Fiscal Responsibility Commission Urges Support for Tax Reform Bills
The Fiscal Responsibility Commission (FRC) has issued a rallying call for nationwide support of the contentious Tax Reform Bills currently under consideration in the National Assembly. The appeal comes amidst intense opposition from lawmakers and stakeholders across the country, which has led to a temporary suspension of legislative progress.
Victor Muruako, Chairman of the FRC, voiced his support for the reforms during an interaction with academics and journalists at the Capital Market Academics of Nigeria’s Fellowship Lecture and Investiture Ceremony held at the NDIC Academy in Abuja on Monday.
The bills, introduced by the Presidential Fiscal Policy and Tax Reforms Committee, include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; and Nigeria Tax Bill, 2024.
A National Appeal
Muruako sought to dispel fears of regional bias, emphasising that a detailed review by the FRC found no provisions favouring any specific geopolitical zone. “The bills create a more equitable distribution of resources among Nigeria’s federating states,” he stated.
The Commission’s analysis highlights several benefits of the proposed reforms, including tax relief for low-income earners and micro, small, and medium enterprises (MSMEs). Notably, individuals earning less than ₦1.7 million annually would see a reduction in their income tax burden, while businesses with turnovers below ₦50 million would be exempt from taxes entirely.
Muruako added, “Over 90% of small businesses will no longer pay profit tax, while sub-national governments stand to benefit from increased revenue allocations through an expanded share of Value Added Tax income.”
Driving Economic Transformation
The reforms also aim to simplify Nigeria’s tax system by consolidating levies and reducing bureaucratic hurdles. Muruako expressed optimism that these changes would boost economic activity by encouraging savings, fostering household-level capital formation, and enabling organic growth for small businesses.
“The tax relief will enhance savings and investment at the household level, driving sustainable growth across the economy,” he explained. The measures are expected to contribute to a long-term increase in Nigeria’s GDP through expanded small-scale investments and improved ease of doing business.
Navigating Controversy
Despite the projected benefits, the reforms have faced fierce resistance, with stakeholders expressing concerns over implementation and equity. Addressing these criticisms, Muruako praised President Bola Tinubu’s administration for fostering an environment of dialogue.
“As a democrat, President Tinubu has allowed room for constructive engagement on these bills, ensuring that concerns are addressed while preserving their transformative potential,” Muruako said.
The FRC is urging stakeholders from all regions to support the Tax Reform Bills, viewing them as a critical step toward fiscal equity and economic revitalisation. The Commission remains hopeful that with broad-based collaboration, the legislation will secure the momentum needed to advance Nigeria’s development agenda.
