By Chukwudi Obasi, Abuja
Speaker of the House of Representatives Abbas Tajudeen yesterday said the tax reform bills presented by President Bola Tinubu to the National Assembly would be diligently scrutinised in the best interest of Nigerians.
Abbas, who made this known during an interactive session on the bills organised by the House, said they were yet to take a definitive position on them.
He said the House owes Nigerians a duty to ensure that the bills’ outcomes are in the national interest.
The Speaker said the four tax reform bills represent critical proposals from the executive to expand Nigeria’s tax base, improve compliance, and establish sustainable revenue streams for the nation’s development.
He explained that the purpose of the interactive session is to provide members with a comprehensive understanding of the proposed bills and deepen their appreciation of their provisions, commence constructive dialogue on contentious or controversial areas, and build a consensus.
He said the interaction will help identify areas that need amendment, clarification, or improvement and consider the compatibility of these bills with the 1999 Constitution (as amended) and other extant laws.
The Speaker said tax reforms form part of the provisions of the House Legislative Agenda because of their central role in achieving sustainable economic growth and development,
He stressed that taxes are the bedrock of public revenue in every modern state, providing the resources required to deliver education, healthcare, infrastructure, and security.
Speaker Abbas lamented that despite Africa’s largest economy, Nigeria still struggles with a tax-to-GDP ratio of just 6 percent—far below the global average and the World Bank’s minimum benchmark of 15 percent for sustainable development.
He said this is a challenge that must be addressed if the country is to reduce its reliance on debt financing, ensure fiscal stability, and secure its future as a nation.
He explained that the proposed tax reform bills aim to diversify our revenue base, promote equity, and foster an enabling environment for investment and innovation.
He said that representatives of the people must approach these reforms thoughtfully and understand their potential implications for every segment of society.
He said taxes should be fair, transparent, and justifiable, balancing the need for public revenue with the burdens they impose on individuals and businesses.
He said further that pre-legislative scrutiny is a well-established practice in many parliaments worldwide. It allows lawmakers to thoroughly review proposed legislation, address ambiguities, and ensure alignment with constitutional provisions before formal consideration.
He said the controversies surrounding these bills in the media, civil society, and among governance stakeholders reflect their importance.
Such debates, he said, are healthy and necessary in a democracy.
He commended the Presidential Committee on Tax Reforms and Federal Inland Revenue for their work in presenting these proposals.
He asked members to approach this session with an open but critical mind.
Deputy Speaker of the House Benjamin Kalu said the gathering was a testament to the House’s shared commitment to crafting a tax system that generates revenue and engenders equity, economic growth, and sustainable development for our nation.
According to him, tax policy is more than a fiscal tool; it is a catalyst for progress, a vehicle for opportunity, and a foundation for inclusive prosperity.
He added that it must be rooted in the collective aspiration to create a tax regime that works for all Nigerians, regardless of their economic standing.
He said streamlining taxes should aim at incentivizing key sectors where taxation drives innovation, empowers businesses, and uplifts the most vulnerable.
He said the parliament expects more insight into how the tax reforms incentivize the Digital Economy, support small businesses and low-income households, and, more importantly, how the Zero-Rated Value Added Tax works.
He said, “These provisions must be articulated clearly, highlighting how they align with the overarching goal of engendering equity, driving economic growth, and ensuring that no section of society is left behind.
“It is obvious to Nigerians that there will be a need to harmonise taxes, eliminate nuisance levies, and streamline incentives to engender a more equitable and transparent tax system.
“This session reflects the strength of our democracy—bringing together policymakers, stakeholders, and citizens to deliberate on these tax reforms. These tax reforms represent a shift towards a sustainable fiscal framework, including where effective taxation creates opportunities, reduces inequalities, and enables every citizen to thrive.
“As these bills proceed through the legislative process, Nigerians will have opportunities to air their views and actively participate in shaping the outcomes. Advocacy will also play a pivotal role in ensuring that citizens understand the objectives and benefits of these reforms and the challenges they aim to resolve.”
Chairman of the Federal Inland Revenue Service (FIRS), Zack Adedeji, said the agency was awaiting the outcome of the bills.
He said the FIRS was responsible for implementing policies and laws passed by the National Assembly.
Giving an overview of the four tax reform bills, the Chairman of the presidential committee, Mr Taiwo Oyedele, said there was nothing to fear in the proposals as they are in the best interest of Nigeria, especially states and local governments.
