*The Arewa Consultative Forum, a Northern Nigeria interest group, explains reasons it has recommended the retention of current 7.5 percent rate of Value-Added Tax, among others, as part of a comprehensive set of observations and recommendations on the Tax Reforms Bills currently before the National Assembly, in Abuja, FCT

Gbenga Kayode | 绿帽献妻

In view of the current socioeconomic challenges facing consumers, organisations and businesses in Nigeria, the Arewa Consultative Forum (ACF), a Northern interest group, has recommended the retention of the 7.5 percent rate of Value-Added Tax (VAT) in the Tax Reforms Bills before the National Assembly (NASS), in Abuja, FCT.

绿帽献妻 learnt the ACF recommendation is contained in a comprehensive set of observations and recommendations submitted to NASS on the Executive Tax Reforms Bills.

The Federal Government at the public hearing Monday, February 24, 2025, restated that the Tax Reforms are designed to effect a sweeping overhaul of age-long tax laws in the country’s economy.

The Northern group’s position on the Tax Reforms Bills is said to be the outcome of a special purpose committee of experts, which the Board of Trustees of ACF set up to study the bills for appropriate recommendations to the government.

Tukur Muhammad-Baba, National Publicity Secretary of ACF, in the report, said the retention of the 7.5 percent extant rate of Value-Added Tax is in consonance with the realities of current economic challenges facing Nigerian consumers and businesses.

The ACF also urged improved efficiency of VAT collection, improvements to revenue collection through the formalisation of the informal sectors, and the use of digital technologies, as well as the vigorous expansion of Nigeria鈥檚 tax base through encouraging private sector investments.

The Forum also recommended that VAT on agricultural equipment should be removed, and the words 鈥渟upply and supplies鈥� in Chapter 6 (VAT), Part 1, Sections 143, 144, 145, and 147 of the Tax Administration Bill should be changed to 鈥渃onsumption or consumptions鈥�.

The Northern Forum further proposes the term 鈥渄erivation鈥� to be clearly and unambiguously defined, while its distribution should be based on consensus reached through consultation with states and local governments as well as the advice of the Revenue Mobilisation and Fiscal Commission (RMFC).

The group as well recommended drastic reduction of the powers of the Chief Executive Officer (CEO) and Chairman of the Board of Directors/Governance of the Joint Revenue Tax Board.

According to ACF, the proposed provisions amount to attributing and concentrating almost absolute powers of supervision and accountability on a single person.

It called for the replacement of the eight proposed coordinating Directors with six Executive Directors from each geographical zone, while the executive directors must be nominated by the president and confirmed by the Senate.

The Forum’s other recommendations include the retention of TETFUND and NITD through re-couching Section 69 of the proposed Nigeria Tax Bills as Development Levy, which should be shared with TETFUND, NITDA, NASENI, and the Education Loan Fund.

The ACF, therefore, encouraged all concerned stakeholders to engage, and make their submissions to the relevant Senate and House of Representatives Committees of NASS undertaking public hearings on the proposed tax bills.

The group stated: 鈥淓very interest group is encouraged to take the public hearings seriously enough as to contribute to the emergence of robust laws that will stand the test of time and in the national interest.鈥�

Senate begins 2-day Public Hearing on Tax Reforms Bills

In a related development, the Nigerian Senate commenced a two-day public hearing on proposed Tax Reforms Bills, attracting key stakeholders from economic and financial sectors of the country’s economy.

绿帽献妻 reports among others in attendance at the session are Mr. Wale Edun, Honourable Minister for Finance and Coordinating Minister of the Economy; Mr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS); Malam

Mele Kyari, Group CEO of the Nigerian National Petroleum Company Limited (NNPCL); Mr. Adewale Adeniyi, Comptroller General of Nigeria Customs Service (NCS), as well as members of the Federal Executive Council (FEC) and Heads of relevant government agencies, among others.

Speaking at the opening of the two-day Public Hearing on Tax Reforms Bills, Senator Sani Musa, Chairman of the Senate Committee on Finance, assured that the process would be transparent and guided by national interest.

Tax Reforms to ensure equity, fairness, and inclusivity in economy: Committee Chair

The Federal lawmaker stated that public hearing aims to review and reform Nigeria’s tax laws in line with current economic realities.

The Chairman of the Committee also stressed the tax reforms are designed to ensure equity, fairness, and inclusivity while eliminating inefficiencies in existing tax policies.

Senator Musa further encouraged all stakeholders and the general public to actively participate in the discussions.

He as well underscored significance of collective contributions in shaping a tax system that promotes economic growth and national prosperity in the Nigerian economy.

Kindly Share This Story