Bank Directors Call For Inclusive Tax Reform

The Bank Directors Association of Nigeria (BDAN) has stressed the need for the implementation of the ongoing tax reform in the country to be all-inclusive as it called for more consultation and continuous dialogue to ensure that the bill is  tailored towards economic growth.

The chairman of BDAN, Mustafa Chike-Obi stated this during a meeting with the chairman of the Presidential Fiscal Policy & Tax Reforms Committee, Taiwo Oyedele.

Commending the Committee’s commitment to addressing Nigeria’s fiscal challenges, he said the proposed reforms present an opportunity to eliminate inefficiencies and lay the groundwork for a more resilient and competitive economy.

Chike-Obi reiterated BDAN’s commitment to policies that strengthen Nigeria’s financial ecosystem, saying “as an association, we are aligned with initiatives that promote fiscal accountability and support sustainable economic growth. While we have no fundamental issues with the proposed reforms, it is imperative to ensure that their implementation is inclusive and considers the nuances of the banking sector.”

He emphasised the importance of consultation and continuous dialogue, adding, “The banking industry thrives on stability and trust. We urge the Committee to maintain open channels of communication, ensuring that reforms are both effective and equitable. Collaboration is key to achieving the common goal of a stronger economy.”

Also, BDAN’s chief executive, Bukola Orenuga  highlighted the importance of stakeholder engagement in shaping fiscal reforms. “Tax policy should be a shared vision between the government and the private sector. As representatives of the banking sector, we are committed to providing constructive input that will help create an enabling environment for businesses and individuals alike,” she said.

On his part, board member, BDAN and non-executive director of SunTrust Bank Nigeria Limited, Alhaji Yola, emphasised the need to reassess the corporate tax levied on companies, which significantly contributes to the high tax burden the Banks face.

“A comprehensive review of the current corporate tax rate of 30 per cent is essential to create a more enabling environment for Banks and other companies to thrive and support economic growth, and the economic objectives of the administration”.

Welcoming BDAN’s input, Oyedele stressed the importance of active participation from stakeholders during the policymaking process. “We extended invitations to public hearings earlier in the process, but unfortunately, many stakeholders did not respond. However, moving forward, we encourage more proactive engagement to ensure policies are well-rounded and inclusive,” he remarked.