Tax Reform: We’re engaging stakeholders to address concerns –Speaker Abbas

The Special Adviser to the Speaker on Media and Publicity, Musa Abdullahi Krishi, in a statement on Wednesday said the Speaker had so far personally engaged states governors, caucus leaders, among others.

The statement quoted the Speaker while delivering his votes of thanks during the presentation of the 2025 budget to the joint session of the National Assembly by President Tinubu.

According to the Speaker, Nigeria needs comprehensive tax reforms to broaden its tax base.

He said, “Nigeria’s low tax revenue also remains a major constraint. Our tax-to-GDP ratio, currently at approximately 10.9 per cent for 2024, is among the lowest in Africa, significantly below the continental average of 15.6 per cent. In comparison, South Africa’s tax-to-GDP ratio stands at 25.4 per cent, while Rwanda and Ghana, with much smaller populations, report ratios of 15.1 per cent and 14.1 per cent, respectively.

“Even our VAT collection efficiency – at approximately 20 per cent – is notably below the near 70 per cent efficiency achieved by South Africa, Equatorial Guinea, and Zambia.

“Addressing these challenges requires urgent and comprehensive tax reforms to broaden our tax base, improve compliance, streamline administration and reduce reliance on borrowing.”

Speaker Abbas informed the President that the National Assembly would continue to work with the Tinubu administration towards achieving the required reforms.

He stated, “The National Assembly will continue to work with your administration to ensure that such reforms are equitable, 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. I have personally led numerous high-level meetings and consultations with state governors and other key stakeholders on this issue, achieving positive outcomes”.