Would you like to receive notifications on latest updates of the following headlines?

Tax reform bills sparks controversy among stakeholder

POSTED ON March 11, 2025 •   Business      BY Abiodun Saheed Omodara
Tax

The recently concluded public hearing on the proposed tax reform bills has sparked debates among stakeholders.

These include associations, agencies, experts, and government officials, all discussing the bills’ potential to create a more efficient tax system.

On Oct. 3, 2024, President Bola Tinubu submitted four tax reform bills to the National Assembly. These bills aim to overhaul Nigeria’s tax administration and revenue generation framework.

The proposed bills are the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

During the public hearing, some stakeholders argued that these reforms would align Nigeria’s tax system with global best practices.

They believe the changes would enhance transparency, accountability, and fiscal stability.

Analysts suggest that restructuring Nigeria’s tax framework could eliminate inconsistencies, reinforce macroeconomic resilience, and stimulate economic growth.

However, in spite of these expected benefits, concerns remain over certain provisions that could hinder the smooth implementation of the reforms.

Critics warn that without necessary amendments, the bills could increase Nigerians’ financial burden, discourage investment, and render some government agencies redundant.

One major agency at risk is the Nigeria Customs Service (NCS). Some stakeholders fear the tax reform bills could negatively impact its operations and overall relevance.

As a key revenue-generating agency, the NCS plays a crucial role in trade regulation enforcement. The proposed tax reforms could directly affect its administrative procedures and legal mandate.

Experts stress that integrating customs administration with broader tax policy requires careful assessment. They highlight potential impacts on customs procedures, trade agreements, and border management.

Stakeholders argue that certain provisions in the bills conflict with the NCS Act 2023, which could lead to policy inconsistencies within the agency.

They caution that these conflicts might create enforcement challenges, operational inefficiencies, and accountability issues for the NCS if the reforms proceed unchanged.

The Association of Nigerian Licensed Customs Agents (ANLCA) noted that implementing the NCS Act 2023 only began in 2024, after more than eight years of legislative processes.

Repealing the Act, they argue, could significantly disrupt customs operations and undermine years of effort to stabilise the agency’s activities.

ANLCA’s National President, Emenike Nwokeji, emphasised that the Act was designed to address longstanding policy inconsistencies, particularly in import duty collection and levies.

“In 2023, the long-awaited Nigeria Customs Act was signed into law by President Bola Tinubu, and its implementation only began in 2024.

“This is an act of parliament, yet less than 15 per cent has been implemented. Now, another tax bill is being introduced, centralising all revenue under one authority,” he stated.

He warned that without necessary modifications, the tax reform bills could create significant legal and operational conflicts with the existing customs framework.

Nwokeji urged the Federal Government to prioritise strengthening the NCS while ensuring effective coordination with other revenue agencies.

He stressed that the customs service requires specialised expertise, warning that the proposed reforms could jeopardise its critical functions.

Highlighting the financial implications, he noted that repealing the Customs Act would require significant resources to train new personnel for specialised roles.

He cautioned that it could take years to develop the expertise that customs officers have acquired through extensive experience.

In spite of his concerns, he expressed confidence that Nigeria’s government would act responsibly and preserve the NCS’s technical operations.

Customs and tax expert, Okey Ibeke, reinforced this stance, stating that NCS duties extend beyond revenue collection to highly technical operations requiring expert knowledge.

He argued that the proposed tax reforms could disrupt essential customs functions if passed without appropriate amendments.

Ibeke raised concerns about the designated revenue agencies’ capacity to manage customs operations. He questioned their expertise in assessing imports and detecting misclassifications.

He warned that these agencies might struggle to identify undervalued goods, increasing the risk of inaccurate importer declarations and revenue losses.

“Customs involves classifying cargo, applying tariff regulations, and conducting valuations.

“Without trained personnel, determining duty rates and ensuring compliance will become significantly more challenging,” he explained.

He noted that NCS operations rely on Rules of Origin (RoO) to verify product sources, calculate import values, and detect fraudulent trade practices.

These complex tasks, he said, could be beyond the capacity of general tax administration systems, further jeopardising revenue collection.

Ibeke highlighted the NCS’s recent progress in modernising its operations through the Trade Modernisation Project. He warned that repealing the Act could reverse these gains.

Instead, he advocated for a balanced approach that strengthens Nigeria’s tax system without disrupting critical revenue agencies.

Similarly, the Customs Consultative Committee (CCC) voiced concerns over legislative inconsistencies, operational inefficiencies, and potential economic and security risks.

The committee’s secretary, Dr Eugene Nweke, recommended maintaining the NCS’s autonomy while reforming the Customs Modernisation Project and leveraging public-private partnerships.

Meanwhile, the Comptroller-General of Customs, Adewale Adeniyi, acknowledged that reviewing Nigeria’s tax laws was both timely and necessary.

He stated that existing tax laws no longer adequately address modern fiscal challenges, economic shifts, and technological advancements.

Adeniyi expressed confidence that the reforms would support Nigeria’s economic growth while aligning its tax system with international standards.

However, he stressed on the need for the final legislation to align with the NCS Act to preserve the agency’s core functions and efficiency

 

READ ALSO
South Africa Surpasses Nigeria in Fuel Imports Amid Dangote Refinery Operations
BY Abiodun Saheed Omodara May 29, 2025 0

Nigeria has lost its long-standing title as Africa’s largest importer of refined petroleum pro...

READ ALSO
Economists Warn of Debt Sustainability Risks as Nigeria Eyes $24.14 Billion in Foreign Loans
BY Abiodun Saheed Omodara May 28, 2025 0

Nigeria's public debt is poised for another substantial increase as President Bola Tinubu has sought...

READ ALSO
Nigeria's Solid Minerals Sector Attracts Over $800 Million in Investments Amid Policy Shift
BY Abiodun Saheed Omodara May 25, 2025 0

The Minister of Solid Minerals Development,Dr Dele Alake announced that Nigeria attracted over $800...

READ ALSO
SNEPCo Urges Indigenous Firms to Enhance Skills for Future Opportunities
BY Abiodun Saheed Omodara May 23, 2025 0

The Shell Nigeria Exploration and Production Company Limited (SNEPCo) has urged Nigerian firms to st...

READ ALSO
JUST IN: Dangote refinery slashes petrol prices by N15 nationwide
BY Abiodun Saheed Omodara May 22, 2025 0

LAGOS, Nigeria — The Dangote Petroleum Refinery recently announced a reduction in the pump pri...

READ ALSO
Sanwo-Olu Advocates for Innovation, Accountability in Economic Policies
BY Abiodun Saheed Omodara May 22, 2025 0

LAGOS, Nigeria - Lagos State Governor Babajide Sanwo-Olu has stated that Nigeria must hasten its pro...

READ ALSO
CBN's Rigid Monetary Policies Threaten Nigeria's Industrialization Efforts
BY Abiodun Saheed Omodara May 22, 2025 0

With the Central Bank of Nigeria (CBN) keeping the benchmark interest rate at 27.5 percent, local ma...

READ ALSO
FG to Auction 753 Housing Units Recovered from Ex-CBN Governor Emefiele
BY Abiodun Saheed Omodara May 20, 2025 0

ABUJA, Nigeria - The Federal Government has declared its intention to sell 753 housing units that we...

OUR CHANNELS:

Aid to Trade: US Embraces a New Economic Partnership with Nigeria
BY Abiodun Saheed Omodara June 7, 2025 0

The US is transitioning from providing aid to fostering trade in Nigeria and other countries, as sta...


Students mobilise for Malaria Contest with N1b Geneith health
BY Abiodun Saheed Omodara June 7, 2025 0

In an effort to tackle one of Nigeria’s deadliest diseases, Geneith Pharmaceuticals Ltd has la...


Dangote Advocate end to health tourism, Emphasize local drug- production
BY Abiodun Saheed Omodara June 7, 2025 0

ABUJA, Nigeria - President and chief executive officer of Dangote groups, Aliko Dangote, has called...


72% of Pupils in Northern States Cannot Read - UNICEF Chief
BY Abiodun Saheed Omodara June 8, 2025 0

The United Nations Children’s Fund (UNICEF) has expressed concerns over the state of youngster...


Customs Seizes N1.28bn, Arrests Seven Smugglers in Lagos, Ogun, Oyo
BY Abiodun Saheed Omodara June 6, 2025 0

    The Federal Operations Unit (FOU), Zone A of the Nigeria C...


EFCC's Crackdown on Illegal Mining, Two Chinese Nationals Charged in Lagos Court
BY Abiodun Saheed Omodara June 7, 2025 0

LAGOS, Nigeria - The Economic and Financial Crimes Commission (EFCC) has charged two Chinese nationa...


Trump Ban Nationals from 12 Countries amid Security Concerns
BY Abiodun Saheed Omodara June 6, 2025 0

President Donald Trump has enacted a new proclamation prohibiting citizens from 12 nations from ente...


Enugu Proposes Bill to Curb Criminal Activities Linked to Traditional Practitioners
BY Abiodun Saheed Omodara June 6, 2025 0

ENUGU, Nigeria - Enugu State Governor Peter Mbah has proposed an Executive Bill to the Enugu State H...


Bill Gates Advocates for Improved Health Care in Nigeria Amid Budget Constraints
BY Abiodun Saheed Omodara June 7, 2025 0

US billionaire Bill Gates, who chairs the Gates Foundation, expressed that Nigeria’s health bu...


Controller General Issues Urgent Security Directive for Correctional Facilities
BY Abiodun Saheed Omodara June 8, 2025 0

The Controller General of Corrections, Sylvester Nwakuche, has issued a strict order to all Zonal Co...


More Articles

Load more...

Menu