ABUJA, Nigeria (VOICE OF NAIJA) – President Bola Tinubu has opted to keep the tax reform bills before the National Assembly in place, despite the National Economic Council’s (NEC) recommendation to withdraw them for further consultation.
The NEC, chaired by Vice President Kashim Shettima and composed of the 36 state governors, had advised that the bills be revisited to address various concerns.
However, President Tinubu believes the legislative process currently underway offers an opportunity for input and necessary modifications without halting progress.
The President made this known in a statement through Special Adviser to the President on Information & Strategy, Bayo Onanuga, on November 1, 2024.
Tinubu acknowledge the efforts of the NEC, especially the contributions of Vice President Shettima and the governors, expressing his commitment to the legislative review process and urged the Council to allow it to run its course.
He also welcomed further consultations with key stakeholders to address reservations surrounding the proposed tax changes, which are part of his broader economic reform agenda.
The tax reform bills, initiated through the Presidential Committee on Tax and Fiscal Policy Reform established in August 2023, aim to streamline Nigeria’s tax administration and bring it in line with global best practices.
The Committee, having engaged with a wide range of societal stakeholders over the past year, produced four bills intended to overhaul the country’s tax framework and reduce complexity for businesses and individuals.
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The statement also outlined the key components of the proposed reforms:
• Nigeria Tax Bill: This bill targets the elimination of multiple taxation, aiming to simplify tax obligations across the nation, thereby enhancing Nigeria’s competitiveness.
• Nigeria Tax Administration Bill (NTAB): It proposes a unified system for tax administration across federal, state, and local levels to ease compliance and increase government revenue.
• Nigeria Revenue Service (Establishment) Bill: This would rebrand the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS), broadening its mandate to represent the federation as a whole.
• Joint Revenue Board Establishment Bill: This bill seeks to replace the Joint Tax Board with a Joint Revenue Board covering all federal and state tax authorities and establishing an Office of Tax Ombudsman for dispute resolution.
The reforms also focus on consolidating existing taxes—such as Company Income Tax, Personal Income Tax, Capital Gains Tax, and others—into a unified structure, aimed at reducing administrative overlap and increasing efficiency.
President Tinubu emphasized the importance of these reforms in strengthening Nigeria’s economy and improving the environment for businesses and investments.
He also reaffirmed his respect for the NEC’s advisory role on economic matters, reiterating his readiness to consider the Council’s recommendations in the ongoing dialogue on tax policy reform.
The tax reform bills mark a significant step toward reducing administrative fragmentation and achieving a coordinated tax system that aligns with Nigeria’s national development goals.