Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, on Friday said Nigeria’s revenue will see significant boost with the proposed changes in tax laws.
On October 3, President Bola Tinubu submitted four tax reform bills to the National Assembly for consideration and approval. The proposed bills include the Nigeria Tax Bill, Tax Administration Bill, and the Joint Revenue Board Establishment Bill.
Key provisions in the bills include raising the value-added tax (VAT) to 10% by 2025, reducing the company income tax (CIT) to 27.5% from the current average of 30%, and increasing personal income tax (PIT) to 25% for high earners starting next year, up from around 20%. Tinubu also proposed repealing the Federal Inland Revenue Service (FIRS) Act and replacing it with the Nigeria Revenue Service.
In response, the Northern States Governors Forum (NSGF) expressed opposition to the bills after meeting with the Northern Traditional Rulers Council at Kaduna’s Government House on October 28. The NSGF urged the National Assembly to reject any legislation potentially harmful to the region, emphasizing the need for fair and equitable implementation of national policies to avoid marginalizing any part of Nigeria.
After the governors’ statement, the presidency reassured them on October 31 that the reforms are intended to benefit all Nigerians and strengthen the tax system, not to disadvantage any region.
The same day, the National Economic Council (NEC) advised President Tinubu to withdraw the bills to allow for further consultations. However, Tinubu urged the NEC to let the legislative process continue as planned.
Speaking with Bloomberg, Oyedele said the tax reforms would ensure revenue “double within the next two to three years as a share of gross domestic product (GDP)”.
“If we are moving from 9 percent to 18 percent, that means we are doubling it,” he said.
Oyedele said the government would not back down, though elements of the plan could be tweaked.
“The worst case scenario is to drop the controversial issues,” he said.
“There’s an outcome of it going ahead as proposed, or the one that goes ahead with modification, which is okay.”
