Tax reforms to strengthen macroeconomic stability — Oyedele
…Embrace FG’s tax reforms, Akpabio urges Nigerians
…NNPC, RMFAC, Arewa Think Thank, others support reforms
By Seun Ibiyemi
The Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Mr. Taiwo Oyedele, has stated that the new tax reform is designed to strengthen Nigeria’s macroeconomic stability.
Oyedele made the remarks during an interview with journalists in Abuja on Monday, explaining that the government’s proposed tax reforms aim to improve revenue mobilisation, raise the tax-to-GDP ratio, enhance credit ratings, and reduce the cost of debt.
He further added, “By boosting the country’s credit rating and lowering debt costs, the government seeks to achieve a healthier fiscal balance, thus supporting sustainable economic growth.”
“The reforms will address inefficiencies in the incentives regime, improve free trade zones, and promote equity and fairness between the government and taxpayers.”
Oyedele also emphasised that the reforms are crucial for Nigeria’s economic development, pointing out that they would provide significant relief for households through measures such as wage increases, transport subsidies, tax exemptions on food imports, tax suspensions on fuel products, and overall reductions in tax burdens.
He outlined that the reforms aim to exempt low-income earners, reduce tax rates for the middle class, and introduce VAT exemptions and zero ratings for essential goods.
Regarding businesses, Oyedele explained that the proposed reforms will help mitigate risks, lower tax rates, and facilitate tax refunds.
“These reforms will reduce business risks by eliminating minimum tax requirements, allowing interest deductions, streamlining tax rulings, and addressing the statute of limitations,” he said.
“They will also enable companies to benefit from input VAT credits, receive tax relief, and access economic development incentives. Additionally, the reforms aim to lower tax burdens, introduce a more competitive tax regime, facilitate tax payments in Naira, and ensure tax refunds.”
For small businesses, Oyedele noted that the proposed tax reforms would raise the tax exemption threshold from N25 million to N50 million in annual turnover, offering much-needed relief and enabling them to grow and contribute sustainably to the economy.
The committee chairman reiterated that the proposed reforms would address all the important areas requiring attention.
In a related development, Senate President, Godswill Akpabio, has called on Nigerians to embrace the proposed tax reform bills, stating that reforming the country’s tax administration is key to ensuring its future prosperity.
Akpabio made the call in Abuja on Monday, at the start of a two-day public hearing organised by the Senate Committee on Finance on the proposed four tax reform bills.
The bills under discussion include The Nigeria Tax Bill 2024, The Nigeria Tax Administration Bill 2024, The Nigeria Revenue Service Establishment Bill 2024, and the Joint Revenue Board Establishment Bill 2024.
In his speech, titled *”New Dawn: Embracing Tax Reform for a Prosperous Nigeria”*, Akpabio highlighted the public hearing as a crucial step towards economic renewal, urging stakeholders to engage with courage and commitment for the betterment of the nation.
He stressed the importance of adapting the country’s revenue system to modern realities, warning that failure to do so could lead to stagnation.
Akpabio outlined Nigeria’s transition from outdated tax practices and bureaucratic challenges to a transparent, robust tax administration system conducive to business.
“This public hearing is not just a legislative requirement, but a call to collective action,” he remarked. “It is a platform for dialogue where lawmakers, tax administrators, business operators, and citizens can come together to create a tax system that is fair, transparent, and effective.”
The four bills, according to Akpabio, seek to harmonise revenue administration across all levels of government, reduce the cost of tax collection, enhance compliance, and improve efficiency.
The bills also aim to introduce digital innovations that simplify tax payments, close loopholes, ensure fairness, protect vulnerable taxpayers, and foster an environment conducive to economic growth.
“We cannot afford to approach revenue generation in a fragmented way,” Akpabio said. “We must come together—federal, state, and local governments, along with the private sector and civil society—to build a tax system that truly works for all.”
He further stressed the National Assembly’s commitment to enacting legislative reforms that would bolster Nigeria’s economic foundation, empower businesses, and enhance government accountability.
“The success of this public hearing relies on your active participation, and I encourage all stakeholders to engage meaningfully,” Akpabio concluded. “Let us use this opportunity to lay the groundwork for a more resilient and prosperous Nigeria.”
Several key stakeholders have also expressed support for the proposed tax reforms. Group Chief Executive Officer of NNPCL, Mele Kyari, voiced strong backing for the bills, describing them as a welcome development that will simplify the country’s tax system.
“We are excited to see this tax law coming into place, which will consolidate education and bring significant reforms to make the tax system more straightforward,” Kyari said. “This will strengthen our industry, making our business more profitable.”
Dr. Mohammed Shehu, Chairman of the Revenue Mobilisation and Fiscal Allocation Commission (RMFAC), also expressed full support for the bills, highlighting that they would contribute to the stability of the economy. However, he called on the Senate Committee on Finance to address concerns related to the distribution of resources to sub-national governments.
Muhammad Yakubu, Convener of the Arewa Think Tank, added that the group had reviewed the benefits of the bills and expressed support for them, clarifying that the Northern region was not opposed to the proposed reforms.
Representing the Supreme Council for Sharia in Nigeria, Ahmad Dogarawa, acknowledged the need for tax system reforms, commending the government’s efforts while suggesting a review of the VAT rate, proposing a reduction to 5 per cent or maintaining the current 7.5 per cent.
Senator Sani Musa, Chairman of the Senate Committee on Finance, concluded by stating that the country was becoming more united through the tax reform process, noting that areas of disagreement would be resolved for the greater good of the nation.
“We are committed to producing a tax system that will guide our tax collection and distribution, contributing to national prosperity in line with the President’s vision,” Musa said.
“We will work together to ensure that this law works for all Nigerians.”
