NEWS AGENCY OF NIGERIA
Economy/Business

MSMEs ‘ll thrive with tax exemptions under new reform bill – SMEDAN

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By Lucy Ogalue

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) says the proposed tax reform bill will significantly reduce financial burden and create a growth-enabling environment for small business owners.

The Director-General of SMEDAN, Mr Charles Odii, said this at a stakeholder engagement on tax reforms organised by the agency on Friday in Abuja.

The News Agency of Nigeria (NAN) reports that the theme of the event was, “Understanding the Tax Reform Bills:Benefits and How MSMEs can maximise Tax”.

Odii said that the bill, when passed into law, would eliminate multiple taxations and exempt businesses earning below N100 million annually from key taxes.

“We have 39,654,385 nano, micro small and medium enterprises (MSMEs)in Nigeria, and the first step towards ensuring their success is sensitisation.

“Many small business owners are unaware that if this tax reform bill is passed, they will no longer be required to pay VAT, CIT, PAYE, and several other taxes,” he said.

According to Odii, the reform is designed to encourage business formalisation and expansion without the fear of excessive taxation.

He also commended the House of Representatives for passing the bill and urged the Senate to follow suit.

“When small businesses flourish, the entire economy benefits. This reform will remove unnecessary regulatory bottlenecks, allowing MSMEs to thrive,” he said.

The President of the Nigeria Association of Small and Medium Enterprises (NASME), Dr Abdulrashid Yerima, also lauded the proposed reforms.

Yerima said that the bill addressed key challenges faced by MSMEs, particularly multiple taxation and arbitrary levies by regulatory agencies.

“Our members have long struggled with excessive taxation at different levels; import duties, levies on turnover, and arbitrary charges from state and local governments.

“The chairman of the Tax Reform Committee has clarified that many of these burdens will be eliminated once the bill becomes law,” Yerima said.

He further emphasised the need for proper implementation to ensure that non-state actors and unauthorised tax collectors did not continue to impose levies on small businesses.

He said that the reform would promote economic growth by allowing small businesses to reinvest their earnings, scale operations, and create more employment opportunities.

The Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, emphasised the necessity of overhauling the tax system to foster economic growth and alleviate the tax burden on small businesses.

Oyedele reiterated the challenges faced by small business owners, including multiple taxation and exploitation by revenue officers.

He said that many entrepreneurs lacked the resources to navigate complex tax demands, making them vulnerable to undue pressures.

“To address these issues, the committee proposed significant reforms, such as eliminating Value-Added Tax and withholding tax for businesses with annual turnovers below N100 million.

“Additionally, salaries up to N100,000 per month would be exempted from Pay-As-You-Earn (PAYE) tax.

” These measures aim to reduce the administrative burden on small enterprises, allowing them to focus on growth and innovation,”he said.

Oyedele underscored the importance of data-driven policy-making, referencing collaborations with organisations like the Faith Institute to gather credible data on the challenges faced by small businesses.

He said that the strength of a nation was reflected in how it treated its most vulnerable citizens.

He advocated for reforms that provide small businesses with the space to thrive without undue tax pressures.

“These reforms are designed, not merely to generate revenue, but to create a more equitable and supportive environment for small businesses, thereby laying a sustainable foundation for Nigeria’s economic growth and development,” he said.

Earlier, Mrs Linda Omubo-Pepple, SMEDAN’s Director of Partnership and Coordination, said that collaboration between policymakers and business stakeholders was important in shaping Nigeria’s tax policies.

Omubo-Pepple said that tax reforms played a critical role in driving economic growth while ensuring the sustainability of MSMEs.

“As we navigate the tax reforms, it is essential that we foster open dialogue between policymakers and business stakeholders.

“The impact of these reforms will be felt across industries, and this session provides a unique platform to engage, share insights, and collectively address key concerns,” she said.

The meeting, attended by key MSME stakeholders and representatives of the Federal Government, also provided a platform for business owners to ask questions and gain clarity on the provisions of the reform bill. (NAN)

Edited by Kadiri Abdulrahman

Economy/Business

KADIRS rakes N14.16bn IGR in 2 months

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By Sani Idris-Abdulrahman

The Kaduna State Internal Revenue Service (KADIRS), said it has collected N14.16 billion revenue between January and February 2025, while debunking claims of a decline in Internally Generated Revenue (IGR).

The KADIRS Head of Corporate Communications, Zakari Muhammad, disclosed this in a statement issued to newsmen on Friday in Kaduna.

He said the service was prompted by a recent mischief claiming a decline in the state’s IGR under the administration of Gov. Uba Sani.

Muhammad said in January and February 2025, the state had already collected an IGR of N7.47 billion and N6.69 billion respectively, making a total revenue collected to N14.16 billion in the two months.

He equally said that a validation of the reforms in the state’s revenue sector under Sani, collected an IGR of N62.48 billion and N71 billion, in 2023 and 2024, respectively.

This feat, he said, consolidated the state’s place as the leading IGR performing state in Northern Nigeria in the last two years.

Muhammad said, “The current level of IGR collection of the state, speaks to the competence of the Chairman and the management team of the service.

“We are also extolling the support we are enjoying from the state government to function as a professional and apolitical revenue authority of the state.”

The spokesperson said that the rumor circulating that the former Executive Chairman of the KADIRS was removed for calling out the state’s House of Assembly Speaker for refusing to pay taxes was baseless.

Muhammad stated that the former executive chairman served his entire four-year tenure as provided in the Kaduna State Tax Codification and Consolidation Law, after which a new Executive Chairman was appointed by the Governor.

He added that in the last two years, the state had implemented innovative revenue administration reforms.

They included the introduction of an integrated tax administration portal (PAYKADUNA), financial inclusion initiatives, enhanced taxpayers and stakeholders’ engagement.

Muhammad also said the service deployed a first-of-its-kind interactive voice response system for taxpayer complaint redressal, among other initiatives that had resulted in improved tax administration in the state.

According to him, the automation efforts of the service had ensured that a process exists for facilitating collections.

“Payments are made through the PAYKADUNA portal or via pay direct channels from which they are swept directly into the state’s Treasury Single Accounts, ensuring that staff of the service have no access or interaction with state collections.

“The IGR account is a collection and transit account not an expenditure account.

“Therefore, it is highly inaccurate to think that any amount can be withdrawn from it to service any interests.

“It is also noteworthy that the service has never received any instructions to facilitate any 100 million naira payments to any individual or organisation,” he said.

Muhammad reiterated that KADIRS was an autonomous agency of the state, insisting, “it is committed to its mandate of facilitating seamless and efficient revenue mobilisation for service delivery without fear or favour to any individual or group.” (NAN)(www.nannews.ng)

Edited by Bashir Rabe Mani

 

Economy/Business

FCT-IRS seals 3 business premises over unpaid taxes

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By Nana Musa

The Federal Capital Territory Internal Revenue Services (FCT-IRS) on Friday, sealed the business premises of Phase3 Telecom and Cilantro Restaurant in Abuja, for failing to pay their tax obligations.

Mr Festus Tsavsar, acting Director, Legal Services, FCT-IRS, told journalists after the exercise in Abuja, that Phase3 Telecom, located at No 4, Yedseram Street, Maitama, was sealed over unpaid tax obligations.

Tsavsar, who is also the Head of the Enforcement Team, added two of Cilantro business premises were sealed for not filing its annual returns.

One of the premises is Cilantro Village, located inside Sarius Palmetum and Botanical Garden, Babangida Boulevard, Maitama, Abuja, while the other premises is located at Wuse Zone 5.

He explained that the action became necessary after several notices had been served on the defaulting taxpayers, but they refused to pay.

He said that Phase3 Telecom was owing the FCTA huge tax liabilities for three years

He added that the FCT-IRS had sent demand notices to the company several times, for more than three years, yet the company refused to pay.

“We invited them for a meeting, they came, wrote several undertakings but refused to pay the tax liabilities,” said.

For Cilantro, the director said that the company refused to file its tax returns for more than three years despite being served with several notices.

“We have written to them several times and they refused to file their returns; we invited them for a meeting, and they refused to honour the invitation,” he added.

Tsavsar said that to enforce compliance, the FCT-IRS had no choice other than to approach the court for a Court Order to seal off the business premises of defaulting taxpayers.

He assured the affected businesses that the premises would be unsealed once they settle all their tax obligations.

He said that the revenue services had carried out massive sensitisation campaigns, enlightening taxpayers about their tax obligation and encouraging them to pay voluntarily.

According to him, the revenue service will be going after every defaulting taxpayer and closed down business premises that refused to settle their tax obligation.

“We are, therefore, calling on tax defaulters to do the needful or risk the wrath of the law.”

The News Agency of Nigeria (NAN) recalls that the FCT-IRS had given employers of labour Jan. 31 to file their employees’ annual returns for 2024.

The revenue service also gave individuals until the end of March to file their returns. (NAN)

Edited by Philip Yatai

Economy/Business

FCT-IRS to set up service kiosks in plazas, markets

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By Nana Musa

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has concluded plans to establish service kiosks in plazas and markets in Federal Capital City and the six area councils.

Mr Michael Ango, acting Executive Chairman, FCT-IRS, disclosed this in Abuja on Thursday, during the service’s annual sensitisation campaign to mobilise FCT residents for voluntary tax compliance.

Ango explained that the move was to bring services closer to the people and promote voluntary tax compliance.

“Apart from sensitisation to promote voluntary tax compliance, very soon you are going to see us setting up kiosk offices in the plazas and the markets, both within the city centre and in the area councils.

“The whole idea is that we need to reach out to taxpayers wherever they are,” he said.

He noted that one of the complaints of taxpayers was that they were not seeing what their taxes were being used for.

He, however, pointed out that that was not the case in FCT.

“I believe that wherever you stay in the FCT, you will see at least some presence of the FCT Administration within your area.

“This could be roads, streetlights or one form of construction or the other and a lot of work is still being done,” he said.

Ango added that the FCT-IRS has 16 tax offices spread out across the city, adding that the service would be expanding into some of the areas without offices.

He also said that the service was going to partner with the market associations, the informal sector and the area councils to boost IGR collection in the FCT.

He appealed for the support of the public on voluntary compliance, saying, “Abuja is a city that needs revenue for development”. (NAN)

Edited by Philip Yatai

Economy/Business

Tax Reform Bills: Customs duties beyond revenue collection– expert

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By Martha Agas

A customs and tax expert, Mr Okey Ibeke, says the duties of the Nigeria Customs Service (NCS) is not only limited to revenue collection but involves highly technical operations.

Ibeke stated this on Thursday in Abuja, following a public hearing on tax reform bills organised by the Special Committee on Tax Reform Bills on Wednesday.

He described the NCS as a specialised agency requiring advanced skills to effectively carry out its functions, adding that the proposed tax reforms could undermine its other specialised and critical operations.

The News Agency of Nigeria (NAN) reports that the proposed reform bills include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill.

The Comptroller-General (C-G) of the NCS, Adewale Adeniyi, had stated that the proposed tax reforms aligned with President Bola Tinubu’s commitment to an efficient tax system for the country.

Ibeke, however, said that the reform if passed in situ could jeopardise the customs service’s ability to perform its core functions.

He expressed concern that designated revenue agencies may lack the technical expertise, specialised workforce and training to handle the assigned operation of the NCS.

According to him, these agencies might struggle to detect undervalued or misclassified goods, potentially leading to the acceptance of inaccurate importer declarations.

“Customs involves classifying cargo, understanding tariff classifications, and conducting customs valuations.

“Without the expertise to classify cargo and determine the applicable duty rates, there will be significant challenges. Only well-trained customs personnel can effectively perform these functions,” he explained.

He added that NCS operations require applying Rules of Origin (RoO), which is essential for determining a product’s original source.

RoO, he said, is critical for assessing the value of imports, calculating appropriate revenue, and identifying fraudulent practices.

He said that these are tasks that general tax administration systems could be ill-equipped to handle.

Ibeke warned that passing the bills without necessary adjustments could render the NCS redundant and negatively impact revenue generation.

“Is the Federal Government planning to dismantle the customs service? Will they employ customs officers to work in the new agency? Will they create offices for them within the agency?

“ This could lead to confusion. Ultimately, the government, which aims to maximise revenue, stands to lose the most,” he said.

Ibeke pointed out that the NCS has already made significant strides in modernising its operations through its Trade Modernisation Project.

“The deployment of the ‘B Odogwu’ software, for instance, has contributed to increased revenue collection and positioned the service to surpass its 2025 revenue target,“ he said.

He urged the Federal Government to increase funding for the NCS to address revenue collection challenges rather than repealing the 2023 NCS Act, which took over eight years to pass into law.

“The NCS has established infrastructure and is leveraging technology to facilitate trade. Repealing the Act now will undermine these efforts and hinder progress,” he said.

NAN reports that during the public hearing, the C-G emphasised the importance of ensuring that the final bills do not contradict the Act, thereby preserving the agency’s core functions and operational efficiency.

Ibeke called for a balanced approach that would strengthen Nigeria’s tax system without compromising the critical functions of the existing critical revenue agencies. (NAN)(www.nannews.ng)

Edited by Ismail Abdulaziz

General News

Governors meet over tax reform, others

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By Emmanuel Oloniruha

The 36 state governors, under the aegis of the Nigeria Governors’ Forum (NGF), are meeting in Abuja to discuss tax reform and other national issues.

The News Agency of Nigeria (NAN) reports that the meeting is chaired by the forum’s chairman, Gov. AbdulRahman AbdulRazaq of Kwara.

Governors from Oyo, Anambra, Bauchi, Jigawa, Lagos, Ogun, Abia, Ebonyi, Bayelsa, and Akwa Ibom are in attendance.

Also present are the deputy governors of Kaduna and Zamfara.

Speakers of State Houses of Assembly are also attending the meeting.

At its Jan. 17 meeting with the Presidential Committee on Fiscal and Tax Reforms, the NGF endorsed a revised Value Added Tax (VAT) sharing formula.

The proposed formula allocates 50 per cent based on equality, 30 per cent on derivation, and 20 per cent on population.

On Wednesday, the Federal Government inaugurated 50 newly appointed Tax Appeal Commissioners to strengthen economic reforms and revenue generation.

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, underscored the commissioners’ vital role in enhancing revenue collection.

He highlighted the importance of the Tax Appeal Tribunal (TAT) in ensuring fair tax dispute resolution, fostering investment, and promoting a business-friendly environment. (NAN) (www.nannews.ng)

Edited by Abdulfatai Beki / Kamal Tayo Oropo

Economy/Business

Lawmakers canvass tax incentives for small businesses in FCT

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By Naomi Sharang

Some members of the House of Representatives have advocated for tax incentives for small businesses in the Federal Capital Territory (FCT) to thrive.

The lawmakers made the call at the unveiling of an entrepreneurial centre, Dreamskin Luxe Empire, in Abuja on Friday.

The News Agency of Nigeria (NAN) reports that the unveiling of the centre was to commemorate St. Valentine’s Day.

Rep. Chinedu Obika, representing Abuja Municipal/Bwari Federal Constituency, specifically described FCT as a thriving environment for businesses.

Obika called on the FCT Minister, Nyesom Wike and others to prevail on tax administrators not to multi-tax small scale business owners.

He said that multiple taxes would discourage entrepreneurship and development in the area councils, as some of the tax administrators collected tenement rates, business premises tax and all kinds of taxes.

According to him, they should be able to harmonise the taxes in order not to put too much pressure on businesses and force them to close down.

“This is because when businesses are closed, the people who are engaged in them will fall back to the streets; and an idle mind is a devil’s workshop.

“So the area councils, it is their duty to make sure that the businesses are encouraged through tax rebates or tax reduction.

“I am appealing to the Area Council Chairmen who represent AMAC and Bwari Area Councils, to look into the way and the model they are using to tax businesses in Abuja.

“Businesses like this that have sprung up should be encouraged. Instead of taxing them more, you should give them tax incentives to encourage them to employ more people or create more businesses.

“This will help to reduce unemployment. So we should be talking to them to make sure that they don’t double-tax these small, young businesses that are springing up,” he said.

Also speaking, Rep. Ikenga Ugochinyere, representing Ideato Federal Constituency, said that the Tax Reform Bills, when passed, would give strong encouragement to small businesses.

Ugochinyere said that they would also ensure that the tax pressure was moved to big businesses, thus limiting the impacts on small businesses.

On her part, Rep. Chinwe Nnabuife, representing Orumba North/South Federal Constituency, called for more public/private partnerships to tackle unemployment in the country.

Nnabuife also called for youth empowerment, saying that it would tackle restiveness and agitations.

“When you empower somebody, you are giving the person the go-ahead to explore and to be self-sufficient,” she said.

Similarly, Rep. Mohammed Jamilu, representing Faskari/Kankara/Sabuwa Federal Constituency, called for collaborative efforts to tackle unemployment in the country.

“Relevant players in the private sector should partner with the government to address unemployment and ensure youth empowerment in order to curb insecurity and other social vices in the society.

Earlier, Mrs Nancy Irole, the Chief Executive Officer of the centre, said that seeing the Spa unveiled was ‘a dream come true’.

“Dreamskin Luxe Empire isn’t just a spa or a beauty lounge. It’s a place designed for Nigerians to check their wellness as they go about their normal businesses.

“It is a space where beauty, wellness and self-care come together to create an experience that leaves you feeling refreshed, confident and completely at ease,” Irole said. (NAN)

Edited by Florence Onuegbu and ‘Wale Sadeeq

Politics

ACF ’ll unveil position on tax reform bills soon– Sec.-Gen.

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By EricJames Ochigbo

Abuja, Feb. 5, 2025 (NAN) Arewa Consultative Forum (ACF) says it will soon made known its position on the Tax Reform Bills forwarded to the National Assembly by President Bola Tinubu in October 2024.

Secretary-General of ACF, Mr Muritala Aliyu, stated this in an interview with the News Agency of Nigeria (NAN) in Abuja on Wednesday.

NAN reports that the ACF is a quasi-political and socio-cultural organisation seeking to promote the political interest of the people of the northern part of the country.

NAN also report that the tax reform bills are: Nigeria Tax Bill, Tax Administration Bill, Nigeria Revenue Service Establishment Bill and Joint Revenue Board Establishment Bill.

The bills seek to provide fiscal framework as well as clear and concise legal frameworks for all the taxes in the country and reduce disputes in tax administration.

Aliyu acknowledged the need for tax reforms as a way of expanding the tax net and ensuring effective tax collection in the country.

“We agree that the tax system needs to be reviewed, re-evaluated and reformed. We believe that people should be taxed appropriately because a lot of people don’t pay tax.

“We also believe that there should be more efficiency in collection of taxes. We are forward to a mechanism within the tax system that will be able to allocate resources on the basis of consumption and derivation principle,” he said.

The secretary-general said that the forum was concerned about the operationalisation of some of the clauses in the bills when they were eventually passed into law.

He said that the derivation clause in the bill did not capture the interest of the north, while the one on family capital gain tax dealing with inheritances did not align with the existing Islamic principles practiced by Muslims in the north.

“On the tax controversy, we have a committee headed by former Gov. Mohammed Makarfi of Kaduna State, alongside some experts in finance and taxation, academicians and lawyers to look at the bills and come up with recommendations.

“We have the report and we have submitted it to the northern caucus in the National Assembly, both Senate and the House of Reps and the Northern Governors’ Forum; we have also given copies to the traditional institution.

“By the end of this week, the report should be available to the media. These are some of the things we are doing to address some of the challenges in the country,” he said. (NAN)

Edited by ‘Wale Sadeeq

Economy/Business

FCT Internal Revenue Service partners EFCC to enhance tax compliance

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By Philip Yatai

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has sought collaboration with the Economic and Financial Crimes Commission (EFCC) to enhance tax compliance in the territory.

The acting Executive Chairman of the Service, Mr Michael Ango, solicited for the partnership when he visited Executive Chairman of the EFCC, Mr Olanipekun Olukoyede, in Abuja on Wednesday.

Ango explained that the partnership was in line with the mandate of the FCT-IRS to collaborate with relevant agencies such as the EFCC towards improving tax compliance in the FCT.

He disclosed that one of the major initiatives of the FCT-IRS in 2025 was the harmonisation of revenue collection and administration in the FCT.

This, he said, would not be achieved without the support and collaboration of all stakeholders including anti-graft agencies.

“This is to ensure that all revenue due to the FCT is collected and accounted for in a transparent manner, enhance ease of doing business and improve revenue generation.

“This will further consolidate the massive infrastructural development in the territory by FCT Minister Nyesom Wike,” he said.

He argued that most suspects being investigated by EFCC for financial crimes were not tax compliant.

Ango added that it would be helpful if the suspects’ tax obligations would also be interrogated as part of EFCC’s investigation processes.

According to him, this approach can also be extended to forfeiture of assets or monies of suspects to the EFCC by the courts.

“When suspects are being investigated or charged to court, we will like to know, Mr Chairman, their tax compliance level.

“If they escape from one door, we can catch them through another door. We will, therefore, be happy to partner with you on this, like we are doing with your sister agency, the Nigerian Financial Intelligence Unit (NFIU),” he suggested.

The FCT-IRS boss condoled with the EFCC on the recent loss of its operative.

He also commended the commission’s chairman and his management team for the excellent work they are doing to tackle financial crimes in the country.

In his remarks, the EFCC boss thanked Ango and his team for the visit and expressed the commission’s willingness to partner with the FCT-IRS to improve revenue collection in the FCT.

Olukoyede said the commission had entered into similar partnerships with the Federal Inland Revenue Service (FIRS) and other State Internal Revenue Services.

He expressed the commission’s readiness to extend the same gesture to the FCT-IRS.

According to him, the move will enable the FCT-IRS to shore up its revenue collections.

He, however, stressed the need for a Memorandum of Understanding (MoU) to highlight the specific areas of collaboration, pointing out that MoU would further strengthen the relationship between the two organisations.

The EFCC chairman, who said he has been keeping tabs on Ango’s achievements since appointment as the FCT-IRS boss, also lauded the ongoing massive infrastructural development in the FCT.

“This shows that taxpayer’s money is being judiciously used across the territory for the benefits of all,” he said. (NAN)

Edited by Muhammad Lawal

General News

Are the tax reform bills elixir for Nigeria’s economy?

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By Kadiri Abdulrahman, News Agency of Nigeria (NAN)

 

President Bola Tinubu transmitted four tax reform bills to the National Assembly.

The bills are the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

They are expected to overhaul tax administration and revenue generation in Nigeria.

The tax reform bills are products of the Taiwo Oyedele-led Presidential Committee on Fiscal Policy and Tax Reforms inaugurated in August 2023, two months after Tinubu’s assumption of office.

From the onset, Tinubu had made it clear that tax reforms were a major focus of his administration, in order to lay a strong fiscal and revenue foundation for sustainable economic growth.

The bills seek to outline all taxes in the country hitherto administered by different laws and compress them into a single law.

They gave the Nigeria Revenue Service, which is expected to succeed Federal Inland Revenue Service (FIRS), powers to collect all national taxes.

However, shortly after the bills were presented to the National Assembly, diverse reactions and controversies started to trail them.

Some argue that the reforms are necessary to modernise the tax system, improve revenue collection, and support economic growth.

They point to the potential benefits of a simplified tax code, reduced tax rates, and increased investment incentives.

However, critics express concerns about potential negative impacts on businesses and individuals.

They argue that the reforms could increase the tax burden on certain sectors, discourage investment, and exacerbate income inequality.

The proposed changes to Value Added Tax (VAT) distribution have also sparked debate, with some regions expressing concerns about potential revenue losses.

The Northern Governors Forum is one group that kicked against the bills.

In a communique read by the forum’s chairman and Governor of Gombe state, Mohammed Yahaya, the governors specifically opposed the proposed amendment to the distribution of VAT to a derivation-based model.

They said that the proposed tax bills were not in the interest of the North and other sub-nationals.

“The contents of the bills are against the interests of the North and other sub-nationals, especially the proposed amendment to the distribution of VAT,” he said.

Yahaya said that the forum unanimously rejected the proposed tax amendments and called on members of the National Assembly to oppose the bill.

He called for equity and fairness in the implementation of all national policies and programmes to ensure that no geopolitical zone is marginalised.

The Borno State Governor, Prof. Babagana Zulum, said that if the reforms passed through the National Assembly, states would be disadvantaged, with Lagos State being the principal beneficiary.

Northern senators also called for the suspension of further legislative action on the bills, which have passed second reading in the Senate.

The lawmakers made the demand, citing potential adverse effects on Northern states.

Sen. Ali Ndume (APC-Borno), said that the Northern senators met with their governors and other leaders and agreed to advise for the withdrawal of the tax reform bills for further consultations.

Ndume said that it was in line with the suggestions of traditional rulers and the National Economic Council (NEC), adding that state assemblies in the region would also voice out their objections.

He said that some provisions in the bills clashed with the Nigerian constitution and would not stand.

The controversies around the bills have resulted to delay in them getting legislative attention.

The House of Representatives had earlier suspended debate on the bills due to public outcry and resistance from some Northern lawmakers.

The lawmakers who rejected the bills included 48 members from the North-East, 24 from Kano, and a former Governor of Sokoto State, Sen. Aminu Tambuwal, who represents Sokoto South Senatorial District.

The presidency, however, said that the four tax reform bills were not against the interest of the North or other regions.

Presidential Spokesman, Mr Bayo Onanuga, said that the reforms were designed to streamline tax administration and promote equitable economic development across the country.

Onanuga refuted claims that the bills recommended the dissolution of key federal agencies, like the National Agency for Science and Engineering Infrastructure (NASENI), Tertiary Education Trust Fund (TETFUND), and National Information Technology Development Agency (NITDA).

“Since the public debate around the transformative tax bills began, various political actors and commentators have tried to obfuscate the facts, deliberately misinforming and misleading the public.

“Unfortunately, most reactions are not grounded in facts, reality, or sufficient knowledge of the bills.

“While some commentators have attempted to incite the people against lawmakers, others have polarised one section of the country against another.

“The tax reform bills will not make Lagos or Rivers more affluent and other parts of the country poorer, as recklessly canvassed,” he said.

According to him, the bills will not destroy the economy of any section of the country.

“Instead, they aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living,” Onanuga said.

Also, the Director-General, National Orientation Agency (NOA), Lanre Issa-Onilu, said that the bills were not to oppress any region in the country.

Issa-Onilu said that they would ensure fiscal discipline and tax harmony, adding that they will harmonise taxation and prevent multiple taxation.

He urged members of the public to access the documents to critically peruse them before making comments in order not to misconstrue the whole essence of the reforms.

According to Uche Uwaleke, a Professor of Capital Market and the President of Capital Market Academics of Nigeria,
the proposed tax reforms represent a welcome development that will boost the capital market.

Uwaleke said that section 56 of the bills proposed a gradual reduction in the income tax on total profits of a company from the current 30 per cent to 27.5 per cent in 2025 and to 25 per cent from 2026.

“This reduction will go a long way in improving shareholders’ wealth and valuation of companies listed on the exchanges.

“In addition, what is considered as the threshold for small companies exempted from income tax has been increased from N20 million per annum, to a maximum gross turnover of N50 million per annum.

“It bears repeating that the reduced income tax rates and other generous incentives to small businesses will most likely spur business activities, and create more job opportunities essential for the growth of the capital market,” he said.

He said that one of the objectives of the bills was to simplify tax administration and reduce the number of taxes from over 60 to a single digit.

He said that this would go a long way in improving the ease of doing business in Nigeria, and also rub-off positively on the bottom line of listed companies.

“It is pertinent to note that the bills contain a number of tax incentives capable of uplifting the capital market.

“All said, the capital market in Nigeria needs fiscal incentives to gain traction.

” The implementation of the proposed tax reforms, as contained in the tax bills currently before the National Assembly, will help provide the needed elixir for the Nigerian capital market,” he said.

As the controversies rage, experts agree that the success of these tax reforms will depend on careful implementation and addressing the concerns of various stakeholders.

They suggest that finding a balance between revenue generation and economic growth will be crucial for their long-term effectiveness.(NANFeatures)

**If used, credit the writer and the News Agency of Nigeria (NAN)

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