Tax Reform: We’re Engaging Stakeholders to Address Concerns – Speaker Abbas

• Speaker Abbas Tajuddeen assured Nigerians that the House is actively engaging stakeholders to address concerns regarding the proposed tax reform bills
• He highlighted Nigeria’s low tax-to-GDP ratio, emphasizing the need for comprehensive reforms to improve revenue generation and broaden the tax base

Speaker of the House of Representatives, Abbas Tajuddeen, has assured Nigerians that the leadership of the House is actively engaging relevant stakeholders to address concerns raised over the four tax reform bills submitted to the National Assembly by President Bola Ahmed Tinubu.

In a statement issued by the Speaker’s Special Adviser on Media and Publicity, Musa Abdullahi Krishi, on Wednesday, Abbas revealed that he has personally engaged with state governors, caucus leaders, and other stakeholders to foster understanding and cooperation regarding the proposed reforms.

Speaking during the presentation of the 2025 budget by President Tinubu to a joint session of the National Assembly, Abbas highlighted the critical need for comprehensive tax reforms to broaden Nigeria’s tax base and improve revenue generation.

“Nigeria’s low tax revenue remains a major constraint,” Abbas noted. “Our tax-to-GDP ratio, currently at approximately 10.9% for 2024, is among the lowest in Africa, significantly below the continental average of 15.6%.

South Africa’s tax-to-GDP ratio stands at 25.4%, while Rwanda and Ghana, with much smaller populations, report ratios of 15.1% and 14.1%, respectively.”

The Speaker also pointed out inefficiencies in Nigeria’s VAT collection system, with an efficiency rate of approximately 20%, far below the near 70% efficiency achieved by countries like South Africa, Equatorial Guinea, and Zambia.

Abbas emphasized that addressing these issues requires urgent and comprehensive reforms to expand the tax base, enhance compliance, streamline administration, and reduce the country’s dependence on borrowing.

He reaffirmed the National Assembly’s commitment to working with the Tinubu administration to ensure the reforms are fair, effective, and considerate of the needs of vulnerable populations.

“To this end, we have engaged stakeholders to address concerns raised on the tax reform bills, fostering trust and cooperation,” Abbas said.

“I have personally led numerous high-level meetings and consultations with state governors and other key stakeholders on this issue, achieving positive outcomes.”

The Speaker assured that the National Assembly would continue to play its role in advancing equitable reforms that strengthen Nigeria’s economy and build public trust.