Nigerians have called on the National Assembly to consider concerns raised by individuals, organizations, and the private sector before passing the proposed tax reform bills. Stakeholders emphasized the need for lawmakers to carefully review and incorporate public feedback gathered during the recent hearings on the bills.
The National Assembly concluded its public hearing on the four tax reform bills on Friday. While lawmakers have pledged to prioritize public input, there remains skepticism over whether the legislative body will genuinely reflect citizens’ concerns before finalizing the legislation.
Public Hearing and Stakeholder Concerns
The stakeholders’ engagement, which commenced on Monday with the Senate Committee on Finance hosting multiple government agencies, ended at the House of Representatives. Speaker Tajudeen Abbas reassured Nigerians that public input would be considered as the parliament finalizes the bills.
The four tax bills—Nigeria Tax Bill 2024, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill—were submitted to the National Assembly in October 2024 by President Bola Tinubu. These bills follow the recommendations of the Presidential Taskforce on Fiscal Policy and Tax Reforms, led by Taiwo Oyedele.
Although the bills faced minimal resistance in the Senate and passed the second reading swiftly, the House of Representatives initially resisted, insisting on broader consultation in line with the National Economic Council’s recommendations.
A compromise was reached in January 2025 after discussions between the Nigeria Governors’ Forum and the tax reform committee. A key outcome was an agreement on a fairer Value Added Tax (VAT) distribution formula—50% based on equality, 30% on derivation, and 20% on population.
Despite these revisions, many stakeholders continue to raise concerns, urging the National Assembly to reassess the bills in light of Nigeria’s economic realities and the well-being of its citizens.
Key Areas of Concern
One of the most debated aspects of the bills is the proposed VAT increase, which is programmed to occur every two years. The Congress of University Academics (CONUA) strongly opposed this provision, urging the government to maintain the current 7.5% VAT rate and instead broaden the tax base by including more taxable items.
Speaking with newsmen Senior Advocate of Nigeria Mike Ozekhome warned that ignoring public input would be a disservice to the country. “In Nigeria, a country that is virtually a crime scene, nothing is impossible. But it will be a great disservice to Nigerians if their voices regarding this sensitive matter are ignored while the self-serving interests of governors are accepted. That would be a monumental tragedy,” he stated.
Similarly, constitutional lawyer Abdul Mahmud expressed concern that the public hearing might merely be a formality if the National Assembly fails to implement necessary adjustments. “There is a valid concern that the public hearing on the tax bills may amount to little more than a formality due to the perceived compromise of the National Assembly,” he said.
Calls for Transparency and Accountability
Stakeholders have called for greater transparency in the legislative process to ensure that the bills reflect the interests of the Nigerian people. Private sector representatives and civil society groups emphasized the need for tax policies that stimulate economic growth rather than overburden businesses and individuals.
Many industry leaders argue that increasing VAT and other levies without addressing inefficiencies in tax administration would negatively impact investment and job creation. They also warned that higher tax rates could lead to increased inflation, further straining the livelihoods of ordinary Nigerians.
Next Steps for the National Assembly
With mounting pressure, lawmakers are expected to revisit certain provisions of the bills before passage. Speaker Abbas has assured that the House will carefully consider all recommendations, but it remains uncertain how much influence public opinion will have on the final versions.
As the debate continues, Nigerians are watching closely, hoping for a tax reform policy that balances revenue generation with economic sustainability.
The coming weeks will determine whether the National Assembly prioritizes the concerns of its citizens or succumbs to political pressures in the passage of these critical bills.
