May 27, 2025

The Chairman of the Nigeria Economic Summit Group (NESG), Mr. Niyi Yusuf, and the CEO of Emerging Africa Capital, Mrs. Toyin Sanni, have urged the federal government to curb its borrowing and enhance tax collection efforts. They made these remarks during the Vanguard Economic Discourse held yesterday, where key stakeholders gathered to deliberate on the theme, “Taming Inflation and Stimulating Growth.” Both Yusuf and Sanni acknowledged that inflation has become a serious challenge and proposed a range of policy measures including the elimination of fuel subsidies, stronger coordination between fiscal and monetary authorities, and reduced government expenditure to drive economic growth. Mr. Yusuf emphasized the need for the government to boost efficiency and transparency by reassessing untargeted subsidies, tax waivers, and incentives. He advocated for increased non-oil revenue through the expansion of the tax base and improved tax collection mechanisms. He further recommended a comprehensive fiscal management approach to diversify funding sources, including through public-private partnerships (PPP), innovative financing structures, and targeted intervention funds. “To rein in inflation,” he said, “the federal government must reduce its reliance on Central Bank financing. Additionally, the CBN should adopt a single, market-reflective exchange rate, and there must be alignment between fiscal and monetary policies to stabilize the economy.” Yusuf also called on the government to boost domestic trade and promote value addition by lifting forex and trade restrictions. He urged the CBN to establish a clear monetary policy framework that expands access to finance and mitigates risks stemming from the monetisation of Ways and Means advances. On her part, Mrs. Sanni cautioned that inflation may continue to rise in the short to medium term due to factors such as worsening fuel shortages, the lingering effects of flooding on agricultural output, and persistent foreign exchange constraints. She argued that cutting government subsidies and other forms of public support could reduce excess liquidity and inflationary pressure. Moreover, by increasing taxes, the government can moderate aggregate demand and further support inflation control efforts. Sanni also highlighted the importance of infrastructure development, noting that improved infrastructure could enhance productivity and boost economic growth while reducing inflation. She stressed the need for greater transparency in resource allocation and public financial management to improve economic efficiency. Furthermore, she urged the government to tackle corruption, which would not only enhance economic efficiency but also attract foreign investment. Sanni concluded by advocating for export diversification, especially in agriculture and non-oil sectors, as a means to lessen Nigeria’s reliance on oil and buffer the economy against global oil price volatility. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

The National Assembly is poised to pass the long-anticipated harmonised tax reform bills, with a final decision expected by Tuesday, following the resolution of all previously disputed provisions. This legislative breakthrough represents a major advancement in the Federal Government’s drive to modernise Nigeria’s tax regime and align it with global standards. Hon. James Faleke, Chairman of the House Committee on Finance, announced the development on Sunday via his official X (formerly Twitter) handle. He confirmed that the joint Conference Committee—comprising members from both the Senate and the House of Representatives—had completed its review after thorough deliberations. “The Conference Committee on the Tax Reform Bills has successfully concluded its assignment,” Faleke stated. “Every clause of the four bills was carefully examined, and all grey areas were addressed and resolved.” Faleke, who led the House delegation during the harmonisation process, praised the dedication of committee members, noting that discussions often extended late into the night. The intensive review sessions reportedly ran through Thursday night, continued all day Friday, and concluded in the early hours of Saturday. With the harmonisation process complete, the tax bills are now ready for final presentation before both chambers of the National Assembly and subsequent transmission to President Bola Ahmed Tinubu for assent. Faleke also expressed gratitude to the Senate delegation, particularly commending Senator Sani Musa, Chairman of the Senate Committee on Finance, for his leadership. “I want to especially appreciate Senator Sani Musa and the Senate Conference Committee for their commitment. I also sincerely thank my colleagues on the House Committee, whom I was privileged to lead, for their dedication to the Nigerian people,” he said. The tax reform initiative, driven by the Tinubu administration, seeks to overhaul Nigeria’s outdated tax system. The reforms aim to enhance transparency, expand the tax base, increase government revenue, and support key national development goals. Senate President Godswill Akpabio previously praised lawmakers for their efforts in advancing tax reforms that will bring Nigeria closer to international best practices. “These executive bills are designed to transform and modernise Nigeria’s tax structure,” Akpabio said during a plenary session where a majority voice vote favored the bills. Senator Sani Musa, who led the ad hoc committee on the tax reform initiative, emphasized that the reforms are structured to improve revenue generation and fund essential national priorities. These include defence infrastructure, cybersecurity, educational funding through TETFund, and welfare for military personnel engaged in peacekeeping operations. The reform package also proposes the establishment of a tax ombudsman to resolve disputes and promote fairness in tax administration, along with a dedicated tax tribunal to streamline the resolution of tax-related grievances. Senator Musa noted that the reforms span various tax categories, including Value Added Tax (VAT), development levies, and inheritance tax—some of which were previously excluded but reintroduced during harmonisation. He expressed confidence in the positive impact of the reforms: “I am confident that Nigerians will see meaningful benefits from these changes. We also commend President Tinubu for ensuring a fair and open legislative process.” Once passed and signed into law, the harmonised tax bills are expected to lay the groundwork for a more equitable, transparent, and development-oriented tax system in Nigeria. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.