Public hearing on the four tax reform bills commenced in the Senate on Monday with key stakeholders throwing their weights behind them.
Senate President Godswill Akpabio told the stakeholders at the hearing that less than 30% of Nigerians pay tax.
“This is part of the ways we can diversify our economy by making sure that we get it right. I don’t think at the moment that up to 30 per cent of Nigeria pay taxes and yet, 100 per cent of Nigerians want good roads”, he said.
The proposed laws– Nigeria Tax Bill (NTB) 2024, Nigeria Tax Administration Bill (NTAB) 2024, Nigeria Revenue Service (Establishment) Bill (NRSEB) 2024 and the Joint Revenue Board (Establishment) Bill (JRBEB) 2024—were presented to the National Assembly for passage by President Bola Ahmed Tinubu in October last year.
However, the debate on them caused a storm in the House of Representatives before the lawmakers passed the bills for public hearing.
Minister of Finance and Coordinating Minister for the Economy Olawale Edun; Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) Mele Kyari; Federal Inland Revenue Service (FIRS) Chairman Zacchaeus Adedeji; Presidential Committee on Fiscal Policy and Tax Reforms Chairman Taiwo Oyedele; Nigeria Customs Service (NCS) Comptroller- General Adewale Adeniyi and Nigerian Bar Association (NBA) former President Yakubu Maikyau were among the stakeholders at the event.
Others were Minister of Trade and Investment Jumoke Oduwole; Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Chairman Mohammed Bello-Shehu; representatives of the Office of the Attorney-General of the Federation, Institute of Chartered Accountant of Nigeria (ICAN); Association of National Accountants of Nigeria (ANAN) and the Chartered Institute of Taxation of Nigeria (CITN).
Akpabio challenged lawmakers, stakeholders, and the private sector to unite in overhauling Nigeria’s tax system, which he described as outdated and burdensome.
He emphasised that taxation should not be a tool of oppression, but a mechanism for national development.
Highlighting the injustice of tax revenue distribution, the Senate President questioned why states hosting factories that pay VAT receive little benefit while corporate headquarters in other regions collect the bulk of taxes.
“Taxation should be fair, transparent, and efficient. Every Nigerian deserves a system that works for them, not against them,” Akpabio said.
He urged Nigerians to move beyond social media debates and engage with the actual bills, emphasising that the Senate’s focus is on building a legacy of good governance, not passing laws arbitrarily.
With digital innovation and streamlined administration at the heart of the proposed reforms, Akpabio assured that the changes would harmonise tax collection, reduce compliance costs, and boost economic stability.
“This is more than legislation. It is about the future of our economy. Five years from now, we will look back and say, ‘Yes, thanks to these reforms, we built a stronger Nigeria,’’ he said.
He added that since some Nigerians are not always willing to pay taxes, the reforms would make it easy for them to pay.
Akpabio said: “We are not interested in making laws for ourselves. We want to leave what I will call enduring legacies for the future. And I also believe strongly that President Bola Ahmed Tinubu is quite aware that laws are meant to be obeyed and laws are meant for the good governance of the country.
“In coming up with reforms, he (Tinubu) is looking at the situation yesterday, looking at the situation today, and looking at Nigeria in the future with the way the global trend is going in terms of economic indices and changes.
“So, whenever reforms come, sometimes it might be difficult for you to comprehend, but the best place for you to come and ventilate your thoughts is right here in the National Assembly.
“This gathering is significant because the individuals in this hall understand the legislative process. This is the place where we discuss, analyse, and refine policies for the benefit of our nation.
“We are here not just to debate but to make informed decisions that will shape Nigeria’s economy. At the House of Representatives, we have been actively engaging various stakeholders, including young minds, to ensure inclusivity in governance.
“I hope these engagements continue until we have fully addressed all concerns, ensuring that our tax laws serve the best interests of the Nigerian people.
“Enhancing revenue for national development is a responsibility that concerns every Nigerian – men, women, and children alike.
“Effective taxation is not just about governance; it is about ensuring that our resources are managed efficiently to build a prosperous future.
“I think what we need to do is to try our best to even discuss and douse most of the speculations, most of the misconceptions, most of the misleading insinuations because I don’t think there is anybody interested in making a law that will not be in the interest of Nigeria, such a law will not last.
“We were very determined as people, not to just kill the baby at birth. We decided to make sure that we pass it through second reading and then, we subject it to your scrutiny and that’s what we are doing because the way it works in the National Assembly is that if a bill is submitted, and that bill does not pass through second reading, it can no longer be presented in the life of that Assembly.
“It was important that we pass the second reading and allow you to do all this and ask all the questions, discuss and at the end, we come to something agreeable for all of us.
“We would oversight government to make sure that whatever revenue comes in is well utilised.’’
The Senate public hearing continues today, to be followed by the House of Representatives hearing tomorrow.
Finance Minister Edun reiterated that the bills aim to modernise the nation’s tax laws, enhance compliance, broaden the tax base, and create an environment that fosters investments and job creation.
He said the reforms would also provide equity, efficiency and economic growth.
He said: “I thank the National Assembly for its tremendous support, cooperation, collaboration and advice that have been given over the last 20 months or so to His Excellency,President Bola Ahmed Tinubu, and his administration.
“It has made for progress. It has made for the efficiency and speed of legislation in particular from which the economy has benefited.
“I must also say, Mr. President of the Senate, you have indeed, enriched this session by pointing out that the aim of this tax reform and indeed, the aim of President Tinubu and the tax authorities led by the chairman of FIRS is to tax prosperity, to encourage and to engender and to provide the basis for prosperity, which then leads to higher tax revenue.
“Those who are not doing so well will be encouraged by allowing them to keep their resources to reinvest so that they can grow bigger and it is not until they are successful that they will be taxed.
“Likewise, Mr. Senate President, you’ve also pointed out the nexus, the link between government revenue and the provision of key services, economic services, infrastructure and other key drivers of the economy and payment of tax.
“The two are linked and that’s why there is a need now for this all-important reform as part of Mr. President’s Economic Agenda. It’s another bold step, because we are all witnesses to the macro-economics reforms that have been made over the last 20 months or so, and we can all see the progress that has been made, the success that we are witnessing in terms of the economy growing, the reserves growing, inflation stabilising and the budget deficit coming under control and in particular food prices.
“The key objective of these reforms is to modernise our tax laws, enhance compliance, broaden the tax base, and create an environment that fosters investment and job creation.
“So, the reforms will look to provide equity, efficiency, economic growth, and critically today, we’re here to have the feedback from the stakeholders, from the public at large.”
The Finance Committee Chairman, Senator Musa Sani said the reforms were not just about taxation, but about building a fairer, more efficient, and growth-oriented tax system that supports businesses, encourages investments, and improves the lives of Nigerians.
He said: “Many of our existing tax laws are outdated and no longer reflect modern economic realities. Amending these old legislations is both necessary and urgent to create a tax framework that is transparent, predictable, and conducive to economic development.
“We acknowledge concerns about marginalisation, disproportionate sharing, and possible biases in tax administration and revenue allocation.
“However, I assure you that this process will be thorough, inclusive, and guided by the national interest. Our goal is to develop a tax framework that promotes economic prosperity, encourages investment, and strengthens Nigeria’s fiscal sustainability.
“A fair, transparent, and efficient tax system is fundamental to economic growth and national development.
“I met President Bola Ahmed Tinubu (GCFR) two days ago on the tax reform bills and he told me that Mr Chairman, Senate Committee on Finance, go and do the needful.’’
NNPCL GCEO Kyari assured that the entire oil and gas industry was in support of the proposed reforms.
He said: “The proposed tax reform bills, to us in NNPCL, are very necessary enhancement of growth of the economy through more efficient and effective tax collection mechanism.
“As the largest taxpayer in Nigeria, NNPCL has studied the reform bills, and found the proposals to be reasonable and necessary.”
