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Nigeria’s Tax Reform Committee Proposes Comprehensive Changes to Address Economic Challenges

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Taiwo Oyedele

In a pivotal presentation to the Nigerian Senate, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has laid out the committee’s findings and recommendations to overhaul the country’s tax system.

Established to address Nigeria’s persistent economic challenges, the committee’s proposals aim to tackle issues such as high poverty rates, a sluggish economy, and an unsustainable reliance on public debt.

Oyedele highlighted the alarming statistic that 133 million Nigerians currently live in multidimensional poverty, facing limited access to education, healthcare, and stable employment.
He said, the country’s economic growth rate has been consistently outpaced by its population growth, exacerbating the poverty crisis.

Explaining further, he indicated that the Nigeria’s economic landscape is also marred by high inflation, declining foreign direct investment, and an unfriendly business environment.
“With government revenue falling short of budgetary needs, Nigeria has increasingly turned to borrowing, leaving the country in a precarious fiscal position.
“Tax collection has been inefficient, with many Nigerians expressing distrust in the government’s ability to fairly collect and use taxes.”

In response, he said the committee held extensive consultations with state governors, private sector leaders, and civil society groups, all of whom voiced their concerns about the current tax system.
The committee’s findings revealed a widespread dissatisfaction with the tax structure and a lack of faith in the government’s ability to implement meaningful reforms.

To address these issues, the committee has proposed four key legislative bills designed to streamline and improve Nigeria’s tax system
The first is the Nigeria Tax Bill, the comprehensive bill he said is aimed at consolidating existing taxes into one framework, simplifying tax processes, and offering exemptions for low-income earners.
The Tax Administration Bill: This bill focuses on standardizing tax administration, promoting the use of technology in collection, and improving the efficiency of tax processes.

The Nigerian Revenue Service Establishment Bill: Proposes the creation of a new, more coordinated revenue service to enhance tax collection and reduce duplication of efforts by various agencies.

The Joint Revenue Board Establishment Bill: Aimed at fostering collaboration between different tax authorities, this bill also introduces the establishment of a Tax Ombudsman to protect small businesses from unfair tax practices.

Explaining further Oyedele said among the key reforms are the removal of minimum tax requirements for loss-making companies, the introduction of a 15% effective tax rate on profits for large corporations, and the removal of VAT on essential goods and services.
Additionally, the proposal includes raising the income tax thresholds to exclude low-income earners from taxation, thus alleviating the financial burden on the poorest Nigerians.

The committee also called for a revision of the VAT revenue-sharing formula, which currently favors states with large corporate headquarters, proposing a fairer distribution based on consumption within each state.

In concluding his presentation, Oyedele emphasized the urgent need for tax reforms to stimulate economic growth and reduce poverty.
He urged the Senate to support the proposed bills, which, if enacted, could foster a more business-friendly environment and strengthen Nigeria’s economic foundations.

As Nigeria faces mounting fiscal pressures, these proposed tax reforms represent a crucial step in ensuring a more equitable and sustainable economic future.

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FG Takes Major Step in Enhancing Food Security with Cold Storage Initiative

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In a major step to address food insecurity and reduce post-harvest losses, the Federal Government has pledged its support for the Cold Storage Initiative, aimed at improving food storage and enhancing the country’s food security.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made this announcement during a meeting in his Abuja office with a delegation from the National Agricultural Development Fund (NADF), GENESIS Energy Group, USAID, and KPMG.

Director of Information and Public Relations, Mohammed Manga in a statement indicated that the meeting focused on establishing a strategic partnership to implement solar-powered cold storage facilities and optimize logistics systems across Nigeria.

The delegation shared updates on their ongoing efforts to introduce cold storage solutions in key agricultural hubs nationwide.
The initiative is expected to tackle significant post-harvest losses, improve food supply chains, and ensure a more consistent availability of fresh produce.
Minister Edun commended the project, highlighting its alignment with President Bola Ahmed Tinubu’s commitment to food security.
He noted that recent economic reforms, including fuel and foreign exchange pricing adjustments, have stabilized the economy and opened up opportunities for investment.
He further assured the delegation of the Ministry’s full support for the initiative, recognizing its potential to create jobs, attract foreign investment, and contribute to poverty alleviation.

The meeting was attended by key representatives, including Akinwole Omoboriowo, CEO of GENESIS Energy; Mohammed Ibrahim, Executive Secretary of NADF; and Dimeji Salaudeen of KPMG, among others.

With the Federal Government’s backing, this initiative is set to revolutionize the food storage sector, ensuring the preservation of agricultural produce, reducing waste, and ultimately enhancing Nigeria’s food security. This project marks a major step forward in the country’s goal of achieving long-term food security.

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Tax Reform Campaign: NOA Takes Fight Against Get-Rich-Quick Syndrome to Jigawa

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By Ahmed Rufa’i, Dutse

The National Orientation Agency (NOA) has launched a public enlightenment campaign in Jigawa State, urging citizens, especially youths, to abandon shortcuts to wealth and embrace integrity, hard work, and ethical practices.

Speaking at the Federal Secretariat in Dutse, the NOA Director-General, Mr. Lanre Issa, represented by Mr. Williams Dogo, Director of Legal Services, emphasized the importance of addressing societal challenges such as the get-rich-quick mentality, security concerns, and misinformation surrounding tax reforms.

The campaign, part of a nationwide initiative, is aimed to combat the rising trend of fraudulent wealth acquisition.
It is also aimed at raising awareness on security issues and promote public cooperation with law enforcement.
It is also meant to educate citizens on the benefits of the new tax reform and its role in equitable development.

Issa highlighted the detrimental effects of the get-rich-quick culture, particularly among the youth, noting that such practices erode societal values and contribute to criminal activities like internet fraud.
He stressed that the government has criminalized such fraudulent practices and is implementing programs to empower young people through skill acquisition and other initiatives.

“The government is deeply committed to addressing economic hardship by providing opportunities for youth empowerment. However, we need citizens to reject dubious means of wealth acquisition and work with integrity,” Issa said.
On security, the NOA DG commended government efforts to enhance security through better funding, training, and equipment for agencies. However, he called on citizens to report suspicious activities and cooperate with security personnel to create a safer society.
Addressing concerns about the new tax reforms, Issa explained that they aim to ease the burden on hardworking Nigerians while ensuring fairness and increased funding for development projects.
He urged stakeholders, including traditional and religious leaders, media, and civil society groups, to support the reforms by spreading accurate information and encouraging compliance.

In his remarks, the Jigawa State NOA Director, Alhaji Tijjani, expressed concern over the exploitation of the current economic hardship by some individuals to commit crimes. He reiterated the agency’s dedication to guiding citizens towards legitimate means of success and discouraging fraudulent behaviors.

“We are targeting youths and other stakeholders to educate them on the dangers of shortcuts to wealth and encourage them to embrace legal and ethical ways of achieving their goals,” Tijjani said.

The campaign underscores the government’s resolve to build a society rooted in integrity, fairness, and sustainable development, urging all citizens to play their part in realizing this vision.

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NOA flags off sensitization campaign on 5 critical national issues

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By Friday Idachaba, Lokoja

The National Orientation Agency (NOA) has flagged off a nationwide sensitization campaign on five critical issues central to Nigeria’s well-being, unity, and development.

Mallam Lanre Issa-onilu, Director General of the Agency who flagged off the campaign at the weekend in Lokoja urged unity among Nigerians in their commitment to address the issues and foster a more informed, secure, and ethical society.

Represented by Kogi State Acting Director of NOA, Mr Patrick Edogbanya, the Director General highlighted the five Key national issues and the efforts the national government has made so far at addressing them.

Issa-Onilu whose speech was theme, “Promoting Awareness, Ethical Values and National Development”, pointed out that the challenges before the nation required collective action and active participation from all Nigerians.

He identified the five critical issues as issues arising from World HIV/AIDS Day; Security Awareness; Shunning Get-Rich-Quick Syndrome; World Human Rights Day and Tax Reforms.

On the burning issue of Tax Reforms, the Director General said government was taking a holistic approach to make the nation’s tax system fairer and less burdensome for citizens.

“The tax reform bills are four different bills that seek to bring everything about taxation and administration of tax in Nigeria under four different pieces of legislation”, he said.

The bills according to him include: The Nigeria Tax Bill; The Nigeria Tax Administration Bill; The Nigeria Revenue Service Establishment Bill and The Joint Revenue Board Establishment Bill, all with specific functions to ameliorate the burden of tax.

He said that the reforms will benefit everyone by eradicating double taxation and Support for Low-Income Earners as those earning very little will pay little or no taxes adding that simple and transparent processes will be adopted with introduction of new digital systems.

On the issue of HIV/AIDS, he said that aside joining the global community to raise awareness during World HIV/AIDS Day Nigeria had intensified efforts to provide free and accessible HIV testing and counseling services nationwide.

The DG added that among other efforts, the country had ensured that antiretroviral treatment remains available and accessible to people living with HIV/AIDS and went further to partner local and international organizations to combat stigma and discrimination arising from the disease.

He however, noted that the government alone cannot win this fight against HIV/AIDS and therefore, urged citizens to take advantage of services being provided by government and other entities, practice responsible health behaviours, and support those living with HIV/AIDS.

On security, Issa-Onilu reminded Nigerians that Security remains a top priority for the government adding that government was strengthening security architecture through better equipment, training, and increased funding for security agencies.

He said that government was also expanding its policing initiatives to improve collaboration between citizens and law enforcement to combat criminal activities as ge called for active support of citizens.

On Human Rights as one of the critical issues, the NOA Director General said efforts at dealing with the issue include
strengthening of legal frameworks to address human rights violations, including gender-based violence and child trafficking.

The efforts, according to him, also include establishing support centers for survivors of abuse and violence in collaboration with Civil Society as well as Promoting constitutional awareness to ensure citizens understand their rights and responsibilities.

The NOA Director General also identified the “Get-Rich-Quick Syndrome” as part of the nation’s critical issues requiring sustained sensitization campaign for Nigerians to shun in all ramifications.

Issa-Onilu said government has taken cognizance of the erosion of our age-long values and evolved measures to address the situation even as economic hardship often drives individuals toward unethical practices.

He urged citizens to reject shortcuts to wealth and embrace integrity, hard work, and the opportunities provided through government initiatives to make life better for all.

“Addressing these five key areas requires collaboration from all citizens, stakeholders, and institutions. Together, we can build a healthier, safer, and more ethical Nigeria”, he urged.

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