Tax Reforms, Long Overdue – Akpabio

. Says 30 Percent of Nigerians don’t pay Tax

ABUJA – The President of the Senate, Senator Godswill Obong Akpabio on Monday said the reform of Nigeria tax system is long overdue because a nation that fails to adapt its revenue system to the realities of our time risks stagnation and decline.

Akpabio speaking at the opening of a two-day public hearing on Tax Reform Bills said the reform is a transformative step forward in the collective journey toward economic renewal and prosperity for all Nigerians.

He said not up to 30 percent of Nigerians are paying even though hundreds percent of Nigerians want good roads, railways and other infrastructures to their villages.

“I don’t think up to 30% of Nigerians pay tax. Yet, everyone wants good services and good governance. This is Nigeria. Nobody believes in the rule of law and nobody believes that tax works.

“Today, we gather at a pivotal moment, one that calls us to reform, modernize, and optimize our tax system. This is not just a task; it is a profound responsibility we must embrace with courage, wisdom, and a steadfast commitment to the Nigerian people. As we look to the future, we must remember that a nation that fails to adapt its revenue system to the realities of our time risks stagnation and decline.

“An old African proverb teaches us: “A bird that does not leave its nest will never know the richness of the forest.” Today, we are choosing to leave behind outdated tax practices and bureaucratic hurdles, spreading our wings toward a tax administration that is robust, transparent, and conducive to business,” he said.

According to him, the Public Hearing represents more than a legislative requirement; it is a call to collective action, a platform for dialogue where lawmakers, tax administrators, businesses, and citizens come together to craft a fair, transparent, and effective tax regime that reflects the interests of all Nigerians.

He said the proposed bills—SB 583, SB 584, SB 585, and SB 586—are thoughtfully designed to harmonize revenue administration across all tiers of government; reduce the cost of tax collection and enhance compliance; foster transparency, accountability, and efficiency in tax administration; introduce digital innovations to simplify tax payments and close loopholes and ensure fairness, protect vulnerable taxpayers, and create an environment ripe for economic growth.

“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.

“I assure you that the 10th National Assembly is fully committed to enacting legislative reforms that will strengthen our economic foundation, empower our businesses, and enhance accountability within our government. The success of this Public Hearing hinges on your active engagement, and I encourage all stakeholders to contribute meaningfully to this dialogue. Let us seize this moment, not just for ourselves, but for future generations, to lay the foundation for a stronger, more resilient, and prosperous Nigeria,” he said.

The minister of finance and coordinating minister for the economy Mr. Wale Edun said there is need now for the reform as part of Mr President’s economic agenda.

According to him, the reform is another bold step by President Bola Ahmed Tinubu because we are all privy to the reforms that have been made over the last 20 months.

“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, the inflation stabilising and the budget deficit being under control, and in particular, food prices.

“So, the real objectives of this reforms is that as the economy grows, we must modernise our tax laws, enhance compliance, broaden the tax base and create an environment that fosters investment and job creation. So the reforms are going to create equity, efficiency, economic growth, and critically today, we are here to have feedback from the stakeholders, from the public at large and that really, is the point of this particular sitting. To ensure that all views are heard and all stakeholders are carried along,” he said.