Senate and FG Forge Ahead on Tax Reform: Key Bills Near Consensus
The Nigerian Senate and a team from the Federal Government, led by Attorney General of the Federation (AGF) Lateef Fagbemi (SAN), convened on Monday in a crucial effort to resolve disputes over four proposed tax reform bills. These bills, introduced by President Bola Tinubu, aim to overhaul the nation’s tax administration and enhance revenue collection.
The meeting, held behind closed doors for over two hours, marked a turning point in the legislative process. The dialogue was described as productive, with both parties reportedly narrowing their differences. Senator Abba Moro, chair of the Senate’s ad hoc committee on tax reforms, emerged to announce that a public hearing is on the horizon, signaling the next phase of stakeholder engagement.
“We interfaced with the AGF, the RMAFC Chairman, and the FIRS Chairman to evaluate the contentious points regarding the tax bills. We have agreed to streamline the processes to ensure the final law serves the interest of all Nigerians,” Moro stated. He underscored the importance of broad-based input, promising that the forthcoming public hearing would reflect diverse perspectives.
Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), expressed confidence in the process, noting that all major concerns had been addressed. “All grey areas were clarified today. The AGF, lawmakers, and we, the operators, are now aligned. We’re confident the laws will meet the expectations of Nigerians,” Adedeji said.
The proposed legislation includes the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill. Collectively, these reforms aim to modernize Nigeria’s tax system, boosting efficiency and expanding the revenue base.
Having passed the second reading in the Senate on November 28, 2024, the bills have sparked intense debate due to their far-reaching implications for the fiscal landscape. As the Senate prepares for the public hearing, lawmakers are keen to ensure the final legislation balances fiscal prudence with public accountability.
