) Bill, 2024 and the Nigeria Revenue Service (Establishment) Bill, 2024 –  were sent to the National Assembly for legislative action on October 3.

    Last week, Southsouth caucus of the Senate gave it full support to the Bills.

    NOA engages  stakeholders 

    In Minna, the  National Orientation Agency (NOA)  yesterday engaged stakeholders in Niger State on the tax bills, security, and dangers of the get-rich-quick syndrome.

    NOA  Director-General   Lanre Issa-Onilu said the meeting was to sensitise the people on five critical issues affecting the nation’s unity and development.

    Issa-Onilu,   represented   by   Onuoha Uchenna, assistant director, Finance and Account of the agency, said  the  challenges facing the nation  required ‘’collective action and active participation from all Nigerians.”  

    The NOA boss explained that the government initiated the four tax reform bills to make the tax system fairer and less burdensome for citizens.

  • A balanced approach to Nigeria’s tax reform

    A balanced approach to Nigeria’s tax reform

    • By Adeolu Oyebode

    Sir: No doubt, the proposed Tax Reform Bills represent a significant opportunity to modernise Nigeria’s fiscal framework, enhance revenue generation, and promote equitable economic growth. However, implementing these reforms has raised valid concerns that must be addressed to ensure they achieve their intended goals without disproportionately impacting vulnerable populations or stifling economic activity. The government must adopt a balanced approach that prioritises stakeholder engagement, phased implementation, and transparency to foster public trust and cooperation.

    A major concern is the potential impact of the reforms on state governments and their revenue autonomy. With Nigeria’s federal structure, states must retain control over their fiscal strategies while aligning with a harmonised national tax framework. A fair revenue-sharing formula must be established to ensure that states receive equitable returns from taxes collected within their jurisdictions. This will mitigate fears of over-centralization and reinforce federal-state collaboration.

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    Equally important is addressing the cost-of-living implications for Nigerians. The proposed VAT increase and new excise duties on telecommunications services could lead to higher prices for goods and services, disproportionately affecting low-income households. To cushion these effects, the government must introduce targeted subsidies, and tax exemptions for essential goods, and expand social welfare programs to protect the most vulnerable segments of the population.

    For businesses, especially small and medium enterprises (SMEs), the reforms could increase operational costs, potentially hindering growth and innovation. I urge the government to introduce phased implementation timelines for tax increases, coupled with incentives such as tax credits and grants for SMEs. These measures will help maintain a conducive environment for entrepreneurship and job creation, ensuring that businesses remain competitive in the evolving fiscal landscape.

    Public trust is essential for the success of these reforms. Nigerians need assurance that increased tax revenues will be used effectively to improve infrastructure, healthcare, education, and other critical sectors. To this end, I call for greater transparency and accountability in the management of public funds. The government should publish annual reports detailing tax revenue allocation and expenditure while strengthening independent audit mechanisms to monitor the efficient use of resources.

    Lastly, public awareness campaigns are crucial to dispel misconceptions and build support for the reforms. Citizens and businesses must understand the benefits of these changes and how they contribute to national development. The government has not done enough in policy communication. Clear communication will foster a sense of shared responsibility and collective effort toward achieving sustainable economic growth.

    The concerns of all stakeholders must be addressed for these reforms to fly.

    •Adeolu Oyebode,

    <adeoluoyebode@gmail.com>.

  • Bagudu, Aliyu: why tax reform is transformative

    Bagudu, Aliyu: why tax reform is transformative

    • It’s pro-poor, Akume explains
    • No provision for tax consultants, says Oyedele

    Minister of Budget and Economic Planning Atiku Bagudu has given a strident defence of the Tax Reform Bills before the National Assembly, saying if passed, they will give far-reaching transformation to the economy.

    Also at the weekend, former Niger State Governor Babangida Aliyu, said the bills would help in the development of the country and asked those criticising the bills to study the provisions.

    Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, refuted insinuations that the bills will hand over tax collection to consultants.

    There is no such provision in the bill, he stated.

    Aliyu, who spoke during the graduation of members of the Executive Intelligence Management Course 17 at the National Institute for Security Studies in Abuja, said: “I was speaking to the NSA (Nuhu Ribadu) when we were in the common room, and I said to him, look, many of the people debating the tax bills have not read them.

    “But again, there is the problem of communication; the government should speak more. When the majority of the people are not literate, you should be the first to speak on any major policy, particularly a policy that will bring changes, so that the people can understand.

    “You cannot say because of one person, the policy cannot be taken. So, communication is very, very important.”

    This, according to him, is the best way to douse the ongoing controversy. 

    Bagudu said Nigerians’ involvement in the tax reforms debate would lead to a better understanding of the bills and eliminate the negative views held by those who have not read the proposals.

    He welcomed the opinions so far expressed about the bills, saying they signify a dynamic process of building consensus.

    “These reforms are not a decree; they are open for discussion. You can engage with your representatives, lobby, explain, ask questions, and interrogate. I have seen people change their views after gaining deeper knowledge,” Bagudu said.

    The minister cautioned against letting divisive sentiments like tribalism and religion overshadow the discussions on the tax bills and weaken the federation.

    He said: “We must focus on reasoned debates. The President is determined that Nigeria takes its rightful place among nations.

    “All measures, whether tough or otherwise, are taken with a vision for a united and prosperous Nigeria.

    “We need reasonable, respectable, and nationalistic contributions to shape better legislation. There is no action or law under this administration designed to favour or target any part of the country unfairly.”

    Bagudu lauded the President for his democratic approach to governance, describing him as a leader who values public input.

    He urged Nigerians to analyse proposed tax changes, especially the review of VAT rate and to compare Nigeria’s tax structure with those of other countries.

    “First, try to understand the proposals. Don’t just judge—seek knowledge and context,” he added.

    The minister explained that one of the key goals of the tax reforms.was to simplify compliance, particularly for Small and Medium-size  Enterprises (SMEs).

    “We’ve been investing in MSMEs and nano credits to make them engines of growth. Complex and outdated tax legislation cannot co-exist with this vision,” Bagudu said.

    He pointed out that some tax bills are excessively lengthy and filled with technical jargon, making compliance difficult.

    “One of the bills generating the most controversy is 247- page  long, repealing 12 existing laws, amending 19 others, and revoking some altogether. Small businesses cannot navigate such complexities without expert guidance,” he noted.

    The minister shared an example of how Nigeria’s complex regulatory environment impacts international trade.

    Read Also: Tax reform bills not meant to impoverish north — Akume

    “A European Ambassador recently informed me that companies in his country invoice goods to Ghana or Cameroon at least 40 percent cheaper than to Nigeria due to our multiple regulatory challenges.”

    He called for a holistic approach to reforms to ensure that tax policies support growth, reduce regulatory burdens, and foster employment generation.

    Bagudu also highlighted the Tinubu administration’s ongoing infrastructure and security investments as evidence of its commitment to national development.

    “The President has requested input from governors on projects that can boost economic activities in their states. Energy transition, increased security investments, and support for state initiatives are all part of this strategy,” he said.

    Acknowledging the challenges of implementing tax reforms, Bagudu argued that such measures are essential for long-term growth.

    He added:  “Even in advanced countries, tax legislation is a contentious issue. For us, the focus should be on what these taxes aim to achieve – growth, productivity, and job creation. Every measure we take is intended to drive major economic activity and development.”

    No provision for consultants in tax collection

    Oyedele, in tweets on his X handle, said the bills have no provision permitting the engagement of consultants for tax assessment and collection duties.

    Oyedele’s clarification came amidst public inquiries regarding the scope and implications of the proposed legislative reforms.

    He said: “There is no provision in the tax bills seeking to introduce consultants for tax collection. In fact, Section 19(3) of the Nigeria Revenue Service (Establishment) Bill specifically prohibits the engagement of consultants for the assessment or collection of taxes on behalf of the tax authority.”

    The Nigeria Revenue Service (Establishment) Bill, he said, empowers the Revenue Service to appoint and employ consultants, accountants and other professionals or agents when necessary to support its operations.

    However, Oyedele stressed that their roles are strictly defined.

    He said: “Such consultants shall not carry out the duties of assessment or collection of tax, tax compliance or enforcement activities, or routine responsibilities of tax officials.

    “This ensures that tax administration remains a core function of the government, maintaining accountability and avoiding potential conflicts of interest.

    Responding to questions about Section 69 of the Nigeria Tax Administration Bill, which allows tax authorities to use technology and third-party platforms for tax collection, Oyedele explained that this is not a new concept.

    “The provision currently exists under Section 25 of the FIRS Establishment Act 2007, as amended by the Finance Act of 2021,” he noted.

    The retained provision seeks to enable tax authorities to automate processes and facilitate tax compliance.

    He said: “The necessary applications and payment solutions may be developed by the relevant tax authority or procured from third parties.

    “This is a common practice globally for tax administration, and in principle, it is not different from the way a public or private sector organisation such as banks and online stores use third-party applications for payments.”

    To address concerns about governance and transparency in the use of third-party applications, Oyedele pointed out the inclusion of comprehensive oversight mechanisms in the tax bills.

    “The First Schedule to the Nigeria Revenue Service (Establishment) Bill sets out a governance framework for the activities of the tax authority, including measures to prevent conflicts of interest.

    “Additionally, Section 26 requires the tax authority to submit periodic reports of its activities, including audited accounts, to the Minister of Finance.”

    The minister, in turn, is mandated to present these reports to the Federal Executive Council and the National Assembly. These measures are designed to ensure that the adoption of technology in tax administration is carried out with accountability and efficiency.

    Oyedele noted that these reforms align Nigeria’s tax administration practices with global standards. The deployment of technology for tax administration is expected to improve efficiency, reduce human intervention, and promote seamless interactions between taxpayers and tax authorities.

    The proposed tax bills represent a significant step toward modernising Nigeria’s tax system. By clearly defining the roles of consultants and leveraging technology within a robust governance framework, the reforms aim to enhance transparency, efficiency, and compliance, aligning with international best practices.

    As stakeholders continue to examine the bills, Oyedele’s remarks serve to dispel misconceptions and highlight the government’s commitment to accountability and technological advancement in tax administration.

    Bills not targeted at impoverishing North, says Akume

    The bills are not designed to marginalise the North, the Secretary to the Government of the Federation (SGF) George Akume said yesterday.

    Senator Akume, who spoke during an interview on TVC programme Politics on Sunday, said the intent of the bills were to promote national growth and fiscal sustainability.

    He described the bills as “pro-poor” and “nationalistic,” urging critics to evaluate their purpose rather than politicising them.

    Akume said: “These bills are not targeted at any section of the country. I am from the north, and I am 100 per cent supportive of these bills.

    They followed a normal legislative process, starting from the Federal Executive Council (FEC) to the Attorney-General of the Federation (AGF) and finally to the National Assembly.”

    Highlighting the reforms’ benefits, Akume explained that individuals earning less than ₦800,000 annually and small businesses with revenues below ₦550 million would be exempt from paying taxes.

    He further said sectors such as education and healthcare are exempted from value-added tax (VAT), adding “these provisions show that the bills are designed to support the poor and foster economic growth.”

    Akume criticised the opposition for what he described as a misrepresentation of the bills’ intentions.

    “Many of those arguing against these bills have not even read them. Some are attacking purely from the perspective of opposition politics, aiming to gain support by spreading misinformation,” he said.

    The SGF also noted that the reforms ensure equitable revenue distribution, particularly benefiting northern states and local governments.

    “Under the new arrangement, states will receive 55% of generated revenues, while local governments will get 35 per cent. With more local governments and states in the north, the region stands to gain significantly.”

    Akume urged Nigerians to focus on the bills’ broader objectives of modernising the country’s tax system and enhancing fiscal stability, saying “for over 50 years, no attempt has been made to reform our tax system despite its archaic nature. These bills aim to ensure maximum value for the people and propel the economy toward prosperity.”

    He acknowledged the growing resistance to the reforms, attributing it partly to a lack of effective communication, he however advised critics to channel their concerns through proper legislative processes, such as public hearings, instead of resorting to protests.

    “Protests don’t advance the cause of peace or dampen the spirit of those supportive of these reforms,” he said.

    Reiterating his belief in democracy’s problem-solving capacity, Akume expressed confidence that a consensus would eventually emerge to address any issues with the bills.

    “Circumstances will build consensus. In a democracy, everyone has their say, but let’s give these bills a chance and see how they enhance our fiscal sustainability and economic growth,” he concluded.

  • Nigeria’s tax reform: To be or not to be?

    Nigeria’s tax reform: To be or not to be?

    Nigeria, a nation deeply embedded in both promise and paradox, finds itself at a critical juncture in its developmental trajectory. From the moment it gained independence, the country’s political and economic landscape has been marred by struggles for power, which often obscure the path to meaningful progress. While we often celebrate the strength of our diversity, it is all too evident that this same diversity has been undermined by mutual suspicion and the prioritisation of ethnic, religious, and cultural interests over the collective economic good. These deep divides have hindered our ability to forge a unified vision for national growth, and the current debate over tax reforms under President Bola Tinubu’s administration is the latest battleground for this divisiveness.

    There could not be a clearer example of the politicisation of critical national reforms than the on-going discourse in the National Assembly over the four tax reform bills introduced by the Presidency. While it is expected that such transformative bills would be subject to robust scrutiny, the arguments against them seem to stray far from the core details of the legislation. In some instances, the opposition appears to be manufacturing unrelated reasons to block these reforms, casting doubt on their merit based on unfounded claims and misinformation. Despite efforts by the government to clarify the potential benefits of these reforms, discussions in both the Senate and the House of Representatives have stalled, leaving the nation in suspense.

    It is only through a patient process of reading through that one can genuinely understand the substance of the proposed tax reforms and have good insights into how to personally address misconceptions that vigorously thrive on sentiments. The tax reform bills are not only a response to Nigeria’s perennial fiscal challenges, but they represent a long-overdue restructuring of a system that has failed to adequately generate revenue or attract significant investment. However, this reform has been met with significant opposition, particularly from some Northern governors who claim that the bills, once passed, will disproportionately burden their region, which is already grappling with economic difficulties, including unpaid salaries and stalled development projects.

    At the heart of the opposition lies the misperception that the reforms will lead to an increase in the Value Added Tax (VAT) from 5% to 7.5%. Critics argue that this increase will inevitably raise the cost of goods and services, further squeezing an already struggling population. While such concerns are legitimate in certain contexts, the fears surrounding the reforms seem to be based on exaggerated projections. The proposed VAT hike is not a decision made in isolation, but rather part of a broader strategy to increase the country’s revenue base in order to meet the ever-growing demand for infrastructure and social services.

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    To be clear, the fear that VAT hikes will lead to higher prices and reduced sales for businesses is largely unfounded. Economic history shows that the relationship between tax rates and price inflation is complex, and businesses, especially larger corporations, are well-equipped to absorb moderate increases in tax liabilities without drastically raising prices. Furthermore, an efficient and equitable tax system that ensures all sectors of the economy contribute their fair share is essential for the country’s long-term fiscal health.

    These notwithstanding, it must be recognised that fears and concerns over innovative measures are sometimes inevitable and it is important for all stakeholders to consider having a robust measure of inclusive dialogue.

    It is undeniable that tax reforms, particularly the expansion of the tax net to include small businesses and individual taxpayers, will raise concerns. Many fear that this will place undue pressure on the most vulnerable members of society and stifle economic activity. The government must address these concerns with sensitivity, offering reassurances that the implementation of the new system will be done gradually, with safeguards to protect small businesses and low-income individuals from excessive burdens.

    The situation is further complicated by the politicisation of the reform process. Instead of focusing on the genuine issues at hand, certain political leaders have introduced extraneous arguments into the debate, some even resorting to religious rhetoric to stir division. The idea that the proposed reforms are aimed at disadvantaging one region over another is entirely without merit. The bills, as proposed, contain no provisions that favour any particular religious or ethnic group. Nonetheless, this misinformation has gained traction, with some advocating for outright rejection of the reforms based on groundless accusations.

    It is crucial that Nigeria’s leadership rises above such petty distractions and refocuses the discussion on the real purpose of the tax reforms: generating the revenue needed to fund critical development initiatives across the country. A fair and balanced tax system is not a tool for punishment, but a means of promoting sustainable growth, job creation, and poverty reduction across all regions.

    The task ahead is to ensure that the tax reform process is both transparent and inclusive. It is important that the government takes the time to consult with all relevant stakeholders—state governments, businesses, and civil society groups—before finalising the legislation. By doing so, the government will not only foster trust but also ensure that the reforms address the genuine concerns of all Nigerians.

    Additionally, it is worth exploring alternatives to the current tax reform proposals. One possible solution would be a more progressive tax system, where higher-income individuals and large corporations are taxed at a higher rate. This approach could help address concerns about fairness, while also increasing the revenue available to fund social programmes and public services. Tax incentives for businesses that invest in critical sectors, such as agriculture and manufacturing, could also be explored as a means of spurring economic growth and job creation.

    The government must also commit to ensuring that tax revenues are used effectively and efficiently. Given the widespread distrust in the country’s financial systems, it is essential that the implementation of the reforms is monitored closely to prevent misuse and corruption. Public education campaigns on the benefits of taxation, as well as programmes to raise awareness of taxpayers’ rights and obligations, should be prioritized.

    Ultimately, the success of the tax reform will depend on the government’s ability to engage with the public, address concerns transparently, and ensure that the reforms are aligned with the country’s long-term development goals. If implemented effectively, the reforms could significantly boost the country’s revenue generation, promote economic growth, and improve the living standards of all Nigerians.

    Critics must genuinely acknowledge that Nigeria’s tax system cannot continue to be a relic of inefficiency and underperformance. The reforms proposed by President Bola Ahmed Tinubu are a necessary step toward securing the financial future of the country. However, the debate surrounding the bills must be grounded in facts, not divisive rhetoric or political posturing. By putting aside ethnic, religious, and regional interests, and focusing on the common good, Nigeria has the opportunity to build a tax system that is fair, transparent, and capable of fostering sustainable economic growth for all.

    The road ahead may be challenging, but with broader consultation, thoughtful debate, and a commitment to transparency, these tax reforms could be the catalyst Nigeria needs to secure a prosperous future for generations to come. The stakes are too high for anything less.

    Conclusively, it must be said that the tax reforms being proposed by President Tinubu represent an essential step toward modernising Nigeria’s fiscal policy and ensuring sustainable economic growth. While opposition and concern are natural, it is imperative that the debate remains focused on the facts and not driven by misinformation, sentiments or needless political division. The government must engage stakeholders meaningfully, address concerns transparently, and demonstrate a commitment to fairness and equity in the reform process. By doing so, Nigeria can build a tax system that works for all, promotes growth, reduces poverty, and improves living standards across the country.

  • Tax Reform: Nigeria’s tax system long overdue for reform – Information Minister

    Tax Reform: Nigeria’s tax system long overdue for reform – Information Minister

    The Minister of Information and National Orientation, Mohammed Idris, has emphasized the urgent need for reforms in Nigeria’s tax administration system, citing taxpayers’ attitudes towards taxation as a key challenge.

    Idris made this statement while serving as Chairman at the 2024 Annual Public Lecture, AGM, and Awards of the Nigerian Institute of Public Relations (NIPR), Kaduna State chapter. 

    The event, held under the theme “Tax Reform: The Role of Public Relations in Fostering Constructive Dialogue for National Economic Renaissance,” brought together stakeholders to discuss the proposed Tax Reform Bills currently before the National Assembly.

    The Minister highlighted the importance of reforming the tax system to enhance national economic growth, underscoring the critical role of public relations in facilitating meaningful dialogue and fostering public trust.

    He stated: “The theme has brought to the fore yet again, the place of constructive dialogue as a vital pillar of democracy while noting that the ongoing review of the country’s tax laws is timely and crucial, especially as part of a larger set of macroeconomic reforms, just as he commended the Presidential Committee on Fiscal and Tax Reform for an excellent job, in terms of public engagement.

    According to the Minister, “The topic before us today is a sensitive yet important and inescapable one: taxation. It was the American statesman, Benjamin Franklin, who famously said that “In this world, nothing is certain except death and taxes.

    “Let me make it clear that, even with our keenness for fundamental reform of Nigeria’s governance and fiscal systems, the Tinubu administration will never do anything to undermine the ideals of participatory democracy. The current mandate and responsibility that we have for governing and reforming Nigeria at this time came by way of democracy, and we will continue to live up to those very high democratic standards and expectations.

    “All over the world, effective taxation is important as a source of financial power for governments to provide social services for their citizens. However, there is plenty of reason to believe and assert that Nigeria’s tax administration system has become long overdue for reform, on account of design and implementation flaws as well as the general attitudes of taxpayers toward taxation.

    “In light of this, the ongoing review of the country’s tax laws and realities is timely and crucial, especially as part of a larger set of macroeconomic reforms aimed at setting the country on an irreversible path of growth and development. The full details of the new tax bills are available in the public domain – one must commend the Presidential Committee on Fiscal and Tax Reform for an excellent job in this regard, in terms of public engagement – so I will not attempt to go over these details again here.

    “What I will say is that it is very inspiring and heartwarming to see Nigerians from all walks of life coming out to express their views and opinions on these matters of critical national importance, as such is the very essence and meaning of democracy. In spite of the challenge of trust deficit that tends to crop up around matters of governance in Nigeria, we have still been able to have what can be adjudged as robust debate on this sensitive issue.

    “President Tinubu has also been very clear that the Executive will listen to and work with all stakeholders to ensure that all concerns are duly and comprehensively addressed. We will continue to ensure open lines of communication and engagement with the National Assembly and all other stakeholders on these taxation bills. We are all in this together, as one people, one nation, and just as we are being called upon to make collective sacrifices, we will also collectively reap the abundant social and economic benefits of all of these necessary reforms.

    “It is at times like this that we are reminded of the important roles of Public Relations in the maintenance of a functioning and healthy society. By facilitating purposeful communication, building mutual understanding, and transparent promotion of ideas, Public Relations practice and practitioners can help create a culture of collaboration and progress.

    “Also, as President Bola Ahmed Tinubu continues to implement an ambitious fiscal reform agenda that will devolve more resources to Nigeria’s State and Local Governments, and ultimately to the Nigerian people, in the spirit of true federalism, citizen engagement will become ever more critical.

    “Those of us who manage communications for the Federal Government understand that we have a lot of work on our hands. We are up to the task, and we will continue to deploy innovative and comprehensive mechanisms to provide the public with insights and enlightened information that will bolster public trust and confidence in the reform narratives of the Renewed Hope agenda.

    “We will also be looking to count on the strong support of the NIPR, among many other stakeholders. Which is why this dialogue is very much welcome, and commendable.

    “Society advances by mutually respectful engagements, where we give voice to diverse opinions, and respect those who we disagree with. We will certainly not always agree on all issues, perhaps not even on most. But we will always be guided by the fact that the things that unite us – our common humanity, our nationhood, our sense of patriotism, our collective vision for a Nigeria that works for all – will always be more important and more meaningful than our differences of age, religion, region, ideology, gender, culture, and social class,” the Minister said.

    Earlier, the President of NIPR, Dr. Ike Neliaku pleaded the institute’s support for the expected reality and implementation of the tax reform in the country by using the vocal voices of the institute across the country.

    Also the Lead Discussant, Professor Mustapha Bagudo Muhammad gave a thorough insight into the numerous advantages of the reform while all the Panelists including Senator Shehu Sani, Professor Cosmos Eze and Professor Hauwa’u Evelyn Yusuf all gave their nod to the proposed tax reform.

    Senator Sani in his submission said, countries like Saudi Arabia and United Arab Emirates have started taking measures to address their post oil feature, adding that the Tax Reform is one of the very important steps for Nigeria and Nigerian economic feature.

    Speaking also, Islamic scholar, Sheikh Ahmad Gumi and former Chairman Christian Association of Nigeria (CAN) Kaduna State, Rev. Dr. John Joseph Hayab both argued that the tax reform was necessary, however called for more awareness creation and sensitization. 

  • Transforming Nigeria’s economic landscape: Leveraging Tinubu’s tax reform for sustainable growth in digital age

    Transforming Nigeria’s economic landscape: Leveraging Tinubu’s tax reform for sustainable growth in digital age

    • By Ojo Emmanuel Ademola

    Nigeria stands at a crucial juncture in its economic development journey, grappling with the challenges of regional divide, opposition from key stakeholders, and the need for comprehensive tax reforms to propel growth and sustainability in the digital age. Against this backdrop, the proposed Tax Reform by Bola Tinubu presents a unique opportunity to revitalize Nigeria’s economy, foster competitiveness, and drive innovation. This article delves into the potential benefits of the tax reform, explores examples from global North nations, and offers recommendations for maximizing its impact on businesses, individuals, and overall economic development in Nigeria.

    Firstly, the proposal of Tinubu’s Tax Reform Bill marks a pivotal moment in Nigeria’s fiscal landscape, with its proactive and bold approach towards restructuring the country’s financial framework. In comparison to past fiscal legislation, such as Gowon’s Decree 15 of 1967, which significantly altered the fiscal identity of the country, and Ironsi’s Decree 34 of 1966, Tinubu’s Tax Reform Bill stands out as a paradigm-shifting initiative credited to Tinubu. This transformative legislation not only signifies a departure from traditional fiscal policies but also paves the way for sustainable economic development and growth in Nigeria. By embracing this statement, we can delve deeper into the potential of tax reform to enhance economic stability and advance the country’s path towards sustained prosperity.

    Intriguingly, Tinubu’s Tax Reform Bill is a groundbreaking piece of legislation that has the potential to transform Nigeria’s economy and drive sustainable development. By implementing bold and proactive measures, this reform seeks to address longstanding fiscal challenges and create a more conducive environment for business growth and investment.

    One of the key aspects of this reform is its focus on simplifying the tax system and making it more efficient and transparent. By streamlining tax processes and eliminating unnecessary bureaucracy, businesses will be able to operate more effectively and contribute to the country’s economic development.

    Furthermore, this reform aims to promote fiscal responsibility and accountability, ensuring that government revenue is used efficiently and effectively for the benefit of all Nigerians. By improving tax collection and enforcement mechanisms, the government will be able to fund important infrastructure projects and social programs that are essential for sustainable development.

    It is important to recognize the significance of Tinubu’s leadership in driving this initiative forward. His vision and commitment to reforming Nigeria’s tax system have been instrumental in pushing this legislation through and setting the country on a new path towards economic prosperity.

    Essentially, Tinubu’s Tax Reform Bill represents a paradigm shift in Nigeria’s fiscal landscape and has the potential to unlock new opportunities for growth and development. By embracing this legislation and supporting its implementation, Nigeria can pave the way for a more sustainable and prosperous future for all its citizens.

    The questions then arise, how does Tinubu’s Tax Reform Bill pave the way for a transformative change in Nigeria’s fiscal system, comparable to the impact of Gowon’s Decree 15 of 1967, and how does it differ from Ironsi’s Decree 34 of 1966, especially in the context of the rapidly evolving digital age? This bold and proactive legislation, credited to Tinubu, may well be the catalyst needed to drive economic development and sustainability in Nigeria for years to come.

    Tinubu’s Tax Reform Bill stands out as a proactive and bold move that has the potential to revolutionize Nigeria’s fiscal policies and pave the way for sustainable economic development. Comparing this bill to previous fiscal legislation, such as Gowon’s Decree 15 of 1967 and Ironsi’s Decree 34 of 1966, sheds light on the transformative nature of this new proposed reform, especially in the context of the digital age.

    Gowon’s Decree 15 of 1967 significantly altered Nigeria’s fiscal identity by introducing centralized control over fiscal policies, which had a lasting impact on the country’s economic landscape. This decree aimed to streamline taxation and revenue collection, but it lacked the foresight to adapt to changing global economic trends and technological advancements.

    Ironsi’s Decree 34 of 1966, on the other hand, sought to unify Nigeria’s tax system under a single national tax authority. While this was a step towards simplifying tax administration, it failed to address the complexities of a rapidly evolving economy and the challenges posed by the digital age.

    In contrast, Tinubu’s Tax Reform Bill takes a more proactive and forward-thinking approach by embracing digital innovation and leveraging technology to enhance tax compliance and revenue generation. By incorporating digital platforms and data analytics into the tax system, this reform has the potential to improve transparency, efficiency, and accountability in fiscal management.

    Moreover, the emphasis on sustainability in Tinubu’s Tax Reform Bill underscores the commitment to long-term economic growth and development. By promoting a more equitable and inclusive tax system, this legislation aims to create a favourable environment for businesses to thrive and contribute to the country’s overall prosperity.

    Essentially, Tinubu’s Tax Reform Bill represents a paradigm shift in Nigeria’s fiscal policies, offering a promising path towards economic advancement in the digital age. Embracing this reform will not only modernize the tax system but also lay the foundation for a more resilient and sustainable economy in the years to come.

    Read Also: League of northern democrats sets up expert panel to review tax reform bills

    Additionally, in what ways could the implementation of Tinubu’s Tax Reform enhance the resilience and strength of Nigeria’s economy, bridging regional divides and overcoming potential opposition from governors in certain northern states of the country? Despite the challenges posed by this dichotomy, could the comprehensive vision of this tax reform ultimately lead to a more unified and prosperous economic future for Nigeria as a whole?

    Tinubu’s Tax Reform Bill has the potential to benefit the robustness of Nigeria’s economy by promoting a more efficient and equitable tax system that bridges regional divides and fosters economic growth nationwide. Despite the opposition from some northern states’ governors, the implementation of this reform could have several positive impacts on the economy as a whole:

    1. Increased Revenue Generation: By modernizing the tax system and leveraging digital tools for better compliance and enforcement, the Tax Reform Bill can lead to increased revenue collection. This additional revenue can be used to fund infrastructure projects, social programs, and other initiatives that benefit all regions of Nigeria.

    2. Enhanced Investment Climate: A more transparent and efficient tax regime can boost investor confidence and attract both domestic and foreign investments. This influx of capital can stimulate economic activity, create jobs, and drive growth across the country, regardless of regional divides.

    3. Improved Resource Allocation: A fair and effective tax system ensures that resources are allocated efficiently, benefiting all regions of Nigeria. By closing loopholes and reducing tax evasion, the government can allocate funds where they are most needed, addressing development disparities between regions and promoting overall economic stability.

    4. Sustainable Development: The emphasis on sustainability in the Tax Reform Bill underscores the importance of long-term economic planning and environmental conservation. By promoting sustainable practices and incorporating green incentives into the tax system, the reform can drive environmentally friendly growth that benefits all regions of the country.

    5. Social Inclusivity: A more equitable tax system that considers the needs of all citizens, regardless of their geographic location, promotes social inclusivity and reduces inequalities. This can lead to improved social cohesion and stability, fostering a conducive environment for economic development nationwide.

    Coherently, despite the opposition from some northern states’ governors, the implementation of Tinubu’s Tax Reform Bill has the potential to benefit the robustness of Nigeria’s economy by promoting sustainable growth, enhancing investment climate, and ensuring equitable resource allocation across regions. By bridging regional divides and fostering economic development nationwide, the reform can pave the way for a more prosperous and inclusive future for all citizens of Nigeria.

    Let’s consider examples of comparable tax reforms in the Global North and how these initiatives have affected businesses and individual citizens in those nations. By examining the experiences of other countries, what insights can be gleaned to anticipate the potential outcomes and implications of Tinubu’s Tax Reform in Nigeria?

    One notable example of tax reform from a Global North nation is the Tax Cuts and Jobs Act (TCJA) passed in the United States in 2017. The TCJA was a comprehensive overhaul of the U.S. tax system, aiming to simplify tax payments, stimulate economic growth, and make the U.S. more competitive globally. The reform reduced corporate tax rates, introduced new deductions for businesses, and simplified individual tax brackets.

    The impact of the TCJA on businesses and individual citizens in the U.S. has been significant. Here are some key effects:

    1. Businesses:

    I. Lower corporate tax rates (from 35% to 21%) have boosted corporate profits and incentivized investment in the U.S.

    II. The introduction of bonus depreciation and enhanced expensing provisions has encouraged businesses to invest in new equipment and technology.

    III. The repatriation tax holiday allowed U.S. multinational corporations to bring back foreign earnings at a reduced tax rate, leading to increased investments and stock buybacks.

    2. Individual Citizens:

    I. Many individual taxpayers saw a reduction in their tax liability due to lower tax rates and increased standard deductions.

    II. Some deductions and credits were modified or eliminated, impacting taxpayers differently based on their specific circumstances.

    III. The TCJA also repealed the Affordable Care Act’s mandate, which required most Americans to have health insurance, potentially impacting healthcare coverage and costs for citizens.

    Overall, the TCJA has had a mixed impact on businesses and individual citizens in the U.S. While it provided tax relief for many businesses and individuals, it also faced criticism for disproportionately benefiting the wealthy and adding to the national debt.

    In analyzing the impact of similar tax reform in Global North nations like the U.S., it is essential to consider the specific context, goals, and socioeconomic conditions of each country. Lessons learned from such reforms can be valuable for Nigeria and other countries seeking to implement tax reforms that promote economic growth, equity, and sustainability.

    How can we strategically advance Tinubu’s Tax Reform to include credible value additions that enhance competitiveness for businesses? By ensuring seamless economic operations and leveraging the dividends of democracy, how can Nigeria strengthen its path to long-term economic development and sustainability in the digital age?

    To move forward with Tinubu’s Tax Reform and enhance its value propositions for businesses, promote competitiveness, and ensure economic sustainability in Nigeria’s digital age, the following recommendations can be considered:

    1. Enhance Digital Infrastructure: Invest in improving digital infrastructure and connectivity to support businesses’ transition to digital operations. This includes expanding broadband access, promoting digital literacy, and establishing secure digital payment systems.

    2. Simplify Tax Processes: Streamline tax compliance processes and provide educational resources to help businesses understand and adhere to tax regulations effectively. Implement technology-driven solutions such as online tax filing platforms to make compliance easier for businesses.

    3. Incentivize Innovation: Offer tax incentives for businesses that invest in research and development, innovation, and technology adoption. Encourage the adoption of emerging technologies such as artificial intelligence, blockchain, and data analytics to drive efficiency and competitiveness.

    4. Support Startup Ecosystem: Create a conducive environment for startups and small businesses by offering tax breaks, funding opportunities, and mentorship programs. Foster innovation and entrepreneurship to drive economic growth and job creation.

    5. Promote Skills Development: Invest in workforce training programs to equip individuals with digital skills and expertise needed for the evolving digital economy. Ensure that the workforce is prepared for the demands of the digital age to support businesses’ growth and competitiveness.

    6. Implement Data Privacy Regulations: Enact data protection laws and regulations to safeguard businesses and consumers’ data privacy rights. Ensure compliance with global data privacy standards to build trust and credibility in the digital marketplace.

    7. Encourage Foreign Investment: Offer tax incentives and policies that attract foreign investors to Nigeria’s digital economy. Create a business-friendly environment that fosters foreign direct investment and enhances the country’s competitiveness on the global stage.

    8. Monitor and Evaluate Impact: Establish mechanisms to monitor the implementation and impact of the tax reform on businesses, economic development, and sustainability. Regularly assess the effectiveness of the reform measures and make necessary adjustments to optimize outcomes.

    By implementing these recommendations and leveraging the opportunities presented by the digital age, Nigeria can strengthen its path to economic development and sustainability, create competitive advantages for businesses, and deliver dividends of democracy through Tinubu’s Tax Reform.

    In conclusion, the Tax Reform proposed by Bola Tinubu holds immense potential to reshape Nigeria’s economic landscape, bridge regional divides, and usher in a new era of growth and sustainability. By leveraging digital technologies, incentivizing innovation, and fostering a supportive business environment, the reform can create competitive advantages, empower businesses, and drive economic development. Stakeholders must rally behind the reform, address opposition through dialogue and collaboration, and diligently implement the recommended strategies to unlock the full benefits of the reform for Nigeria’s prosperity in the digital age. Embracing change, fostering innovation, and ensuring inclusivity will be pivotal in realizing the dividends of democracy and strengthening the path to economic development and sustainability in Nigeria.

  • MAN, Kukah okay tax reform, Senate widens consultation

    MAN, Kukah okay tax reform, Senate widens consultation

    • AGF, MDAs to work with lawmakers
    • Stormy session in House of Reps

    Manufacturers joined forces yesterday with advocates of tax reforms on the passage of the Tax Reforms Bills before the National Assembly.

    Outspoken Catholic Bishop, Hassan Matthew Kukah, also supported the bills, thereby swelling the ranks of those backing the Bola Tinubu administration’s bold move for fiscal transformation.

    The Senate, where the bills are in committee stage, said yesterday that consultations would be widened before the public hearing.

    The Senate Committee on Finance was last week given six weeks to work on the bills and conduct the public hearing.

    Yesterday, it was a stormy session in the House of Representatives over the bills.

    President   Tinubu has directed the Attorney-General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi (SAN), to work with the National Assembly to clarify the grey areas, according to Minister of Information and National Orientation, Mohammed Idris.

    Idris said the President’s directive was  to ensure “that all genuine concerns have been addressed before the bills are passed.”

    President endorses robust debate

    Idris added: “The robust nationwide debate on the new tax reform bills currently before the National Assembly is welcomed, and commendable. It is very inspiring to see Nigerians from all walks of life coming out to express their views and opinions on these matters of critical national importance. This is the very essence and meaning of democracy.

    “I call on all commentators and groups to keep up the spirit of informed engagement and to strive to be respectful and understanding at all times despite the diversity of opinions. In the spirit of democratic engagement, there should be no room for name-calling or the injection of unnecessary ethnic and regional slurs into this important national conversation.

    “Similarly, it is important to be aware that there is a lot of misinformation and fake news on the tax bills and the overall reform agenda of the Tinubu Administration. The fiscal reforms will not impoverish any State or region of the country, nor will they lead to the scrapping or weakening of any federal agencies.

    “Instead, they will bring relief to tens of millions of hardworking Nigerians across the country and empower and position our states and the 774 local governments for sustainable growth and development.

    “President Bola Ahmed Tinubu is implementing an ambitious fiscal reform agenda that will devolve more resources to Nigeria’s states and local governments, and ultimately to the Nigerian people, in the spirit of harnessing democracy that works for the people.

    “It is pertinent to state that the government has nothing sinister to warrant the suggestion that the process is being rushed. In line with the established legislative procedure, the Federal General welcomes meaningful inputs that can address whatever grey areas there may be in the bill.

    “We are indeed witnessing, at this moment in the history of Nigeria, the most far-reaching, impactful, and beneficial set of fiscal reforms that Nigeria has seen in decades.

    “In addition to the four tax bills being debated and deliberated upon, there is also the 2023 Supreme Court ruling on financial autonomy for local governments, which will significantly empower the tier of government that is closest to the Nigerian people.

    “In all, these reforms will not only facilitate increased revenues (without imposing additional tax burdens on the people), they will also make it possible for citizens to demand and enjoy greater accountability in the management of public resources at all levels of government.

    “President Tinubu and the administration will continue to champion policies that close the loopholes and gaps through which Nigeria’s valuable public resources have been frittered away for decades.

    “On top of this necessary foundation, the resources being conserved and realised from these reforms will be invested in critical infrastructure (healthcare, education, transportation, digital technology, etc) and in social investments that will benefit all Nigerians and ensure that no one is left behind. This is the promise and the reality of the Renewed Hope agenda.”

    MAN endorses bill

    Director- General of the Manufacturers Association of Nigeria (MAN) Segun Ajayi-Kadir, said in MAN’s Third Quater 2024 Economic Report that the bills are meant to restructure and streamline tax processes, establish a unified revenue service and simplify financial obligations for businesses and citizens.

    MAN called for speedy passage of the bills and implementation of the reforms. It urged the Central Bank of Nigeria (CBN) to also pause interest rate hikes to allow for an impact assessment.

    Ajayi-Kadir said no doubt,  CBN’s efforts to curb inflation and stabilise the naira are commendable. He, however, said the prolonged macroeconomic headwinds, despite its numerous interventions, are clear indications that excessive adoption of monetary policies was not sufficient to tackle the inherent challenges.

    He called for the extension of the Presidential Order suspending import duty and Value Added Tax (VAT) on essential food items and pharmaceutical supplies to other manufacturing sectors.

    The MAN boss also called for a reduction of electricity tariff to only 100 percent increase of the previous price and an improvement of electricity access by introducing an outage compensation mechanism.

    Kukah:   reform ’ll  end elite financial recklessness

    Emphasising that the tax bills would end  elite financial recklessness, Kukah said the reforms should foster development.

    He said: “Nigeria is a very energetic country with people that are so eminently gifted and are roaring to soar at any time.

    Read Also: Senate to consult widely before public hearing on Tax Reform Bills

    “However, our problem is the inability of states to create enough gatherings to contain the energy, vision, and competing narratives of their citizens. This lack of competitive gatherings often spills over into violence.

    “I am excited about the issue of Tax Reform Bills because, first, I know nothing about it. But I have started educating myself. Any form of reform at all must get this thoroughly dysfunctional country working again.

    “So, I am excited because hopefully, we can take the time to listen to the conversation about how to avoid and end this financial recklessness, and the irony of Nigerians living by the seaside and washing their faces with saliva.

    “The reforms should end the narrative of Nigerians living in a country that is so richly endowed but are spectators to the rascality and irresponsibility of the elites who continue to mismanage our resources.

    “ I’m hopeful that this is the beginning of a very long journey of fiscal management and efficiency that can lead to the growth and development of the kind of country that we envision.”

    Kukah spoke on national television.

    It will promote fiscal federalism, says Obono-Obla

    A  senior lawyer, Okoi Obono-Obla described the reform as a huge milestone that would herald fiscal federalism in the country.

    He said the bills if passed, would eliminate multiple taxation and corrupt practices in the tax system.

    Obono-Obla urged the critics of the bills to exercise caution to avoid throwing away the baby with the bath water.

    “We have been clamouring for a return to fiscal federalism so that every state in the federation would become centers of development and growth rather than parasites waiting for monthly allocations from Abuja,’’ he  said in a statement  

    “The Tax Reform Bills, if passed into law, would restore fiscal federalism and turn the states into centres of development and growth,” the senior lawyer added.

    Obono-Obla said the antagonists of the bills had failed to devote their time to study them.

    He added: “In the muddled atmosphere, nothing has been done by some antagonists of these bills to study them to discern whether what the protagonists have been saying about them is accurate.”

    Obono-Obla singled out the Nigeria Revenue Service Bill and highlighted how it would revolutionise the country’s tax system.

    He said: “Before now, revenue generation and collection were handled by a myriad of Federal Government agencies, which the government didn’t even track, resulting in chaos and disorder, which some kleptocrats in these agencies took advantage of to steal, pilfer, and loot without any modicum of conscience”.

    Obono-Obla explained that if the Nigerian Revenue Service (Establishment) Bill 2024 is passed, the collection of taxes and revenue would be decentralised and domiciled in one agency.

    He said: “All taxes and revenues hitherto collected by the Nigerian Ports Authority, Nigerian Marine Administration and Safety Agency, Federal Airports Authority of Nigeria, etc., would now be collected by the Nigeria Revenue Service.”

    He added that the Nigeria Revenue Service would also be vested with the power to assist, upon request, a state or local government in the collection or administration of a tax that the requesting body has the statutory right to collect or administer.

    Row in House of Reps

    Yesterday’s plenary of the House of Representatives was greeted by controversy following comments by two members on the Tax Reform Bills.

    One of the comments was an off-the-hook claim by the House spokesman Akintunde Rotimi that the Ekiti State caucus in the House had unanimously endorsed the tax bills.

    The second was an online report credited to the Deputy Spokesman of the House, Phillip Agbese, that members opposed to the bills had become interested in speedy passage.

    Some lawmakers who felt aghast registered their displeasure with the comments and demanded apologies from the House spokesman and his deputy.

    Rotimi apologised to his colleagues after Speaker Abbas Tajudeen had done the same on his behalf.  

    The storm began when the House spokesman was to present reports on two bills from the House Committee on Nigerian Content Development and Monitoring on behalf of the committee’s Chairman, Boma Goodhead.  

    Rotimi said: “My name is Akin Rotimi, I represent the good people of Ekiti 1 Federal Constituency made up of Oye and Ose. I am from Ekiti State, the first state to unanimously adopt the tax bills.”

    His introduction was immediately greeted with ‘No, No, No by some members.

    Several attempts by the Speaker to calm the members proved abortive as they refused to accept his (Abbas) apology. They also insisted that Rotimi must discontinue the presentation of the reports.

    Despite the opposition,  Abbas asked Rotimi to continue with a clear instruction to stick to the reports.

    He said: “Restrict yourself to the person you are representing here. We are not talking about tax bills. Hon. Rotimi, you know this is a controversial issue. I don’t want you to be mentioning things that are not relevant to the subject matter.

    ‘’On your behalf, I withdraw that statement that you have made and please let us not repeat it. So, go ahead and raise your motion.’’

    After the appeal by the Speaker and the withdrawal of the earlier introduction, Rotimi proceeded to present the report on the Nigeria Content Development Board.

    However, members did not allow the motion to be seconded even though Abbas tried to get someone to second it.

    At this point,  Rotimi stepped down the presentation.

    When normalcy was about to returned, a member Ghali Mustapha, complained about a statement credited to the Deputy spokesman of the House,   Agbese.

    Mustapha demanded an apology to the House by Agbese and his resignation as deputy spokesman.

    Another member, Sada Soli advised that the investigation of the comment be referred to the Committee on  Ethics and Privileges.

     Deputy Speaker   Kalu  commended Mustapha but said: “You cannot speak on behalf of the members  without the permission of the House.”

    “It is not in your prayer, we will note it and take it from there. I can assure you that justice will be done to this and if there is any retraction to be made, it will be made.” Kalu promised.

    We’re not involved in proposals, says Alpha-Beta

     A leading technology solutions and infrastructure maintenance firm,  Alpha-Beta Consulting LLP, has distanced itself from  the Tax Reform Bills.

    The firm described as baseless and unfounded, recent claims in some quarters that it played a key role in the preparation of the proposed tax laws.

    Akinsanya Doherty, managing director of Alpha-Beta made denial in a statement yesterday.  

    The statement reads: “As a Managing Director of Alpha-Beta Consulting LLP, I categorically affirm that I have neither met nor had any discussions, dealings, or involvement with Mr. Taiwo Oyedele, chairman of the Presidential Tax Policy and Fiscal Reform Committee, despite our shared profession.

    “Furthermore, neither I nor the firm has made any input into the Federal Government’s tax reform bills. These allegations are false and should be dismissed outright.”

    Oyedele recently clarified during a Town Hall Meeting that there were no plans to outsource federal tax collection to any consulting firm, including Alpha-Beta.

    Northern youths in rally for Barau 

    Some youths from across the 19  states in the North yesterday staged a solidarity rally in support of  Deputy Senate  President  Barau Jibrin at the National Assembly,  Abuja.

    The rally, according to the youth, was to warn those attacking Jibrin for allowing members of the Taiwo Oyedele-led  Presidential Committee on Tax Reforms,  and other tax reform experts to make presentations on the tax bills during Senate’s plenary on Wednesday.

    They described Jibrin, who presided over the session, as the “Sardauna of our era.”

    The placard-carrying youths also termed the deputy Senate President as the best Senator from the North.

    A former President of the National Association of Nigerian Students (NANS) Tijjani  Mohammed, who led the rally said it was important for people to know that Jibrin has neither supported nor kicked against the tax bills.

  • APC chieftain Mumuni drums support for Tinubu’s tax reform

    APC chieftain Mumuni drums support for Tinubu’s tax reform

    A prominent member of the ruling All Progressives Congress (APC), Dr. Abayomi Nurain Mumuni, has expressed support for the proposed tax reform introduced by President Bola Ahmed Tinubu, stating that it is designed to increase revenue generation and create more jobs in the country.

    In a statement issued on Tuesday by his media aide, Rasheed Abubakar, Mumuni explained that the tax reform bills, recently transmitted by Tinubu to the National Assembly, would strengthen the country’s fiscal framework.

    Mumuni emphasised that once passed into law, the reforms would promote economic growth, with key benefits including enhanced revenue generation, economic diversification, attraction of foreign investments, and improved public services.

    The statement said: “Here are some potential benefits associated with the bill. Increased Revenue Generation. The reform aims to broaden the tax base and improve compliance, leading to increased government revenue for public services and infrastructure. 

    “Economic Diversification. By encouraging investments and reducing reliance on oil revenues, the bill supports diversification into sectors like agriculture, technology, and manufacturing.

    “Attracting Foreign Investment. A more transparent and predictable tax system can make Nigeria more attractive to foreign investors, fostering economic growth. Job creation. Increased business activity and investment can lead to job creation, reducing unemployment and poverty levels.

    “Improved Public Services. With higher tax revenue, the government can better fund essential services such as education, healthcare, and infrastructure development. Support for Small and Medium Enterprises (SMEs). The bill may include provisions to simplify tax processes for SMEs, encouraging entrepreneurship and innovation.

    Read Also: Lottery ruling: Mumuni seeks AGF’s clarification on Supreme Court judgment 

    “Strengthened Tax Administration. Reforms could enhance the efficiency and effectiveness of tax collection mechanisms, reducing corruption and leakages. Fiscal Responsibility. Strengthening tax policies can promote fiscal discipline, helping the government manage its budgets more effectively.

    “Enhanced Economic Stability. A reliable tax framework can contribute to overall economic stability, making Nigeria less vulnerable to external economic shocks. Promotion of Social Equity. Reformed tax policies can ensure that wealthier individuals and corporations contribute their fair share, promoting a more equitable society.

    “Overall, these reforms aim to create a more favorable economic environment in Nigeria, benefiting both the government and its citizens.”

  • 23 surprising facts about Tinubu’s Tax Reform that could change everything

    23 surprising facts about Tinubu’s Tax Reform that could change everything

    • Discover how it affects food prices, school fees and more!
    • By Achimi muktar

    The tax reform bills proposed by President Bola Ahmed Tinubu have ignited a fierce debate across Nigeria. While critics and supporters clash, many remain unaware of the sweeping changes these reforms aim to introduce. From slashing taxes for small businesses to easing the financial burden on low-income earners, here’s everything you need to know—explained in plain terms.

    What’s the fuss about?

    President Tinubu recently sent four tax-related bills to the National Assembly. These include: Nigeria Tax Bill; Nigeria Tax Administration Bill; Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill. While these bills seek to modernise Nigeria’s outdated tax laws, they’ve also stirred controversy, with governors and regional leaders sparring over revenue sharing and fairness. Here’s the good news: the reforms are designed to benefit everyday Nigerians, especially the poor and small businesses. Here are 23 things you probably didn’t know about Tinubu’s tax reforms:

    Income tax relief for low earners

    If you earn N800,000 or less annually, you’ll no longer pay income tax—saving N84,000 yearly.

    Higher threshold for

    maximum tax rates

    Only those earning above N50 million will pay a 25% income tax rate, unlike the current threshold of N3.2 million.

    Small business tax exemptions

    Businesses with turnovers below N50 million won’t pay income tax—a jump from the current N25 million threshold.

    Reduction in corporate tax rates

    Medium and large companies will see corporate taxes drop from 30% to 25% by 2026.

    Elimination of ‘Minimum Tax’

    Companies that fail to declare profits will no longer face a mandatory 1% gross earnings tax.

    Lower burden on big firms

    A new 2% development levy replaces the current 3.75% in additional taxes—directly funding student loans from 2030.

    Changes to VAT sharing formula

    States will now receive 55% of VAT revenue, up from 50%, while the federal government’s share drops from 15% to 10%.

    Progressive VAT increase

    VAT rates will rise gradually from 7.5% today to 15% by 2030—but basic necessities like food and medicine remain exempt.

    Affordable food and essentials

    No VAT will be charged on food items, electricity, school fees, or medical services, ensuring prices stay low for the poor.

    Investment incentives in gas

     Tax breaks encourage both associated and non-associated gas projects to boost energy supply.

    Revolutionising tax administration

    The Nigeria Tax Administration Bill introduces new ways to ensure compliance and fairness:

    Read Also: Tax Reform Bills not against North, Presidency declares

    Catching tax evaders

    High spenders (N25 million/month for individuals, N100 million/month for businesses) are flagged for tax audits via bank records.

    Payment flexibility

    Taxes assessed in foreign currencies can now be paid in Naira at official exchange rates.

    Streamlined collections

    The Nigeria Revenue Service (NRS) will take over tax collection from agencies like Customs, enabling regulatory bodies to focus on oversight.

    Tax refund guarantees

    Funds for verified tax refunds will be deducted from collections to ensure prompt payments. Empowering local governments and simplifying taxes

    The Joint Revenue Board Establishment Bill is equally transformative:

    Local revenue committees

    LGAs will manage taxes, fines, and rates within their jurisdictions to boost efficiency.

    Harmonised offences and penalties

    Tax laws will now have uniform penalties to improve compliance nationwide.

    Dispute resolution

    A Tax Appeal Tribunal will settle disputes, including disagreements over residency for tax purposes.

    Taxpayer advocacy

    A Tax Ombudsman Office will help citizens seek justice if treated unfairly by tax authorities.

    Why this matters

    Proponents of Tinubu’s reforms argue they are pro-poor, pro-growth, and pro-efficiency. With exemptions for low-income earners and small businesses, alongside incentives for local economic activities, these bills aim to reduce Nigeria’s reliance on oil revenue while fostering a fairer, more inclusive tax system.

    What’s next?

    The bills have passed the Second Reading in the Senate and now await public hearings. While the debate rages on, analysts agree: if implemented correctly, these reforms could transform Nigeria’s tax ecosystem and uplift millions of Nigerians.