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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)
Kaduna state Governor Uba Sani declared that the ruling All Progressives Congress (APC) will continue to dominate the state, saying it would soon become a one-party state.
The Governor disclosed that about four members of the House of Representatives from the opposition parties had decamped to the APC, adding that members of the Kaduna State House of Assembly from different zones had also decamped to the party.
Governor Uba Sani, who spoke at Zaria on Monday, argued that the defection of opposition members to the APC “is a good sign, and that shows that we are doing something positive; we are carrying everyone along in Kaduna state.”
House of Representatives Speaker Tajudeen Abbas distributed 117 vehicles, comprising 20 Hilux, 2 ambulances, 20 18-seater buses, 50 Sharon vehicles, and 25 sedan/saloon cars (Golf, Corolla & Peugeot 406). At the same time, 200 tricycles, popularly known as Keke NAPEP, and 1,000 motorcycles were given to various beneficiaries.
At the event, Governor Sani praised Speaker Abbas, saying that Kaduna State and the entire country are proud of his stewardship. He added that the laudable projects he was interested in in the state had his blessings.
In his address, Speaker Abbas thanked his constituents for their continued support and noted that he would do his best to attract people-oriented projects to them.
The Nigerian Bar Association (NBA) says the money received from Rivers state government for the 2025 annual general conference (AGC) was a “gift”.
A statement issued on Monday by Emeka Obegolu, chairman of the AGC planning committee, said the legal body did not sell the hosting rights for the conference.
Earlier, the Rivers government, under the leadership of Ibok-Ete Ibas, the sole administrator, asked the NBA to refund the N300 million allegedly paid for the “hosting rights” of the conference by the state.
The government said if the NBA was truly anchored on principles, it should demonstrate it by returning the money.
The decision of the state government came after the NBA moved the AGC from Port Harcourt in Rivers state to Enugu.
The association premised its decision on “constitutional violations” in Rivers following the declaration of emergency rule in the state by President Bola Tinubu in March.
Responding to the comment of the Rivers government, the NBA said there was no bidding process or payment before the announcement of Rivers as the host of the conference.
The NBA explained that due to the huge cost of organising the conference, the legal body approaches individuals and state governments for “unconditional” support.
“We wish to clarify that the decision to host the 2025 AGC in Port Harcourt was taken in August 2024 and was not subject of any bidding process or payment of any hosting rights,” the statement reads.
“The host city has no hosting right and there is no representation by the NBA that the Conference must be held in a chosen city.
“Traditionally, because of the enormous cost involved in hosting the AGC, NBA Conference Planning Committee approaches organizations, agencies of government and state governments for support and the support requested for is unconditional and not tied to hosting rights or any rights whatsoever.
“Recent NBA conferences have been supported by different state governments, corporate organizations, ministries, departments and agencies whose budgets accommodate corporate social responsibilities and share the same vision with NBA.
“Such financial supports are in the form of gifts, partnerships or sponsorships. The money from Rivers State was a gift and was not tied to any purported hosting right for the NBA AGC.”
An Upper Area Court in Ilorin, Kwara State, on Monday, granted controversial street-pop singer, Habeeb Okikiola, popularly known as Portable, bail in the sum of ₦1 million following his arraignment on multiple charges, including criminal defamation, cyberstalking, and inciting public disturbance.
The bail is conditional upon the provision of two sureties in like sum.
According to the court, one surety must be either the Chairman or Secretary of the Performing Musicians Association of Nigeria (PMAN), while the other must own property within a Government Reserved Area (GRA) in Ilorin, supported by a valid Certificate of Occupancy.
As of press time, the 31-year-old singer remains in custody at the Oke Kura Correctional Centre in Ilorin, having failed to meet the stringent bail requirements.
The charges stem from a petition filed by veteran Fuji artiste, Okunola Saheed, known as Saheed Osupa, who alleged that Portable defamed him during a live Instagram broadcast on 19 March 2025.
Defamation, arrest
In the controversial video, the ‘Zazoo Zeh’ crooner stated, “This man dey try bring down my shine! He be like person wey dey chop snail with shell—him no get sense. Osupa carry tortoise for stomach. When Apple Music and Spotify want to drop money for me, na him remove my song from the platform, make I no see money.”
According to Osupa, Portable’s remarks were defamatory and damaging to his reputation and were intended to incite public hatred and disturb peace. The police, acting on the petition dated March 21, 2025, launched an investigation through the State Intelligence Department.
Elanza news reported that Police spokesperson SP Adetoun Ejire-Adeyemi confirmed in a statement that Portable was arrested on Saturday in Abeokuta, Ogun State, at about 7:25 p.m. He was subsequently transferred to Ilorin for further investigation.
“In view of the weight of these allegations and the supporting evidence presented, the command secured a valid arrest warrant from a Magistrate Court sitting in Ilorin,” said Ejire-Adeyemi.
“Upon his arrival, the suspect’s statement was taken in the presence of legal representatives from both parties.”
The case is documented under First Information Report (FIR) 117(1) CPC. Charges filed against Portable include criminal defamation under Section 392 of the Penal Code, criminal intimidation (Section 397), and inciting disturbance (Section 114). Provisions of Cybercrimes (Prohibition, Prevention, etc.) Act, 2015, and the Violence Against Persons (Prohibition) Law, 2020, were also cited.
ASP Adeniyi James, the investigating police officer, confirmed that the charges were filed based on directives from police authorities.
The presiding magistrate, Sunday Adeniyi, adjourned the matter to 30 April and advised all parties to maintain decorum as the case proceeds.
This is not Portable’s first legal encounter this year. Barely a month ago, he was granted bail in Ogun State after being arraigned on charges of assaulting government officials and obstructing their duties.
Saheed Osupa’s Copyright Claims
Beyond the defamation allegations, the dispute between Portable and Osupa also touches on copyright issues. The rift escalated after the 55-year-old reported one of Portable’s tracks, Fuji Shakushaku, for copyright infringement.
The song, released in 2023, was subsequently taken down from Apple Music and other streaming platforms.
In response, Portable criticised the Fuji veteran in a series of videos, referring to him as “big for nothing.”
The controversial singer later apologised publicly, attributing his outburst to frustration over the song’s removal and resulting financial losses.
Osupa’s management, represented by Digital Music Commerce and Exchange Ltd. (DMCE), issued a statement on 27 March via Fountain Osupa’s official Instagram page.
“We cannot stand idly by while King Saheed Osupa is being disrespected,” the statement read. “DMCE uncovered several artistes’ unauthorised use of King Osupa’s music. While most were resolved amicably, one individual engaged in cyberbullying, attacks, and reputational damage.”
The management reiterated that Osupa is signed to Sony Music Publishing Nigeria and that DMCE is authorised to act on his behalf to protect his intellectual property.
Portable has been involved in several police and court cases in recent years. In 2023, he was charged with assault and theft in Ogun State after allegedly attacking a man. In 2024, he was arrested in Lagos for allegedly failing to pay the full amount for a car he bought, leading to a debt dispute with a car dealer. He was released after meeting bail conditions.
In February 2025, Portable and his team were accused of attacking government officials who came to enforce regulations at his bar in Ogun State. He was charged with assault, obstruction, and having dangerous weapons. After turning himself in, he was granted bail. These cases have added to his reputation for being involved in controversies.