By: George Ozalla
President of the Senate, Senator Godswill Akpabio, has emphasized the urgent need for a comprehensive overhaul of Nigeria’s tax system, warning that the country risks stagnation if its tax administration is not reformed. Akpabio made this call at the opening of a two-day public hearing on proposed tax reform bills in Abuja yesterday.
The proposed tax reforms, which include four bills (SB 583, SB 584, SB 585, and SB 586), aim to streamline tax administration, reduce collection costs, and protect vulnerable taxpayers.
Akpabio, further stressed that the reform process is crucial for revamping the nation’s economy, as it will help harmonize revenue collection, enhance compliance, and leverage digital innovations to improve efficiency and fairness.
Akpabio’s call for robust tax reforms is timely, given Nigeria’s current economic challenges. The country’s tax system has been criticized for being opaque, inefficient, and burdensome on taxpayers. A well modernized tax system would not only boost revenue generation but also promote economic growth, create jobs, and reduce poverty.
As the President of the Senate, Akpabio’s leadership is crucial in driving the tax reform agenda forward. His commitment to creating a “robust, transparent, and business-friendly tax administration” is a step in the right direction.
The two-day public hearing, which began on February 24, 2025, provides a good platform for stakeholders to contribute to the tax reform process. The hearing is expected to conclude on February 25, 2025, with a communique outlining the key recommendations for the proposed tax reform bills.
