By Ubong Ukpong, Abuja

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele yesterday said the proposed tax reform bills before the National Assembly were not aimed at undermining any region of the country.

He made the assertion at the House of Representatives during an interactive session on the proposed tax reform bills.

It would be recalled that President Bola Tinubu in Sept.

This had followed the recommendations of the Presidential Committee on Fiscal and Tax Reforms headed by Taiwo Oyedele for the review of existing tax laws.

At the Monday hearing, Oyedele argued that the proposal would only ensure efficiency and give more revenue to states where goods and services are consumed.

Oyedele explained that currently, under Section 40 of the VAT Act, VAT revenue is allocated 15 percent  to the Federal Government, 50 percent to the states and FCT, and 35 percent to Local Governments.

“There is no negative thinking about any region or anything,” he said.

Speaker of the House of Representatives, Abbas Tajudeen said the tax reforms bills presented by President Bola Tinubu to the National Assembly will be diligently scrutinised in the best interest of Nigerians.

Abbas said the House was yet to take a definitive position on them.

He said the House owes Nigerians a duty to ensure that the outcome of the bills is in the national interest.

The Speaker said the four tax reform bills represent critical proposals from the executive to expand Nigeria’s tax base, improve compliance, and establish sustainable revenue streams for the nation’s development.

He explained that the purpose of the interactive session is to provide members with a comprehensive understanding of the proposed bills and deepen their appreciation of their provisions, commence constructive dialogue on contentious or controversial areas, and build the consensus.

He said the interaction will help identify areas that need amendment, clarification, or improvement as well as consider the compatibility of these bills with the 1999 Constitution (as amended) and other extant laws.

The Speaker said tax reforms form part of the provisions of the House Legislative Agenda because of their central role in achieving sustainable economic growth and development.

He stressed that in every modern state, taxes are the bedrock of public revenue, providing the resources required to deliver education, healthcare, infrastructure, and security.

Abbas lamented that despite being Africa’s largest economy, Nigeria still struggles with a tax-to-GDP ratio of just 6 percent—far below the global average and the World Bank’s minimum benchmark of 15 percent for sustainable development.

This is a challenge, he said, that must be addressed if the country is to reduce its reliance on debt financing, ensure fiscal stability, and secure our future as a nation.

He explained that the proposed tax reform bills aim to diversify our revenue base, promote equity, and foster an enabling environment for investment and innovation.

He said as representatives of the people, they must approach these reforms thoughtfully, understanding their potential implications for every segment of society.

He said taxes should be fair, transparent, and justifiable, balancing the need for public revenue with the burdens they impose on individuals and businesses.

He said that pre-legislative scrutiny is a well-established practice in many parliaments worldwide as it allows lawmakers to thoroughly review proposed legislation, address ambiguities, and ensure alignment with constitutional provisions before formal consideration.

He said the controversies surrounding these bills in the media, civil society, and among governance stakeholders are re a reflection of their importance.

Such debates, he said, are healthy and necessary in a democracy.

He commended the Presidential Committee on Tax Reforms and Federal Inland Revenue for their work in presenting these proposals and asked members to approach this session with an open but critical mind.

Deputy Speaker of the House, Benjamin Kalu said the gathering was a testament to the shared commitment of the House to crafting a tax system that not only generates revenue, but also engenders equity, economic growth, and sustainable development for our nation.

According to him, tax policy is more than a fiscal tool as it is a catalyst for progress, a vehicle for opportunity, and a foundation for inclusive prosperity and must therefore be rooted in the collective aspiration to create a tax regime that works for all Nigerians, regardless of their economic standing.

He said streamlining taxes should aim at incentivizing key sectors where taxation drives innovation, empowers businesses, and uplifts the most vulnerable.

He said the parliament expects more insight into how the tax reforms incentivize the Digital Economy, support small businesses and low-income households, and more importantly, how the Zero-Rated Value Added Tax works.

He said, “It is crucial for these provisions to be articulated clearly, highlighting how they align with the overarching goal of engendering equity, driving economic growth, and ensuring that no section of society is left behind.

“It is very clear to Nigerians that there will be a need to harmonise taxes, eliminate nuisance levies, and streamline incentives that will engender a more equitable and transparent tax system.

“This session is a reflection of the strength of our democracy—bringing together policymakers, stakeholders, and citizens to deliberate on these tax reforms. These tax reforms represent a shift towards a sustainable fiscal framework, including where effective taxation is a tool for creating opportunities, reducing inequalities, and enabling every citizen to thrive.

“As these bills proceed through the legislative process, there will be opportunities for Nigerians to air their views and actively participate in shaping the final outcomes. Advocacy will also play a pivotal role in ensuring that citizens understand the objectives and benefits of these reforms, as well as the challenges they aim to resolve.”

Chairman of the Federal Inland Revenue Service (FIRS), Zack Adedeji said the agency was awaiting the outcome of the bills.

He said the responsibility of the FIRS was to implement policies and laws passed by the National Assembly.Giving an overview of the four tax reforms bills, the chairman of the presidential committee, Mr. Oyedele, said there was nothing to fear in the proposals as they are in the best interest of Nigeria, especially states and local governments.