The Nigerian Senate has commenced a two-day public hearing on proposed tax reform bills, aiming to engage key stakeholders in shaping the country’s fiscal policies.
The hearing, taking place at the National Assembly, brings together top government officials, industry leaders, and tax experts to deliberate on the future of Nigeria’s tax system.
High-Level Participation
Present at the hearing are prominent figures, including:
- Minister of Finance and Coordinating Minister of the Economy, Wale Edun
- Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji
- Group CEO of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari
- Comptroller General of Customs, Adewale Adeniyi
- Members of the Federal Executive Council and heads of relevant agencies
These officials are expected to provide insights into how tax reforms can enhance revenue generation while maintaining a fair and efficient tax system.
Senate’s Commitment to Fair and Transparent Tax Reforms
Chairman of the Senate Committee on Finance, Senator Sani Musa, reaffirmed the Senate’s commitment to a transparent process that aligns with national economic goals.
He emphasized that the tax reform bills seek to modernize Nigeria’s tax laws, eliminate inefficiencies, and establish a revenue system that supports sustainable economic growth.
“Our objective is to create a tax framework that ensures fairness, equity, and inclusivity while addressing loopholes in the existing tax structure,” Senator Musa stated.
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Addressing Nigeria’s Taxation Challenges
The public hearing will tackle key issues affecting tax administration in Nigeria, including:
- Widespread tax evasion
- Double taxation concerns
- Inconsistencies in tax policies and enforcement
- Barriers to business growth due to unclear tax regulations
The Senate aims to develop tax policies that not only improve government revenue but also foster a more business-friendly environment to attract investment.
Stakeholders Encouraged to Participate
Senator Musa called on private sector representatives, civil society organizations, and the general public to actively engage in the discussions.
“The success of these reforms depends on collective input. We encourage all stakeholders to contribute to policies that will drive economic expansion and national prosperity,” he said.
Background: Controversy Surrounding the Tax Reform Bills
The Tax Reform Bills have faced significant opposition since their introduction.
In December 2024, the Senate suspended action on the bills due to widespread concerns and public outcry. The Senate Committee on Finance was instructed to delay public hearings until these concerns were addressed.
To resolve the issues, the Senate established a special committee to work with the executive arm of government. The goal was to ensure that the reforms reflect the interests of both businesses and taxpayers.
Among the proposed tax bills are:
- Joint Revenue Board of Nigeria (Establishment) Bill, 2024
- Nigeria Revenue Service (Establishment) Bill, 2024
- Nigeria Tax Bill, 2024
However, resistance remains strong. The Northern Governors Forum has outrightly rejected the bills, labeling them as harmful to democracy.
Additionally, the National Economic Council, Nigeria’s highest economic advisory body, recommended that the tax reform bills be withdrawn for further consultation.
Next Steps
With the public hearing now underway, the Senate hopes to bridge gaps between the government and the private sector, ensuring that Nigeria’s tax system is both effective and inclusive.
The outcome of these discussions will determine whether the tax reform bills will proceed or require further amendments to address public and economic concerns.
