•harps on improved compliance, reduce reliance on borrowing
The Speaker of the House of Representatives, Tajudeen Abbas on Wednesday disclosed that the leadership of the House has commenced a series of engagements with the relevant stakeholders to address the concerns raised on the four tax reform bills forwarded to the National Assembly by President Bola Ahmed Tinubu.
Some of the stakeholders that the Speaker personally engaged so far included State Governors, Caucus leaders, among others.
Speaking while delivering the votes of thanks during the presentation of the 2025 budget to a joint session of the National Assembly by President Tinubu, the Speaker noted that Nigeria needs “comprehensive tax reforms to broaden our tax base.”
Speaker Abbas noted that the House, and indeed the National Assembly, would ensure equity and the protection of vulnerable Nigerians.
He said: “Nigeria’s low tax revenue also remains a major constraint. Our tax-to-GDP ratio, currently at approximately 10.9 per cent for 2024, is among the lowest in Africa, significantly below the continental average of 15.6 per cent. In comparison, South Africa’s tax-to-GDP ratio stands at 25.4 per cent, while Rwanda and Ghana, with much smaller populations, report ratios of 15.1 per cent and 14.1 per cent, respectively.
“Even our VAT collection efficiency – at approximately 20 per cent – is notably below the near 70 per cent efficiency achieved by South Africa, Equatorial Guinea, and Zambia.”
Speaker Abbas affirmed that: “addressing these challenges requires urgent and comprehensive tax reforms to broaden our tax base, improve compliance, streamline administration and reduce reliance on borrowing.”
Speaker Abbas, therefore, expressed the readiness of the National Assembly to work with the Tinubu administration towards achieving the required reforms.
He stated: “The National Assembly will continue to work with your administration to ensure that such reforms are equitable, effective, and considerate of the needs of vulnerable populations.
“To this end, we have engaged stakeholders to address concerns raised on the tax reform bills, fostering trust and cooperation. I have personally led numerous high-level meetings and consultations with state governors and other key stakeholders on this issue, achieving positive outcomes.”
The Speaker also noted that the reforms by the Tinubu administration have “disrupted the status quo, sparking resistance from vested interests.”
He added: “Yet, these courageous measures underscore your resolve to prioritise the welfare of Nigerians.”
However, Speaker Abbas pointed out that: “The National Assembly stands ready to support these reforms through legislative backing and to facilitate public engagement for greater understanding and acceptance.”
The Speaker noted that collaboration between the arms of the government remains essential to achieving the shared objectives.
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