Nigeria’s New Tax Regime Hits the Books, Now Comes the Transparency Test
Nigeria has officially entered a new tax era. President Bola Tinubu has signed four omnibus laws designed to tidy up the nation’s famously tangled revenue system, a move that The Nation Newspaper calls a “new dawn” for revenue generation (story).
The Details: The fresh statutes,the National Tax Act, National Tax Administration Act, Nigeria Revenue Service Act, and Joint Revenue Board Act, promise to consolidate rules, unify tax authorities, and expand federal-state coordination. They’re also the first fruits of the year-old Presidential Fiscal Policy & Tax Reform Committee, whose secretariat is steered by Rafat Gambo, an alumnus of the Institute of Development Studies’ tax course. “The ICTD course was instrumental in preparing me for this moment,” Gambo told the Institute of Development Studies (IDS).
But big statutes alone won’t goose revenue. Experts warn that implementation hinges on openness. As columnist Gbenga Oyebode Falana argues, without the Global Initiative for Fiscal Transparency (GIFT) framework, the reforms could “falter in implementation,” The Nation notes.
Why It Matters / What They’re Saying: Nigeria’s tax-to-GDP ratio sits at a meager 10.8%, far below the Sub-Saharan African average. Supporters say streamlining rules should lift compliance, curb illicit financial flows, and unlock new money for infrastructure. Skeptics counter that without clear spending disclosures, citizens may see the overhaul as just another levy grab. “Beautiful laws alone do not translate into better governance,” The Nation reminds us.
Around the Tax World
• FIRS turns up the heat on cross-border tax crime. Chairman Zacch Adedeji told the 42nd Cambridge Symposium that offshore evasion “undermines efforts of countries to raise revenue for development” (The Whistler).
• DMO to states: borrow smart, tax smarter. Debt-office chief Patience Oniha urged governors to strengthen tax collection and embrace PPPs at a World Bank workshop in Lagos (Voice of Nigeria).
• Kwara promises ‘fair’ tax reforms. Governor AbdulRahman AbdulRazaq says upcoming measures will protect low-income households while widening the base (FRCN HQ).
By the Numbers
Tax Stat of the Day: 10.8%, Nigeria’s current tax-to-GDP ratio, one of the lowest in Africa (The Nation).