The push to revamp Nigeria’s tax system has reached a critical stage, with over 200 memoranda submitted to the National Assembly by various stakeholders, signaling the intensity of the debate surrounding President Bola Tinubu’s proposed tax reforms.
During a public hearing at the Senate and House of Representatives, representatives from labor unions, industry groups, business leaders, civil society organizations, and policy experts presented their arguments—some in support, others voicing strong concerns.
A Nation Divided Over Tax Reforms
The tax overhaul aims to modernize Nigeria’s revenue collection framework, expand the tax base, and address the country’s fiscal challenges. However, opinions on the reforms are deeply divided.
Government officials and economic experts argue that these changes will enhance tax compliance, reduce the budget deficit, and create a fairer system. On the other hand, critics fear the proposed tax adjustments—especially to VAT and income tax brackets—could disproportionately affect small businesses, low-income earners, and struggling industries.
The Nigerian Labour Congress (NLC) strongly opposed any tax policies that could further burden workers, calling instead for a progressive tax system that ensures wealthier individuals and corporations pay a fair share. Similarly, the Manufacturers Association of Nigeria (MAN) warned against tax hikes on raw materials, cautioning that it could drive up production costs and harm local industries.
Business Leaders and Civil Society Weigh In
The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) advocated for simplified tax procedures, arguing that a complicated system discourages compliance and stifles business growth. They also pushed for lower corporate taxes to attract investment and create jobs.
Civil society organizations, including Tax Justice Network Africa, called for more transparency in tax collection and stricter measures to prevent tax evasion by multinational corporations. Meanwhile, legal experts from the Nigerian Bar Association (NBA) emphasized the need for a clear legal framework to prevent confusion and disputes.
What’s Next?
As lawmakers sift through the submitted memoranda, the pressure is on to create tax policies that balance economic growth, government revenue, and social equity. While there is broad agreement that Nigeria needs tax reform, the challenge lies in ensuring the final policies serve both businesses and citizens without deepening economic hardships.
With the debate still unfolding, all eyes remain on the National Assembly as it navigates the tough decisions that will shape Nigeria’s economic future.
