The National Assembly has formally delivered four critical tax reform bills to President Bola Tinubu,marking a significant step in the government’s ambitious overhaul of the country’s tax system. The bills include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, revealed this development at the 50th birthday lecture of Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, in Abuja on Wednesday. Edun described the delivery of the bills as a significant milestone for the Tinubu administration, emphasizing that once signed into law, these reforms are poised to enhance the efficiency and fairness of Nigeria’s tax system.
The reforms aim to nearly double the country’s low tax-to-GDP ratio, which is one of the lowest globally. Edun assured that these measures would significantly improve Nigeria’s fiscal health, lifting millions of Nigerians out of poverty by focusing on key sectors like agriculture, infrastructure, and access to finance.
The minister praised Tinubu for his perseverance in championing the reforms through challenging times, noting that the President knew the value of the four tax reform bills and kept going through thick and thin. Edun also highlighted the role of Oyedele in making complex tax issues accessible to a wide audience, facilitating better understanding and support for the reforms.
Oyedele, in his remarks, stressed the importance of addressing regulatory bottlenecks and tariff burdens to stimulate economic growth. He called for a reduction in corporate tax rates to attract new investments and advised that Nigeria must embrace digitization to facilitate economic reform. He also cautioned against simplistic solutions in public policy, urging the elite to engage in more rigorous intellectual debates.
The tax reforms promise to introduce a more transparent and fair tax system, aligning with global best practices. They aim to enhance clarity and ease of administration while increasing government revenue to address critical public needs such as health, education, and infrastructure.
The delivery of the tax reform bills to the President is a significant step towards transforming Nigeria’s fiscal landscape. The bills’ passage into law will be a major milestone in the government’s efforts to improve the country’s economy and the lives of its citizens.
