How Tax Reform Bills Will Benefit All Nigerians – Expert

Arabirin Aderonke, the technical assistant on broadcast media to the Executive Chairman of the Federal Inland Revenue (FIRS), Zacch Adedeji, has explained how the much talked about Tax Reform Bill will Benefit Nigerians.

LEADERSHIP reports that the Bills have become a point of discussion in Nigeria, generating enthusiasm and concern among various stakeholders, and the general public.

In a statement on Saturday, Aderonke highlighted the importance of the Bills.

The statement reads: “Taxation is not just a tool for the government; it is a reflection of the way a country is supposed to run. When taxes are used properly, they can create fairness and drive prosperity. But when mismanaged, they deepen inequality and push people further into poverty.

“The time for change is now. The tax reform bills have successfully passed the Second Reading through the Senate and as these bills proceed to the Committee on Finance, the opportunity arises for more conversation about the direction of Nigeria’s tax system. This development is not just a procedural move; it is a step toward addressing the structural inefficiencies that have long plagued Nigeria’s tax administration.

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“The journey to reform Nigeria’s tax system has reached a stage, with recent developments in the Senate offering hope for a more equitable and prosperous future. The tax reform proposals, outlined in four bills; the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill have the potential to address long-standing economic challenges. Experts like Mr. Taiwo Oyedele and Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, have emphasized the urgent need for reform, underscoring the importance of immediate action.

These proposals aim not only to modernize tax policies but also to ensure fairness, improve revenue collection, and create a framework for national growth.

“These reforms are not only about numbers or policies. They are about choices. Do we continue to tax the small street vendor, barely making ₦30,000 a month, while big corporations find ways to avoid paying billions? Or do we choose a new path, where those with the most wealth contribute their fair share, and those struggling can breathe?

“VAT reform also stands out in these bills, aiming to clarify and improve the collection process. By simplifying the VAT structure and ensuring consistency across the board, these reforms will make it easier for businesses, especially SMEs, to comply with tax regulations and avoid the mistakes that have plagued them in the past.

“But beyond the technicalities of these bills, what motivated me the most is the potential for economic empowerment. The tax reforms are designed to enhance an environment where businesses, from the largest corporations to small local enterprises, can thrive. With clearer regulations, reduced tax burdens on the informal sector, and more efficient tax collection, the Nigerian economy can become more competitive, attracting both local and foreign investments. This is not just about tax; it’s about creating the conditions for growth.

“Change is never easy. It challenges those who have benefited from the current system and exposes years of neglect. The pushback will be strong. But we must ask: Why does a nation of over 200 million people raise less revenue than countries with much smaller populations? Why does Nigeria collect only ₦1.53 trillion in personal income taxes, while South Africa collects over ₦50 trillion? The gap is not small; it is massive, and it threatens our future.

“Reform is not a quick or easy fix. It is tough and slow. But what choice do we have? To delay these reforms is to condemn future generations to a life of debt. To resist is to accept that millions of Nigerians living in poverty will have no hope of change.

“Nigeria can potentially be an economic powerhouse, but it needs a tax system that supports growth rather than hinders it. President Bola Ahmed Tinubu has shown he is ready to make this choice. His creation of a task force made up of young professionals, private sector leaders, and government officials is not just political talk; it is a sign that this reform is about the future. With leaders like the Tax Boss, who has helped the Federal Inland Revenue Service achieve record-breaking revenues, this vision is within reach.

“Why should Nigerians pay attention? The proposed reforms carry the promise of a more equitable and efficient system, one designed to reflect the realities of our different economy. For years, Nigeria’s tax structure has been criticized for its complexity, inefficiency, and the undue burden it places on certain population segments. These bills seek to change that, providing a framework for fairer revenue generation and distribution while also tackling poverty through more effective public expenditure.

There’s hope that Nigeria’s tax system will evolve into something clear, fair, and conducive to prosperity. If this passes, it won’t just be a victory for the government; it will be a victory for all Nigerians.