House of Reps Vows to Deliver Transparent, Fair Tax Laws Amid Rising Opposition
By Comfort Chukwukelue
The House of Representatives has pledged to enact tax laws that are transparent and fair to all Nigerians, assuring that the proposed tax reforms will be carefully scrutinized before passage. This commitment was made on Wednesday during a public hearing in Abuja, where several stakeholders voiced strong opposition to the ongoing tax reform process.
Among the groups that opposed the reforms were the Nigeria Customs Service (NCS), the Trade Union Congress (TUC), and the Supreme Council for Shari’ah in Nigeria (SCSN). The comptroller general of the NCS, Bashir Adeniyi, warned that certain provisions in the proposed tax reform bills could effectively legislate the agency out of existence. He specifically pointed to jurisdictional conflicts between the Nigerian Revenue Service Establishment Bill 2024 and the Nigeria Customs Service Act 2023, expressing concerns that the new legislation could override existing laws governing customs operations.
Similarly, TUC President Festus Osifo strongly opposed provisions in the bill that seek to scrap and defund the Tertiary Education Trust Fund (TETFUND) and the National Agency for Science and Engineering Infrastructure (NASENI). He argued that both institutions have played critical roles in national development and should not be eliminated. Osifo also criticized the proposal to transfer the responsibility of collecting royalties and other revenues in the oil and gas sector from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to the new revenue agency.
In support of the TUC’s position, Ahmed Bello, a representative of the Supreme Council for Shari’ah in Nigeria, called for a reduction in Value Added Tax (VAT) from the current 7.5 percent to its previous rate of 5 percent. He cited the harsh economic realities facing Nigerians and emphasized the need to ease financial burdens on citizens rather than increasing taxation.
Speaker of the House, Tajudeen Abbas, reassured Nigerians that the Green Chamber would carefully review all concerns raised by stakeholders before passing the tax reform bills. Represented by Majority Leader Julius Ihonvbere, Abbas acknowledged the need for a tax system that balances revenue generation with economic fairness. He emphasized that the House remains committed to ensuring that any changes to tax laws are in the best interest of all Nigerians.
“The Tinubu administration is deliberate in its tax reform programme, aimed at improving Nigeria’s tax-to-GDP ratio by streamlining and broadening the tax base,” Abbas stated. “However, as representatives of the people, we must ensure that these reforms are thoughtful, fair, and justifiable. Taxes should not only generate revenue but also consider the burdens they impose on individuals and businesses.”
