National
Tax reform bills and National Assembly’s quest for improved tax system
By Kingsley Okoye, News Agency of Nigeria (NAN)
Since the recent introduction of four tax reform bills by the executive arm, the National Assembly has taken a significant step toward contributing significantly to the latter’s quest to revolutionalise the country’s tax system.
Over the years, many tax experts, who have subjected Nigeria’s tax system to analysis, have been unanimous in their conclusion that it fraught with a myriad of challenges.
Some of the challenges, according to them, centre on issues of multiple taxation as well as tax evasion and avoidance, among others, all of which have, no doubt, inhibited optimal functioning of the country’s tax administration.
It is also believed that the tax system has become so complex, thus stifling growth and unable to generate the required revenue for development, as obtainable in other climes.
Tax experts and analysts are of the belief that the lack of optimal performance of the country’s tax regime is not unconnected to policy inconsistency, obsolete and ambiguous tax laws as well as weak and fragmented revenue administration.
It was, therefore, in his apparent move to drive the needed tax reforms that President Bola Tinubu presented four bills to the national assembly for consideration.
The bills are aimed at overhauling the complex and challenging tax regime, with the goal of promoting a more efficient and effective tax system that will enhance economic growth and development, improve revenue expansion and ultimately reduce the tax burden on the populace.
Needless to say that frantic efforts had been made by successive administrations to address the challenges inherent in the tax system, including amendment of the erstwhile tax laws and other fiscal instruments.
For instance, the Value Added Tax (VAT) was, in 2020, increased from five per cent to 7.5 per cent, while the Capital Gains Tax (CGT) Act was amended to remove the outright exemption on the sale of shares and the Tertiary Education Tax (TET) increased.
However, all these appeared not to have yielded the desired result, thus necessitating the recent introduction of the tax reform bills by the Federal Government.
Expectedly, the tax reform bills elicited national discourse, with critical stakeholders expressing divergent opinions.
While some stakeholders such as the Governors’ Forum, traditional institution, civil society organisations, politicians and other interest groups described the bills as ill-timed, given the current economic realities, others, however, said that the new tax regime was necessary to create a wider tax net in the overall interest of the country.
The Chairman of Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, while defending the bills, said they were designed to address the current fiscal challenges and lay a sustainable foundation for Nigeria’s economic growth and development.
Oyedele said that the present state of the country’s economy had necessitated the comprehensive tax reforms to improve revenue collection, create a favourable business environment and address poverty.
According to him, the proposed reforms will also alleviate the existing tax burden on the low income earners and ensure that wealthier individuals and corporate organisations contribute fairly to government revenue.
Oyedele said that the reforms would equally simplify the tax structure, reduce the number of taxes, make compliance easier for businesses and individuals and increase the overall tax revenue.
He, however, stressed the need for building trust between government and citizens in order to ensure tax compliance, thus resulting in the planned establishment of a Tax Ombudsman.
Oyedele further stated that the tax reforms would engender a more equitable distribution, based on consumption in each state of the federation.
Also, the Chairman of Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji, allayed the fears being expressed by a section of Nigerians on possible introduction of new taxes through the new tax regime.
The essence of the bills, he said, was to stimulate the economy, saying that President Bola Tinubu’s intention is not to tax poverty but prosperity, not to tax production but consumption.
“This is the beginning of Mr President’s commitment to fulfilling this so that we can have a solid foundation that will lead to the prosperity of this country,” Adedeji had said.
Deputy President of the Senate, Sen. Barau Jibrin, however, attributed the heat generated by the transmission of the bills to the national assembly on lack of proper understanding by the critics.
Barau pointed out that the bills were quickly passed for a second reading to allow the public to make comments and inputs.
“Nobody will do something that will harm his people. We must first have a grasp of the bills before they would be understood.
“That was why it was sent to the committee to review so that we can know the situation. We will also invite experts to go through it, but we have not gotten to that level now,” the senator said.
President of the Senate, Godswill Akpabio, also commended the president for the tax reform initiative, saying that it represented a monumental shift in the country’s fiscal landscape.
“It is disheartening that those who have not taken time to understand these bills are the loudest critics. I urge all Nigerians, especially those in public office, to engage with these vital reforms thoughtfully,” he said.
According to him, the initiative marks the first comprehensive tax reform since Nigeria’s independence, presenting a transformative opportunity for rejuvenating small and medium enterprises and enhancing the livelihoods of ordinary Nigerians.
“These reforms will not only improve Nigeria’s revenue profile but also create a more conducive and internationally competitive business environment, transforming our tax system to support sustainable development,’’ he had said.
Lending support to the tax reform bills, Speaker of the House of Representatives, Tajudeen Abbas, said Nigeria’s current low tax revenue remains a major constraint to national growth.
Abbas said that Nigeria’s tax-to-GDP ratio stood at 10.9 per cent in 2024, saying that it was among the lowest in Africa and was below the continental average of 15.6 per cent.
He said that addressing the challenges required urgent and comprehensive tax reforms to broaden the tax base, improve compliance, streamline administration and reduce reliance on borrowing.
Abbas said that the national assembly had engaged stakeholders to address the concerns raised on the bills in order to foster trust and cooperation.
As the national assembly continues to consult Nigerians to enhance better understanding of the need for the new tax regime, many tax experts believe that the country stands to reap the gains of a modernised tax system, with increased revenue, improved compliance and a more business-friendly environment.
They are also of the opinion that Nigeria will experience an unprecedented economic growth and development if the bills are allowed to scale through and become law.
According to them, the bills will address the challenges of a multi-layered taxation, consolidate the various legal frameworks relating to taxation and expand the country’s tax base.
It is also believed that the new tax reforms will promote generation of sustainable revenue streams for national development, address the complexities of the current tax system and enhance tax compliance.
Political watchers are, however, of the view that for the reforms to gain the confidence of vast majority of Nigerians, government must address issues related to wasteful and frivolous expenditure at all levels of government, stating that the revenues collected should be used expended on projects that would impact the citizens positively.
Efforts, they said, should also be made to address the concerns of all the interest groups so as to remove their doubts on the good intentions behind the bills.
As Nigerians await further legislative inputs on the bills after the ongoing nationwide consultations, concerned interest groups should be ready and prepared to make their inputs at the public hearing being proposed by the national assembly. This will surely do the country and its citizens more good. (NANFeatures)
**If used, please credit the writer and News Agency of Nigeria (NAN)
A group of lawyers under the banner of the Guardian of Democracy and Rule of Law staged a massive protest at the Federal Ministry of Finance in Abuja on Monday, demanding a judicial inquiry into the tenure of Mele Kolo Kyari, the former Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPCL).
The protesters, led by Barrister Benjamin Theophilus, submitted a petition alleging widespread corruption, tax evasion, abuse of office, and misappropriation of public funds during Kyari’s leadership.
The petition highlighted several contentious issues, including inflated costs of refinery rehabilitation contracts, fraudulent crude oil allocations, mismanagement of the AKK Gas Pipeline Project, fuel subsidy fraud, and questionable crude-backed loans.
According to the petition, NNPCL under Kyari spent over $4 billion on rehabilitating the Port Harcourt, Warri, and Kaduna refineries, far exceeding an initial private-sector proposal of $1 billion for all three facilities.
“Kyari is alleged to have collaborated with consultants and contractors to conceal the actual cost of contracts and evade taxes,” the petition stated, noting that the refineries remain inefficient despite the expenditure.
The lawyers also accused Kyari of overseeing the diversion of crude oil allocations under the pretext of “pipeline security” at a rate of 80,000 barrels per day, with no transparent accountability mechanisms.
The $5 billion AKK Gas Pipeline Project was similarly flagged for irregularities in contract awards and execution, with little progress despite significant funding.
Further allegations include fuel subsidy fraud, with NNPCL reportedly increasing petroleum imports in 2020 during a global decline in fuel consumption due to the COVID-19 pandemic.
The petition also criticised crude-backed loans totalling $21.565 billion since 2019, which it claimed disadvantaged Nigeria by ceding trading profits to international traders.
The protesters called for a judicial commission to investigate Kyari’s tenure, probe payments to refinery contractors, and examine past audit failures.
They also urged the Federal Inland Revenue Service (FIRS) to investigate suspected tax evasion and fraudulent declarations, while advocating for the recovery of any misappropriated public funds.
The Federal Ministry of Finance has yet to respond to the petition, and NNPCL officials were unavailable for comment at the time of reporting.
The blue economy presents a huge opportunity for Nigeria’s economic transformation, especially in the area of marine tourism, Minister of Art Culture, Tourism and Creative Economy, Hannatu Musawa has said.
Musawa noted that sustainable tourism development within our coastal areas can drive investment, create jobs, and showcase the country’s rich cultural heritage, positioning Nigeria as a leading destination for eco-tourism in Africa and beyond.
She made the disclosure while delivering her keynote address at the seminar on the Development of National Blue Economy and Coastal Biodiversity in Tourism.
The gathering brought together stakeholders, experts, and policymakers to deliberate on how best to harness the potential of our coastal and marine resources while ensuring their sustainability for future generations.
The minister who was represented by Mr Sunday Mkpejie Bisong, Assistant Director Overseeing Domestic Tourism Promotion Department, explained that Nigeria, as a nation, is blessed with an extensive coastline, rich marine biodiversity, and vibrant coastal communities.
She said: “Nigeria, as a nation blessed with an extensive coastline, rich marine biodiversity, and vibrant coastal communities, stands to benefit significantly from a well-structured blue economy.
“As we seek to diversify our economy beyond oil and gas, the blue economy presents enormous opportunities for economic transformation, particularly in sectors such as marine tourism, fisheries, aquaculture, maritime transportation, and renewable energy. Sustainable tourism development within our coastal areas can drive investment, create jobs, and showcase our rich cultural heritage, positioning Nigeria as a leading destination for eco-tourism in Africa and beyond.
“Our coastal ecosystems, including mangroves, coral reefs, estuaries, and beaches, serve as vital habitats for marine species and are essential for the livelihoods of millions of Nigerians. Preserving this biodiversity is not just an environmental necessity; it is also an economic imperative. A thriving marine environment enhances the tourism experience, attracting both local and international visitors who seek pristine beaches, water-based recreational activities, and cultural interactions with indigenous coastal communities.”
While lamenting the impact of degradation of the ecosystem on the blue economy, the Minister stressed that the country stands to benefit significantly from a well-structured blue economy.
Musawa explained that the sure way forward is for adoption of a holistic approach to conservation and sustainable tourism development, integrating policies that balance economic growth with environmental stewardship.
She said: “The degradation of these ecosystems due to pollution, climate change, and unsustainable fishing practices poses a serious threat to their economic and ecological value.
“It is therefore imperative that we adopt a holistic approach to conservation and sustainable tourism development, integrating policies that balance economic growth with environmental stewardship.”
The Minister also gave the assurance that the ministry in collaboration with other relevant ministries and agencies, “is committed to harnessing the full potential of the blue economy while safeguarding our coastal biodiversity. “
She also noted that now is the time to act, saying “Distinguished guests, the blue economy and coastal biodiversity are not just policy concepts but lifelines for sustainable economic growth, environmental preservation, and tourism development.
“The time to act is now. We must work collectively—government, private sector, academia, and civil society—to unlock the potential of our marine resources in a way that benefits our economy while protecting the environment for future generations.
“Let this seminar serve as a platform for meaningful discussions, innovative solutions, and collaborative partnerships that will drive Nigeria’s blue economy forward. I encourage all stakeholders to take actionable steps towards implementing sustainable tourism practices that respect and preserve our coastal biodiversity.”
In his welcome address, the Permanent Secretary Mrs. Akudo-Nwosu said the seminar represented a collective effort towards unlocking the country’s coastal and marine resources.
The Permanent Secretary who was represented by Mr. Tony Ukpoju, Assistant Director, said “Today’s gathering marks a significant step in our collective efforts to unlock the immense potentials of Nigeria’s coastal and marine resources, while ensuring the sustainability of our rich biodiversity. The Blue Economy represents a frontier of economic opportunity—encompassing tourism, fisheries, marine transport, and renewable energy—offering avenues for inclusive growth, job creation, and environmental conservation.
“As a nation endowed with an extensive coastline and vibrant coastal communities, it is imperative that we strategically position tourism as a key driver in the Blue Economy framework. Our coastal biodiversity is not only a natural treasure but also a catalyst for cultural expression, eco-tourism, and heritage preservation.”
The National Drug Law Enforcement Agency (NDLEA) said it has intercepted 589 bags of Canadian Loud, a strong strain of cannabis, worth N1,042,500,000 only in street value in a Lagos hotel.
It said the illicit drug, with a total weight of 417.3 kilograms, was seized during an operation in the 80-room hotel in Victoria Island, which it said was used as cover for distributing illicit substances.
It disclosed that no fewer than three were arrested in the course of the operation at the five-storey hotel building between Friday April 25 and Saturday April 26, 2025, while two other suspects were currently at large.
The NDLEA, in a statement by its Director, Media and Advocacy, Femi Babafemi, explained that the items suspected to be proceeds of illicit drug trade recovered from the hotel included a Toyota Prado Landcruiser SUV, Toyota Sienna, Volkswagen Delivery Van, Kia Ceranto, Grand Caravan Dodge, 74 new TV sets, 10 used TV sets, and 13 refrigerators, among others.
It further disclosed that the agency intercepted over two million pills of tramadol in Kano and Jigawa states.
The NDLEA explained that its operatives, acting on intelligence, on April 23 seized consignments of opioids being moved from Kano to the Niger Republic and Yobe State, through Jigawa.
It noted that the psychoactive substances were being moved in a Toyota Sienna vehicle at about 2:30 am along Kano- Ringim Road, Gumel town, when anti-narcotic officers on patrol intercepted them and arrested two suspects.
Recovered from the Sienna vehicle were 200,000 pills of 250mg of tramadol and 217,500 capsules of pregabalin.
“A swift follow up operation in Kano led to the arrest of the supplier at his residence located at Mil Tara, Layin Technical area of Kano, while additional 1,584,000 pills of 250mg of tramadol stacked inside a Nissan 18-seater bus and a room in his house were discovered and evacuated.
“This brings the total number of the recovered opioids to 2,001,500 pills,” the statement read in part.
According to the statement, another shipment of 46 wraps of cocaine weighing 547 grams hidden in body cream bound for the Middle East country, was intercepted at a courier firm in Lagos on April 23.
It said the seizure came barely a week after NDLEA officers of the Directorate of Operations and General Investigation (DOGI) uncovered 20 parcels of cocaine concealed inside religious books bound for Saudi Arabia at a logistics company in Lagos.
It also said another consignment intercepted the same day included 1.8kg pentazocine injection and 60 grams bromazepam tablets heading for Canada.
Babafemi, in the statement, further disclosed that three Ghanaian ladies were on arrested on April 20 at the Gbaji checkpoint, at the Seme border area of Badagry, Lagos, by NDLEA operatives while attempting to smuggle 4.8kilograms of Ghana Loud, a strong strain of cannabis into Nigeria.
“While commending the officers and men of DOGI, Lagos, Kano, Jigawa, Edo and Seme commands of the agency for the arrests and seizures of the past week, the Chairman/Chief Executive Officer of the NDLEA, Brig. Gen. Mohamed Buba Marwa (retd.) equally praised their counterparts in all the commands across the country for ensuring a fair balance between their drug supply reduction and drug demand reduction efforts,” he added.