The Senate will commence a two-day public hearing on the four tax reform bills presented by President Bola Tinubu, aimed at improving the nation’s tax administration.
This announcement was made on Wednesday by the Chairman of the Senate Committee on Finance, Sen. Sani Musa in Abuja, who disclosed that the public hearing would take place on February 24 and February 25.
Following an extensive debate on the House floor, the Nigerian House of Representatives had passed the four tax reform bills for a second reading.
“We intend to address two of the bills each day of the session to keep the press fully informed about our intentions,” Sen. Musa explained.
The four bills under consideration are the Nigeria Tax Bill, 2024; Nigeria Tax Administration Bill; Nigeria Revenue Service Establishment Bill; and Joint Revenue Board Establishment Bill. According to Sen. Musa, these bills will significantly overhaul the country’s tax administration and revenue generation, with many provisions being landmark in nature.
Significance of the bills
He added that the bills would elevate Nigeria to the level of advanced economies, ensuring adequate funding for infrastructure, education, agriculture, and other sectors of the economy.
- Sen. Musa noted that committee members had thoroughly studied the bills and engaged with various stakeholders before deciding to hold the public hearing. He expressed confidence that the hearing would proceed smoothly and emphasized that President Bola Tinubu had assured there would be no interference in the tax reform process.
“It is our duty as legislators to do what is necessary for the good of this country. We represent different tribes, religions, and regions, but we are all Nigerians. Our goal is to enact laws that will put us on track economically. By the grace of God, we will succeed,” Sen. Musa stated.
- The public hearing will invite several key figures, including the Federal Minister of Finance and Coordinating Minister of Economy, the Minister of Trade and Investment, and the Attorney-General of the Federation.
- Additionally, the Minister of Petroleum Resources, the Chairman of the Federal Inland Revenue Services, and the Statistician-General of the Federation will also be invited to provide their submissions.
Sen. Musa assured that the National Assembly would ultimately produce tax administration legislation that would be acceptable to Nigerians.
What you should know
Last week, following a debate lasting over four hours, the bills were passed for a second reading when put to a vote by Speaker Abbas Tajudeen.
- The bills were then referred to the House Committee on Finance for further legislative action.
- The tax reform bills, drafted by the Presidential Committee on Tax Reforms and Fiscal Policy, aim to overhaul Nigeria’s existing tax laws.
- However, the bills have faced opposition, primarily from northern governors who have labeled them as “anti-North.”
- The debates have escalated into a North vs. South issue, particularly over the VAT sharing formula.
The National Economic Council (NEC), composed of governors and chaired by Vice President Kashim Shettima, urged the president to withdraw the bills for further consultations. Nonetheless, President Tinubu insisted that all concerns be addressed in the National Assembly.
