If Nigerians genuinely seek economic growth and financial stability, we must recognize that taxation is not a choice. It is a necessity.
When President Bola Ahmed Tinubu introduced the Tax Reform Bills in October 2024, it signified another move toward creating a more efficient, transparent, and equal tax system (similar to removing fuel subsidies).
As with every big reform or decision, there will always be people who see change as an opportunity and those who see it as a threat.For many years, Nigeria’s tax structure was inefficient, with leakages, multiple taxes, and an overreliance on oil money.
Things changed when Dr. Zacch Adedeji became the Chairman, Federal Inland Revenue Service (FIRS), bringing transparency and efficiency.The proposed bills, Nigeria Tax Administration Bill, Nigeria Revenue Service Bill, Joint Tax Board Bill, and Nigeria Tax Bill, seek to simplify tax collection, reduce tax evasion, and ensure revenue is directed toward national development.
These measures will improve the ease of doing business, encourage investment, and establish a more equitable system in which big companies pay their fair share. With improved enforcement and fewer loopholes, the government can increase money without burdening citizens.
However, instead of seeing the big picture, some opponents focus on minor issues, rejecting the reform rather than strengthening it.
The public hearing on these bills has been a battleground of ideas, where stakeholders have voiced their support, scepticism, and outright opposition. Over the past 5 days, lawmakers, tax professionals, industry leaders, and even religious organizations have all voiced their opinions, offering perspectives that range from practical concerns to strongly held beliefs.
But amid the arguments, one thing is undeniable: Nigeria can not afford to maintain the status quo.Some religious groups, like the Supreme Council for Shariah in Nigeria and the Committee of FCT Imams Initiative, oppose the inheritance tax, claiming it violates religious rights.
But inheritance tax is not a new idea. It exists globally to promote economic fairness. Nigeria is not religious-rule. Our laws balance secular and customary principles.
If there are concerns, the bill can be adjusted to ensure fairness. However, rejecting it entirely distracts from the goal of building a tax system that benefits everyone.
The Trade Union Congress and others oppose raising VAT from 7.5% to 15 percent by 2030, fearing it will worsen the cost of living for everyday Nigerians. While their concerns are valid, the government needs revenue for infrastructure and social amenities.
A gradual increase, with exemptions for basic goods, can ease the impact. Many countries fund public services this way, and Nigeria can consider this approach.
The Nigeria Customs Service also raised concerns that the new tax laws will interfere with its duties. But this is not about power. It is about making things work better.
The reforms will help government agencies work together and fix long-standing problems in revenue collection. Fighting change will only slow down progress. Now that the hearings are over, the next step is to improve the bill where needed, not abandon it.
Those against it should ask themselves: Do we want a Nigeria where the rich avoid taxes while ordinary people struggle? Do we want to keep losing revenue due to loopholes? Or do we want a fair system where everyone contributes to national growth?While the Senate and House of Representatives have promised to thoroughly review the bill, Nigerians have much to gain from its passage.
This reform will enhance the economy, create a fairer tax system, and better livelihoods. If implemented effectively, it will ensure that the benefits of democracy reach everyone, not just a select few. The opportunity is here, we just need to seize it and make it work for everyone.
_Arabinrin Aderonke Atoyebi is the technical assistant on broadcast media to the executive chairman of the Federal Inland Revenue Service._
