AS controversies reign over the tax reform bills, Founder of the Kukah Centre, Bishop Mathew Kukah; the Chartered Institute of Taxation of Nigeria, CITN; Nigeria Employers' Consultative Association, NECA; and Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, have proffered suggestions on how to make the reforms work.
This came as the Federal Government asked Nigerians not to inject ethnic and regional slurs into the tax conversation and promised to be accountable and always act in the interest of Nigerians.
Also, the Senator Sani Musa-led Senate Committee on Finance, which is working on the four tax reform bills, said that contrary to speculations in some quarters, an upward review of taxes, on its own, does not drive economic growth. According to the committee, production drives economic prosperity.
While Kukah hoped that the reform will end elites' financial recklessness, NECA said the move was necessary but needs more data integration to be effective.
On a day that some governors softened their hard line stance, PENGASSAN said that some provisions of the bills might affect the oil and gas industry.
Don't inject ethnic, regional slurs in national conversation, Minister warns
The Minister of Information and National Orientation, Mohammed Idris, warned against injection of unnecessary ethnic and regional slurs into the national conversation.
The Minister, in a statement, said that President Bola Tinubu was committed to accountability on the tax bills and will always act in the interest of the Nigerian people.
He assured those with mixed feelings over the bills that the fiscal reforms would not impoverish any state or region of the country, nor will they lead to the scrapping or weakening of any federal agency.
The statement partly read: "The robust nationwide debate on the new tax reform bills currently before the National Assembly is welcomed, and commendable. It is very inspiring to see Nigerians from all walks of life coming out to express their views and opinions on these matters of critical national importance. This is the very essence and meaning of democracy.
"I call on all commentators and groups to keep up the spirit of informed engagement and to strive to be respectful and understanding at all times despite the diversity of opinions. In the spirit of democratic engagement, there should be no room for name-calling, or for the injection of unnecessary ethnic and regional slurs into this important national conversation.
"Similarly, it is important to be aware that there is a lot of misinformation and fake news circulating around the tax bills and the overall reform agenda of the Tinubu Administration. The fiscal reforms will not impoverish any state or region of the country, nor will they lead to the scrapping or weakening of any federal agencies.
"Instead, they will bring relief to tens of millions of hardworking Nigerians across the country and empower and position our States and the 774 Local Governments for sustainable growth and development."
It should end elites' financial recklessness - Kukah
Speaking as a guest on Channels Television's Morning Brief, yesterday, Kukah advised the Federal Government to ensure that the ongoing reforms lead to the country's development.
"Nigeria is a very energetic country with people that are so eminently gifted and are roaring to soar at any time. However, our problem is the inability of states to create enough gatherings to contain the energy, vision, and competing narratives of their citizens. This lack of competitive gatherings often spills over into violence.
"But I hear you when you speak about all the issues identified. And I am excited about the issue of tax reform bills because, first, I know nothing about it. But I have started educating myself. Any form of reform at all must get this thoroughly dysfunctional country working again.
"So I am excited because hopefully, we can take the time to listen to the conversation about how to avoid and end this financial recklessness, and the irony of Nigerians living by the seaside and washing their faces with saliva. The reforms should end the narrative of Nigerians living in a country that is so richly endowed but are spectators to the rascality and irresponsibility of the elites, who continue to mismanage our resources. So I'm hopeful that this is the beginning of a very long journey of fiscal management and efficiency that can lead to the growth and development of the kind of country that we envision," he said.
Asked to rate Tinubu's administration and offer advice, Kukah said what Nigerians needed was effective communication about the ongoing reforms, as the citizens were battling high poverty level.
"What I can say is that this government must respond urgently to the issues of the day. They are issues of massive impoverishment in Nigeria. You can see the frustration on the faces of people, husbands, wives and children. I am convinced that this government has lofty ideas, but there is a total absence of a constructive strategy of engagement.
"This government needs communication strategies. The Nigerian government needs to convince Nigerians that there is light at the end of the tunnel, and encourage them to be a little patient.
"I see the conversation around local government autonomy, tax reform bills and others. But the government has to communicate with the people. So when people call themselves government spokespersons, it is not about insulting people or thinking others can't have different views. But their job is how the ideas of the government are communicated. We need to have an idea of the government reforms.
"We are happy to hear of the return of Port Harcourt Refinery. And the government needs to tell people what and what to expect at so so time."
He advised the government to avoid trading blames, saying: "By now, Nigerians are tired of hearing the government saying 'we didn't think things were this bad.' They must have had an idea of what was going on before contesting. So, when they say we have $30 million in our reserves. They should know the money should increase before they leave office. People come into government to solve problems and not to compound them. And you must have round pegs in round holes. Government must not take the loyalty of people for granted. Winning elections isn't about getting into power and then waiting to win another one."
Reform needs more data integration - CITN
In an interview with Arise News, President of the Chartered Institute of Taxation, Samuel Agbeluyi, pointed out that harmonising national identification systems like the NIN (National Identity Number) and BVN (Bank Verification Number) would help capture tax-relevant data more efficiently.
"The NIN, ID card we carry, various government agencies having a shallow database has to be harmonised. The BVN is a key point in this--once you do electronic transactions, all your information can be captured," he said.
Sharing his views on the proposed tax reform bills, which he said are necessary steps towards addressing Nigeria's revenue challenges, Agbeluyi acknowledged some concerns, and expressed optimism about the bills' potential to improve the country's tax system.
"The bill is a positive one, that is clear. I doubt if anybody is actually seeing it from a negative perspective. I also agree that there are issues that have been raised in the bill but overall, the bill is what we need."
Agbeluyi stressed the urgency of tackling Nigeria's revenue crisis, which sees more than 90% of the nation's revenue going to service debt. "That is a recipe for disaster," he said, underscoring the need to reform the tax system to generate more income.
He highlighted the inefficiencies within the current tax structure, noting that over 60 different types of taxes exist, but only a handful generate meaningful revenue.
"The sanity that is embedded in this bill is overdue and necessary," he added, calling for its swift passage into law.
Agbeluyi also stressed the importance of state governors building public trust in the tax system.
"A tax man can use Governor Zulum of Maiduguri to market the reason to pay tax. Why is it that people are reluctant to pay their taxes, it is because of the trust deficit, and why the trust deficit? Because people cannot relate what they pay over to the government to what it is being used for but if you get to Maiduguri today, you will see what the money is being used for" he said.
Addressing concerns about third-party tax collection, Agbeluyi explained that while third-party involvement is necessary, accountability and transparency must be ensured. He pointed out that private sector contractors can assist in data gathering and revenue generation, which have already increased the efficiency of tax collection.
"In the private sector, some people can do this better than the various internal revenue services across the country," he noted.
Agbeluyi also emphasised the importance of data in tax reform, noting that "data don't lie. We can do another simulation, reduce the 60% to 40%, or keep constant the derivation before and apply attribution, and see what is going to come out. Data will solve this. We need to work with data, in data we believe."
He called for continued consultations among governors, lawmakers, and other stakeholders to ensure that the reform process is transparent and effective.
Bills may affect oil and gas industry - PENGASSAN
On its part, the PENGASSAN expressed fears that some aspects of the Tax Reform Bills could impact negatively on the Nigeria Upstream Regulatory Commission, NUPRC and the Nigeria Mid and Downstream Petroleum Regulatory Authority, NMDPRA.
Speaking at the National Executive Council, NEC meeting of PENGASSAN in Abuja, President of the association, Comrade Festus Osifo, who is also the President of the Trade Union Congress of Nigeria, TUC, said: "The Association noted the ongoing tax reforms and wish to demand that the tax relief exemptions that is given to those earning minimum wage and businesses should be expanded to accommodate more people and companies in that category.
"Clarity must be provided regarding revenue collection processes from oil and gas companies as some provisions in the bill have the likelihood of negatively impacting our members in some of our major branches like Nigeria Upstream Regulatory Commission (NUPRC) and the Nigeria Mid and Downstream Petroleum Regulatory Authority (NMDPRA).
"We shall be participating actively in the public hearing where our position will be well articulated. We hereby call on the National Assembly to conduct a proper public hearing session where different views will be collated to amend the provisions in the bill and not just to tick the box."
We're worried by unnecessary criticism by political elites -- NECA
Throwing its weight behind the tax reform, the NECA, said that the bills will have far reaching positive consequences for nation, if enacted into law.
Director-General of NECA, Wale-Smatt Oyerinde, told Vanguard: that it is worrisome that a Bill that should ordinarily attract a warm welcome from the political elites is facing unnecessary criticism and backlash
"NECA affirms its support for the Tax Reform Bills because of the far reaching positive consequences of its enactment. It is instructive to note that the organized private sector is a member of the Committee and played a very important role in the engagements with various stakeholders. It is thus worrisome that a Bill that should ordinarily attract a warm welcome from the political elites is facing unnecessary criticism and backlash," he said.
Tax isn't a tool for economic growth - Senate C'ttee
Meanwhile, the Chairman, Senate Committee on Finance, Sani Musa (APC, Niger East), has argued that contrary to speculations in some quarters, an upward review of taxes, on its own, does not drive economic growth.
Musa, whose committee is considering details of the Tax Reform Bills sent by the Executive branch, said this while responding to questions from journalists shortly after the Passage of the MTEF/ FSP2025-2027, in Abuja, yesterday.
He said: "Every country that wants its economy to change must, from time to time, look at those parameters to move its economy. I have said it times without numbers on the floor that tax isn't a tool for economic growth. What will change the face of any economy of any nation is production. It is out of that production that you will be able to make the taxes, you will be able to realize the taxes."
The Senate Committee Chairman whose panel is expected to turn in its report on the Tax Reform Bills within six weeks, appealed to Nigerians for patience.
He assured that the National Assembly especially the Senate would take into cognizance concerns raised by the various segments of Nigerians and reach a conclusion that would be beneficial to all in the long run.
He continued: "The issue of tax reform is with us but we are doing wider consultations. It isn't about this region or that region. For me, it is about Nigeria. What is good for me should also be good for my brother. And what is good for my brothers should also be good for me.
"So, the answer I will give you about this is to allow the committee, allow the National Assembly to do the needful. At the right time, we will make the right statement about this."
In a related development, Senator Jimoh Ibrahim (APC, Ondo South), said Nigeria needs to spread its tax net to capture a large chunk of taxable entities, lamenting that under the current tax regime, at least 72 percent of those who should be taxed are excluded.
"The Gross Domestic Product ( GDP) to tax ratio is 18%. About 72% are left out of the tax net. We should be worried that 72% are not in the tax net. I am not saying we should go and tax the poor population but the rich need to do more in these difficult times," he said.
Governors soften stance on Tax Reform
Also, there are strong indications Governors are beginning to soft-pedal on their initial stance on the controversial Tax Reform Bill.
Nasarawa State Governor, Abdullahi Sule that if the Chairman, Presidential Committee on Fiscal Policy and Tax Reform, Taiwo Oyedele, had informed the governors that a new model of 60% VAT distribution for better equity was part of the reform, the position of the governors would have been different.
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Governor Sule, who had earlier the VAT revenue sharing aspect of the bills, spoke at a Town Hall conversations on the bills aired by Channels Television, on Monday night
At the three-hour town hall conversation, prominent Nigerians like former Speaker of the House of Representatives, Hon Yakubu Dogara; Chief Executive Officer of Global Investments and Trade Company, Baba Yusuf; and Mr Taiwo Oyedele among others spoke.
Governor Sule, who made his contribution at the tail end of the televised programme via telephone conversation, said if the Town Hall had taken place earlier, the Governors wouldn't have taken the position they took, calling for the withdrawal of the bills from the National Assembly, a few weeks ago.
The governor said: "I have listened to clarifications made on perceived misgivings by the Governors' Forum and some other critical stakeholders about the Tax Reform bills and getting inclined to the proposed reform, particularly in the area of elimination of multiple taxation.
"Some of us who are governors today were in the recent past key players in the companies that generate and pay heavy VAT to government coffers and clearly understand the lopsidedness of proceeds sharing being aimed to correct now.
"Specifically, if Mr Taiwo Oyedele had informed the governors that a new model of 60% VAT distribution for better equity is part of the reform as he clarified at this Town Hall Conversation, there wouldn't have been much disagreement from the onset, meaning that the conversation being done now was what the Governors' forum requested for before forging ahead with processing the bill for consideration at the National Assembly."
Reps in rowdy session over comment on tax bill
Meanwhile, the plenary session of the House of Representatives was rowdy, yesterday, following a comment by the House spokesperson and Chairman, Committee on Media and Publicity, Akin Rotimi on the controversial tax bills.
Trouble started when Rotimi stood up to present a report on Nigeria's content development and monitoring, on behalf of the Committee chairman, Rep Boma Goodhead, who was absent.
Rotimi said: "My name is Akin Rotimi Jr. I represent the people of Ekiti North comprising Ikole and Oye Local Governments. Mr Speaker, I am from Ekiti State, the first state whose National Assembly Caucus has unanimously endorsed the tax bills."
At this point, lawmakers got offended and began to chant 'No, No, No,' and the house was thrown into a rowdy session.
Speaker Tajudeen Abass, however, waded in, saying: "He is expressing his personal opinion. He was just talking on a lighter note. Let's not take it seriously.
"Restrict yourself to the person you are representing here. We are not talking about tax bills. It is a very controversial issue."
He therefore asked Rotimi to withdraw the statement, saying: "You know this is a controversial issue. I don't want you to be mentioning things that are not relevant to the subject matter. On your behalf, I withdraw that statement that you have made."
In response, Rotimi apologized and withdrew the statement but members were very angry and demanded he step down the report.
He was forced to step the report down.
"I seek the leave of the Speaker and Hon members to step down the report", he said.
