The Nigerian Senate and House of Representatives are poised to commence a 5-days public hearing on the Tax Reform Bills, scheduled for Monday, February 24, and Tuesday, February 25, 2025, at the Senate and from February 26 to Friday, February 28, 2025, at the House of Representatives.
This Executive Bill, introduced by President Bola Ahmed Tinubu, aims to overhaul the nation’s tax system to enhance efficiency and bolster revenue generation.
The reform process has been spearheaded by Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), and Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reform.
Their collaborative efforts have been instrumental in demystifying the proposed changes and effectively communicating their benefits to the public.
Engagement with Stakeholders
In the lead-up to the public hearing, Adedeji and Oyedele have engaged in extensive consultations with a diverse array of stakeholders.
These include state governors, trade associations, youth groups, civil society organisations, lawmakers, journalists, media executives, etc. Such inclusive dialogue has been pivotal in fostering a broad-based understanding and support for the reforms.
Legislative Progress
The Tax Reform Bills have successfully passed the requisite two readings in the National Assembly, paving the way for the forthcoming public hearing.
Senator Sani Musa, Chairman of the Senate Committee on Finance, emphasised the importance of this phase, stating, “We intend to take on two of the bills on each day of the session for the press to be fully abreast with what we intend to do.”
Components of the Tax Reform Bills
The legislative package comprises four distinct bills: Nigeria Tax Bill: This bill seeks to harmonise existing tax laws into a unified framework, thereby simplifying the tax system and making it more accessible for taxpayers.
Nigeria Tax Administration Bill: Aimed at streamlining tax administration processes, this bill focuses on enhancing efficiency and reducing bureaucratic hurdles for both taxpayers and authorities.
Nigeria Revenue Service (NRS) Bill: This legislation proposes the establishment of the Nigeria Revenue Service, replacing the existing Federal Inland Revenue Service (FIRS). The NRS is envisioned to modernise the nation’s tax collection agency, leveraging advanced technologies to improve accountability and transparency.
Joint Revenue Board Bill: This bill aims to establish a Joint Revenue Board to coordinate and oversee tax administration across federal, state, and local government levels, ensuring uniformity and collaboration in tax matters.
Anticipated Benefits amongst others: If enacted, the Tax Reform Bills are expected to yield several benefits:
Economic Growth: The reforms aim to attract investment and stimulate economic activities by creating a more efficient and transparent tax system.
Revenue Generation: The streamlined tax processes are projected to enhance compliance, thereby increasing government revenues.
Equitable Resource Distribution: The reforms seek to address regional disparities by ensuring a fairer allocation of tax revenues among states.
The public hearing represents a critical opportunity for citizens and organisations to voice their opinions and contribute to shaping a tax system that reflects the nation’s economic aspirations and social equity.
Arabinrin Aderonke Atoyebi is the technical assistant on broadcast media to the executive chairman of the Federal Inland Revenue Service.
