The Nigerian Senate on Monday, February 24, commenced a two-day public hearing on tax reform bills that aim to overhaul the country’s tax system and improve revenue generation.
The hearing, organised by the Senate Committee on Finance, engages key government officials and stakeholders to deliberate on the proposed legislation.
The chairman of the Senate Committee on Finance, Sani Musa, said the hearing followed extensive consultations with relevant stakeholders on Wednesday, February 19, after a closed-door meeting.
He assured that the process would be transparent and thorough to ensure that all concerns are addressed for Nigeria’s economic growth.
The legislative discussions are expected to focus on four key bills: the Joint Revenue Board Establishment Bill, the Nigerian Revenue Services Bill, the Nigerian Tax Administration Bill, and the Nigerian Tax Bill.
According to Musa, high-profile officials, including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Attorney-General of the Federation, Lateef Fagbemi; Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji; the Statistician-General of the National Bureau of Statistics, Adeyemi Adeniran; the Minister of Petroleum, and the Minister of Trade and Investment, among others are expected at the hearing.
Background
The public hearing came amid growing debates over President Bola Tinubu’s proposed tax reforms, which have sparked concerns among stakeholders, particularly in Northern Nigeria.
Despite opposition, the Senate passed the four tax reform bills for a second reading in November 2024, following a heated debate led by Senate Majority Leader Opeyemi Bamidele.
While proponents argue that the bills will simplify taxation, reduce burdens on small businesses, and streamline revenue collection, critics, including some Northern governors and senators, have raised concerns about the timing and potential impact of the reforms.
Ali Ndume, senator representing Borno South, had suggested that necessary amendments be made before the bills are finalised.
The Tinubu administration positioned these reforms as crucial for strengthening Nigeria’s fiscal institutions, boosting government revenue, and aligning tax policies with economic development goals.
Further insight into the bills are; the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.
Others are; the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service (FIRS) Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
The president stated that the bills would strengthen Nigeria’s fiscal institutions and align with his administration’s broader development goals.
Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M