Nigeria targets $1trillion economy through tax reform bills – Senate Committee chair

The chairman of the Senate Committee on Finance, Sani Musa, has expressed confidence that the proposed tax reform bills before the National Assembly will play a significant role in achieving Nigeria’s ambitious $1 trillion economy target.

Mr Musa, who represents the Niger East Senatorial District, said this on Tuesday during a press briefing at the National Assembly.

The conference was held at the end of the two-day public hearing organised by the committee on the four tax bills.

The four bills are – The Nigeria Tax Bill 2024, The Nigeria Tax Administration Bill 2024, The Nigeria Revenue Service Establishment Bill 2024 and the Joint Revenue Board Establishment Bills 2024.

Mr Musa said President Bola Tinubu’s administration has set a clear vision for economic growth, and tax reforms will serve as a significant pillar in realising this goal.

“When you look at advanced economies, Mr President has said that he wants to see Nigeria having a $1trillion economy, and this is the beginning of it. For us to do it, we must do it in a way that is not only during the time of Mr President,” he said.

He further assured Nigerians that the National Assembly is committed to passing a tax reform bill that will serve the current administration and remain relevant for future governments.

“Mr President is only going to stay for likely eight years. And after eight years, there will be another government. So, we want a law that will outlive anybody there, even iwe making the law. At the end of the day, we are going to be the ones also that will have to follow what we have led.

“So I think it’s not about who presents, it’s about what Nigerians will see as a true reflection of what it should be,” he said.

Stakeholders engagement

Addressing concerns about public participation in the legislative process, Mr Musa noted that the committee had considered the memoranda submitted during the hearing.

He disclosed that most stakeholders at the hearing expressed views aligned with the proposed tax reform bills, while a few had differing opinions.

“You were all present at the hall there, and you saw how the proceedings went, and I can say everything was going seamlessly and smoothly because everyone that was in attendance, that wanted to speak was given the opportunity to speak. And we have seen a lot of people that spoke in alignment with what Mr President has presented to the National Assembly.

“Also, a few of them that have some divergent opinions have also presented their case, and we are going to consider everyone that was there. So, it’s not going to be a problem. We are going to give this country legislation that is workable,” Mr Musa stated.

FIRS applauds tax reform initiative

Meanwhile, during the second day of the public hearing, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, expressed appreciation for the broad support shown by stakeholders for the proposed tax reform bills.

He also commended the Senate leadership, particularly Senate President Godswill Akpabio and the finance committee, for conducting an inclusive and well-organised public hearing that allowed Nigerians to express their views.

“My word in this remark is a word of appreciation. First, to the courageous and visionary President Bola Tinubu for conceptualising the bills that, when passed into law, will transform Nigeria’s economic landscape.

“I also thank the President of the Senate, Senator Godswill Akpabio, the Senate Leadership, the entire Senate and in particular the finance committee chaired by Senator Sani Musa for well organised public hearing on the tax reform bills and platform, given Nigerians to express their support for it.

“All the stakeholders who made submissions on the proposed laws largely in support of the planned reform are well appreciated. FIRS, thank you all for paving the way for the tax reform bills to see the light of the day “, he said.

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Broad participation

The second and final day of the public hearing featured presentations from critical stakeholders, including the National Supreme Council for Islamic Affairs (NSCIA), the Manufacturers Association of Nigeria (MAN) and the Trade Union Congress (TUC).

These groups provided insights and recommendations on the proposed tax laws. They discussed the need for a balanced approach that fosters economic growth while ensuring a fair and efficient tax system.

With the stakeholders’ submissions, there is a high tendency that the bills will pass third reading at both chambers of the National Assembly.

Once the bills are passed into law, they are expected to enhance revenue generation, improve tax compliance, and create a more business-friendly environment, all of which are crucial for Nigeria’s journey toward a $1 trillion economy.