Senate sees tax reforms as Nigeria’s ticket to $1tr economy

• Lawmakers emphasise inclusivity, fairness
• Remove sections conflicting with Sharia, NSCIA urges Senate

The Senate has said the proposed Tax Reform Bills will serve as a critical step in achieving President Bola Tinubu’s vision of a $1 trillion economy.

Chairman of the Senate Committee on Finance, Sani Musa, made this assertion while addressing journalists in Abuja.

As the Senate intensifies efforts to finalise a new tax reform bill, key lawmakers emphasise the need for inclusivity and fairness in shaping the country’s economic future.

Meanwhile, the Nigerian Supreme Council for Islamic Affairs (NSCIA) urged the Senate to remove sections of the tax reform bills that conflict with Sharia law, particularly regarding marriage and inheritance.

Musa emphasised that the reforms were pivotal to strengthening Nigeria’s economic framework, adding that the committee would embark on a three-day retreat to review stakeholders’ submissions.

While responding to a question on the progress of the bills so far, Musa said: “You were all present at the hall there and you saw how the proceedings went. I can say everything was going seamlessly and smoothly because everyone that was in attendance that wanted to speak was given the opportunity to speak and we have seen a lot of people that spoke in alignment with what the President presented to the National Assembly.

“Also, few of them that have some divergent opinions also presented their case, and we are going to consider everyone that was there. So, it is not going to be a problem. We are going to give this country a legislation that is workable.”

On when the bills will be passed, he said, “We are going to work assiduously to consider every submission, every memorandum that had been given. We have the verbatim presentation people have done on record. We are going to review everything. During the three-day retreat, we are going to consult with experts.

“We are consulting also with the Office of the Attorney General of the Federation, to see how we can present a law or an Act that is workable, that would not conflict with the Constitution.”

When asked about recommendations from the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) and Nigeria Governors’ Forum (NGF), Musa affirmed that all perspectives would be evaluated on merit, regardless of their source.

Sen Abdul Ningi reiterated his stance on the tax reform bill, emphasising his initial reservations due to a lack of widespread consultation.

“As representatives of the people, we should have been consulted. Key stakeholders, including governors, were not engaged before the bill was introduced. It was rushed into the public arena, prompting widespread concerns, not just from the North, but across the country.

“Given the significance of tax policies globally, we should have taken more time to consult and negotiate to ensure a tax reform that truly reflects Nigeria’s needs.”

Over the past few weeks, Ningi had acknowledged that the tax reform bill had undergone significant modifications. “The public hearing process has helped shape the bill into one that aligns more with Nigeria’s realities. The debate has taken a national dimension rather than a North-South divide,” he noted.

While certain clauses, such as those related to state funding and tax increases, remain contentious, he expressed satisfaction that the bill evolved into one that prioritised national interest.

NSCIA, in a memorandum submitted to the Senate Committee on Finance, yesterday, called on the upper chamber to replace the term “ecclesiastical” with “religious” in a section of the bills, arguing that the wording presently in the bill could imply the exclusion of some religious groups.

The memorandum stated, “NSCIA, as the representative of all Muslims across the country, recommends that all major technical, political and socio-economic concerns raised by different groups should be equitably addressed to ensure broad satisfaction.

“The 1999 Constitution provides for the establishment of a Sharia Court of Appeal to handle Muslim personal laws, including marriage and inheritance. Therefore, any section of the bills that directly or indirectly undermines Sharia law would be unconstitutional and should be removed.”