Toba Owojaiye reporting
Abuja, Nigeria
The much-anticipated public hearing on Nigeria’s tax reform bills commenced at the House of Representatives, drawing critical stakeholders from various sectors of the economy. The session underscored the complexities of balancing fiscal responsibility, revenue generation, and economic incentives in a country grappling with inflationary pressures and investment concerns.
Truth Live News gathered the Nigerian Liquefied Natural Gas (NLNG) company took a strong stance, advocating for all exports to be zero-rated, emphasizing that any tax burden on exports could hurt Nigeria’s competitiveness in the global energy market. They also raised concerns over the proposed repeal of the Companies Income Tax Act (CITA), particularly the omission of Section 23(1)(k), which previously granted tax exemptions to specific industries.
The Fiscal Responsibility Commission aligned with the reform bills but pointed out a crucial timing conflict between the Joint Revenue Board Bill and the Fiscal Responsibility Act. They proposed an adjustment to ensure that reporting timelines to the Minister of Finance do not create administrative bottlenecks.
Meanwhile, the Federal Ministry of Industry, Trade & Investment emphasized the importance of tax incentives and exemptions as tools for economic stimulation. This position reflects the government’s attempt to balance tax revenue collection with attracting foreign direct investment and boosting local industries.
Tax professionals and advocacy groups presented mixed reactions. The Institute of Chartered Accountants of Nigeria (ICAN) fully backed the four tax reform bills, particularly highlighting Section 32 of the Nigeria Tax Administration Bill, which focuses on tax agent accreditation. However, the Chartered Institute of Taxation of Nigeria (CITN) made a strong case for keeping tax practice exclusive to accredited professional bodies, reinforcing the need for structured expertise in tax administration.
A notable recommendation came from the Association of Nigeria Taxation Students, which advocated for the continued allocation of TETFUND revenue beyond 2028, a move aimed at ensuring sustained funding for tertiary education infrastructure.
Concerns over institutional overlaps and revenue control were also raised. The Nigeria Customs Service (NCS) opposed the idea of being subsumed under the National Revenue Service (NRS), calling instead for enhanced collaboration between agencies. Similarly, the Trade Union Congress (TUC) voiced opposition to the proposed VAT increase beyond 7.5%, while also resisting the NRS’s attempt to take over PENGASSAN’s role in collecting royalties and fees in the oil and gas sector.
The Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) supported the bills and submitted its recommendations, while the Citizens’ Network for Peace & Development proposed a 60% derivation formula, which clashed with the position of the Nigeria Governors’ Forum (NGF) on revenue sharing.
A unique perspective came from the Supreme Council for Sharia in Nigeria, which advocated for reducing VAT to 5% or maintaining the current 7.5% rate. The Council also expressed strong opposition to the Development Levy and Inheritance Tax, citing concerns over their potential socio-economic impact.
The first day of the public hearing revealed deep-seated interests across industries and institutions, touching on issues of tax exemptions, VAT rates, jurisdictional overlaps, revenue allocation, and fiscal responsibility. As discussions continue today, the challenge for lawmakers will be navigating these divergent positions to craft a tax regime that balances revenue generation with economic sustainability.