Kehinde Fajobi
The Speaker of the House of Representatives, Tajudeen Abbas, has called for urgent measures to address Nigeria’s low tax-to-Gross Domestic Product (GDP) ratio of 6 per cent, emphasising the need to stimulate economic productivity.
Abbas appealed on Monday during an interactive session on Tax Reform Bills at the National Assembly Complex in Abuja.
He noted that despite being Africa’s largest economy, Nigeria lags behind global tax benchmarks.
“Nigeria, despite being Africa’s largest economy, struggles with a tax-to-GDP ratio of just 6 per cent, far below the global average and the World Bank’s minimum benchmark of 15 per cent for sustainable development,” he said.
“This is a challenge we must address if we are to reduce our reliance on debt financing, ensure fiscal stability, and secure our future as a nation.”
The session was organised to give lawmakers a deeper understanding of the proposed tax bills and to encourage dialogue on contentious issues.
Abbas stressed the importance of reforming the tax system to diversify revenue, foster equity, and create an investment-friendly environment.
He said, “The proposed tax reform bills aim to diversify our revenue base, promote equity, and foster an enabling environment for investment and innovation.
“However, as representatives of the people, we must approach these reforms thoughtfully, understanding their potential implications for every segment of society.
“Taxes should be fair, transparent, and justifiable, balancing the need for public revenue with the burdens they impose on individuals and businesses.”
Acknowledging public concerns, Abbas described the controversies as an essential part of the democratic process.
“The controversies surrounding these bills — whether in the media, civil society, or among governance stakeholders — are a reflection of their importance,” he remarked.
“Such debates are healthy and necessary in a democracy, and this session aims to channel those discussions into productive outcomes.
“It is critical that we listen to diverse perspectives, ask probing questions, and seek clarity on any unclear provisions.”
The Speaker clarified that the House of Representatives had not yet taken a definitive stance on the tax bills.
“The House has not yet taken a definitive position on these bills. Our role is to scrutinise them thoroughly, ensuring they align with the best interests of our constituents and the nation at large. We owe this duty to Nigerians,” Abbas concluded.