The Speaker of the House of Representatives, Tajudeen Abbas, has called for a concerted effort to address Nigeria’s low tax-to-gross Domestic Product ratio of 6 per cent, stressing the need to stimulate the economy for maximum productivity.
Abbas made this statement on Monday during an interactive session on Tax Reform Bills organised by the House of Representatives at the National Assembly Complex, Abuja.
As exclusively reported by The PUNCH, lawmakers are currently engaging tax experts on the controversial tax bills under consideration by the National Assembly.
In his welcome address, Abbas explained that the session aimed to provide lawmakers with a comprehensive understanding of the proposed bills and their key provisions, facilitating constructive dialogue on contentious or unclear areas.
He stated, “Nigeria, despite being Africa’s largest economy, struggles with a tax-to-GDP ratio of just 6 per cent, far below the global average and the World Bank’s minimum benchmark of 15 per cent for sustainable development. This is a challenge we must address if we are to reduce our reliance on debt financing, ensure fiscal stability, and secure our future as a nation.
“The proposed tax reform bills aim to diversify our revenue base, promote equity, and foster an enabling environment for investment and innovation. However, as representatives of the people, we must approach these reforms thoughtfully, understanding their potential implications for every segment of society. Taxes should be fair, transparent, and justifiable, balancing the need for public revenue with the burdens they impose on individuals and businesses.”
Acknowledging the controversies the bills have sparked since their release, Abbas called for a measured and comprehensive debate to clarify contentious areas.
“The controversies surrounding these bills — whether in the media, civil society, or among governance stakeholders — are a reflection of their importance. Such debates are healthy and necessary in a democracy, and this session aims to channel those discussions into productive outcomes. It is critical that we listen to diverse perspectives, ask probing questions, and seek clarity on any unclear provisions,” he said.
He stressed that the House had not yet taken a position on the bills, stating, “The House has not yet taken a definitive position on these bills. Our role is to scrutinise them thoroughly, ensuring they align with the best interests of our constituents and the nation at large. We owe this duty to Nigerians.”