Nigeria Considers Tax Reforms to Boost Revenue and Infrastructure Development

Nigeria is considering significant tax reforms aimed at modernizing the country's tax system and boosting revenue for infrastructure development. Senate President Godswill Akpabio criticized the low tax compliance rate among Nigerians, stating that less than 30% pay taxes, while 100% demand infrastructure improvements. He emphasized the need for reforms to ensure fair and efficient tax collection. The proposed reforms include the Nigeria Tax Bill (NTB) 2024, Nigeria Tax Administration Bill (NTAB) 2024, Nigeria Revenue Service (Establishment) Bill (NRSEB) 2024, and Joint Revenue Board (Establishment) Bill (JRBEB) 2024. These bills aim to simplify compliance, reduce bureaucracy, and foster economic growth. Akpabio highlighted the need to update outdated tax laws, some of which date back to colonial times, and address imbalances in tax revenue distribution, where host communities are deprived of resources. The Minister of Finance, Wale Edun, stated that the reforms align with President Bola Ahmed Tinubu's economic agenda, aiming to enhance compliance, broaden the tax base, and attract investment. However, concerns have been raised by the Chartered Institute of Taxation of Nigeria (CITN) regarding the empowerment of the Joint Tax Board to choose tax collection agents.