Four months after forwarding tax reform bills to both chambers of the National Assembly for consideration and passage, President Bola Tinubu has urged the Senate to provide him with workable laws from the proposals.
Various stakeholders rallied behind the previously contentious bills during a public hearing conducted by the Senate Committee on Finance in Abuja on Monday. The Arewa Think Tank, led by convener Muhammad Alhaji Yakubu, dismissed claims that the northern region opposed the proposed laws.
President Tinubu’s request for workable laws from the bills—(i) The Nigeria Tax Bill 2024, (ii) Nigerian Tax Administration Bill 2024, (iii) Nigeria Revenue Service Establishment Bill 2024, and (iv) Joint Revenue Board Bill 2024—was disclosed by the Chairman of the Senate Committee on Finance, Senator Sani Musa (Niger East), during his remarks at the hearing.
“I met President Bola Ahmed Tinubu two days ago regarding the tax reform bills, and he told me, ‘Mr Chairman, Senate Committee on Finance, go and do the needful. Give me a law that is workable from the tax reform bills I forwarded to the Senate and House of Representatives in October last year.’
“That request from Mr President comes at a most appropriate time for this public hearing on the tax reform bills, which are not designed to burden any section of the country or grant undue advantage to others,” he said.
It will be recalled that various groups strongly opposed the bills last year, delaying their passage in the House of Representatives. While the Senate managed to pass them for second reading on 28 November 2024, resistance persisted.
However, during the public hearing, declared open by Senate President Godswill Akpabio, opposition to the bills dissipated as stakeholders one after another voiced their support.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, was the first to make a submission, emphasising that the proposed laws were not intended to tax poverty but to encourage prosperity.
“The tax reform bills, as repeatedly explained since their introduction last year, aim to modernise our archaic tax laws to enhance efficiency, equity, and economic growth,” he said.
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, NNPCL, Mele Kyari, also endorsed the reforms, stating that the oil and gas industry viewed them as a necessary step for economic growth.
“The proposed tax reform bills are a crucial enhancement for economic growth through a more efficient and effective tax collection mechanism.
“As Nigeria’s largest taxpayer, NNPCL has studied the reform bills and found the proposals both reasonable and necessary,” he said.
Similarly, the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, Mohammed Shehu, who had initially opposed the bills, made a U-turn and declared his full support.
“RMAFC supports the proposed tax reforms but recommends adjustments in the area of Value Added Tax (VAT) distribution to sub-nationals.
“We hope the reforms will address the issue of endless revenue remittance reconciliation with NNPCL and other entities,” he stated.
The chairman of the Fiscal Responsibility Commission, Victor Muruako, also endorsed the proposed reforms, asserting that they align with the spirit and provisions of the Fiscal Responsibility Act 2007.
Addressing concerns about regional opposition, Muhammad Alhaji Yakubu, convener of the Arewa Think Tank, and Professor Mohammed Bello Dogarawa, representative of the President of the Supreme Council for Sharia in Nigeria, debunked claims that the North was against the bills.
“It is untrue that the North opposes the tax reform bills. We have assessed their benefits and have sensitised our people accordingly,” Yakubu stated.
In his remarks before declaring the hearing open, Senate President Akpabio emphasised the importance of building a tax system that fosters development and national growth.
“The challenge before us transcends merely passing new laws; it is about constructing a tax system that inspires confidence, promotes development, and fuels national growth.
“We cannot afford to be fragmented in our approach to revenue generation. Instead, we must come together—Federal, State, and Local Governments, alongside the private sector and civil society—to create a tax system that truly works for all,” he said.
Other key stakeholders, including the Executive Chairman of the Federal Inland Revenue Service, FIRS, Zacch Adedeji, the Governor of the Central Bank of Nigeria, Yemi Cardoso, and the Comptroller-Generals of the Nigeria Customs Service and Nigeria Immigration Service, are expected to present their remarks at the session on Tuesday.
