The Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen, has emphasized the need for fair and transparent taxation in Nigeria to avoid overburdening individuals and businesses. He made this statement during an interactive session on Tax Reform Bills held in Abuja on Monday, organized by the House of Representatives.
The session, titled “The People’s House Interactive Session on Tax Reform Bills,” brought together key stakeholders from public and private sectors, including Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee; Mr. Zach Adedeji, Chairman of the Federal Inland Revenue Service (FIRS); and Mr. Tanimu Yakubu, Director-General of the Budget Office, among others.
Tax Reform Bills Under Scrutiny
Speaker Abbas assured attendees that the House would carefully consider the Federal Government’s proposed Tax Reform Bills with the best interests of Nigerians in mind. He welcomed the ongoing debates surrounding the bills, calling them a healthy aspect of democratic governance.
Highlighting the goals of the bills, Abbas stated that they aim to diversify Nigeria’s revenue base, promote equity, and create an environment conducive to investment and innovation. However, he stressed that lawmakers must assess the potential implications of these reforms to ensure they are fair and beneficial for all segments of society.
“Taxes should be fair, transparent, and justifiable,” the Speaker said. “They must balance the need for public revenue with the burdens they impose on individuals and businesses.”
Abbas added that the House would ensure the bills align with the 1999 Constitution (as amended) and serve the interests of Nigerians. He emphasized that lawmakers have not yet taken a definitive stance and would thoroughly scrutinize the proposals to identify areas needing amendments or clarification.
Addressing Nigeria’s Low Tax-to-GDP Ratio
The Speaker lamented Nigeria’s low tax-to-GDP ratio of 6 percent, which is significantly below the global average and the World Bank’s minimum benchmark of 15 percent for sustainable development.
“Nigeria must address its low tax-to-GDP ratio to reduce reliance on debt financing and ensure fiscal stability,” Abbas stated. “Taxes are the foundation of public revenue in modern societies, and we need to secure a stable future for our nation.”
Stakeholders Reassure Nigerians
Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, reassured Nigerians that the proposed reforms are in the nation’s best interest, particularly for states and local governments. He noted that the reforms aim to foster fiscal stability and economic growth without imposing undue hardship.
The session underscored the importance of collaborative efforts to refine the tax system, ensuring it supports businesses and promotes economic sustainability in Nigeria and across Africa.
