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Four months after forwarding the tax reform bills to both Chambers of the National Assembly for consideration and subsequent passage, President Bola Ahmed Tinubu has urged the Senate to give him workable laws from the legislative proposals.
This is as various stakeholders in the polity threw their weights behind the hitherto contentious bills at the public hearing conducted by the Senate Committee on Finance Monday in Abuja.
For instance, the Arewa Think Tank, led by the convener, Muhammad Alhaji Yakubu, debunked insinuation that the northern part of the country was against the proposed laws.
The bills are (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.
Announcing Tinubu’s plea at the public hearing, Chairman Senate Committee on Finance Sani Musa (Niger East) said: “I met President Bola Ahmed Tinubu (GCFR) two days ago on 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 the House of Representatives in October last year. That request by Mr President came at a very auspicious time of this public hearing on the tax reform bills which are not meant to add burden to any section of the country or give undue advantage to any section as well.”
There were strident oppositions against the bills last year by various interest groups, thus making it difficult for the House of Representatives to pass it for second reading while the Senate managed to do so on the 28th of November 2024.
However, at the public hearing declared open by President of the Senate Godswill Akpabio, all oppositions against the bills melted out as stakeholders took turns to throw their weights behind the proposed laws.
…Edun
In his submissions, Minister of Finance and Coordinating Minister of the Economy Wale Edun said the proposed laws were not aimed at taxing poverty but prosperity .
“The tax reform bills, as repeatedly explained at different fora since their introduction last year, are for modernization of our archaic tax laws towards effecting efficiency, equity and economic growth,” he said.
Similarly, the Group Chief Executive Officer ( GCEO ) of the Nigerian National Petroleum Company Limited ( NNPCL) , Mele Kyari , said the entire oil and gas industry was well disposed to the reform.
“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 tax payer in Nigeria, NNPCL has studied the reform bills and found the proposals to be reasonable and necessary,” he said.
Toeing similar line in his own presentation, the Chairman of Revenue Mobilisation Allocation and Fiscal Commission ( RMAFC), Mohammed Shehu, made a U- turn from his earlier stance on the bills by supporting them 100%.
He said: “RMAFC is in support of the proposed tax reform but wants adjustments in the area of Value Added Tax (VAT) distribution to sub nationals.
“We hope that the proposed reform will address the issue of endless revenue remittance reconciliation with NNPCL and others.”
In his remarks, the Chairman of Fiscal Responsibility Commission (FRC), Victor Muruako, also supported the proposed reform bills, declaring that they were in tandem with the spirit and letters of the Fiscal Responsibility Act 2007.
…Arewa Think Thank
In their separate presentations, the convener of Arewa Think Thank , Muhammad Alhaji Yakubu and representative of President of the Supreme Council for Sharia in Nigeria, Professor Mohammed Bello Dogarawa, debunked the insinuation that the North was against the reform bills.
Specifically, Yakubu said: “It is not true that the North is against the tax reform bills. We have seen the benefits and sensitized our people in the North on them.”
…Akpabio on challenges
Earlier in his remarks before declaring the public hearing open, the President of the Senate said: “The challenge before us transcends the simple act of 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.”
Other critical stakeholders like the Executive Chairman of Federal Inland Revenue Service ( FIRS), Mr Zacch Adedeji, Governor of the Central Bank of Nigeria(CBN), Yemi Cardoso, the Comptroller- Generals of Nigeria Customs Service(NCS) and Nigeria Immigration Service(NIS) will Tuesday take their turns at the public hearing.
…Our stance – ACF
Meanwhile, the Arewa Consultative Forum (ACF) has submitted its recommendations on the Executive Tax Reform Bills to the National Assembly, highlighting concerns and proposing adjustments aimed at ensuring fairness and efficiency in Nigeria’s tax system.
The forum said its submission followed a comprehensive review conducted by a special committee of experts set up by its Board of Trustees to examine the potential impact of the reforms.
The ACF emphasised that the proposed reforms would affect all regions of the country and not just the North.
A statement Monday by the National Publicity Secretary of ACF, Prof. Tukur Muhammad-Baba, said copies of the report had been shared with the Forum of Northern State Governors, traditional rulers, northern interest groups, relevant government agencies, and other stakeholders. Electronic copies were also made available to the public and the press.
Among the key recommendations, the ACF called for the retention of the current 7.5 percent Value Added Tax (VAT) rate, citing the economic hardships faced by citizens and businesses.
It also suggested improving VAT collection efficiency, formalising the informal sector, and using digital technology to expand the tax base while encouraging private sector investment.
The forum recommended that VAT on agricultural equipment be scrapped and suggested changing the terms “supply and supplies” in Chapter 6 of the Tax Administration Bill to “consumption or consumptions.”
The forum also urged “the clear definition of derivation with revenue distribution decided through consultations with states, local governments, and the Revenue Mobilisation and Fiscal Commission (RMFC).”
They further proposed that all small towns and major cities should name their streets and number houses to make taxpayers more traceable. It also recommended “setting annual upper limits on tax exemptions and waivers.”
The forum raised concerns over the concentration of power in the hands of the Chief Executive Officer and Chairman of the Board of Directors of the Joint Revenue Board.
Instead, it suggested appointing six Executive Directors representing federal character, nominated by the President and confirmed by the Senate, to replace the proposed eight coordinating directors.
The ACF also called for the retention of funding for TETFUND and NITDA through a restructuring of Section 69 of the proposed Nigeria Tax Bill, proposing a Development Levy to be shared with NASENI and the Education Loan Fund.
The forum recommended replacing the term “ecclesiastical” with “religious” throughout the bills and removing Section 4(3) of the Tax Bill, leaving such matters to Sharia and customary laws. It also proposed allowing tax returns and account records to be prepared in local languages, not just English.
Prof. Muhammad-Baba however urged stakeholders to engage fully in the public hearings organised by the relevant National Assembly committees to ensure the emergence of robust laws that would serve the national interest.
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