Tinubu’s Revenue Reform Initiative
President Bola Tinubu is spearheading a major reform in the Federal Government’s revenue collection system. The proposed changes would prohibit agencies like the Nigerian Customs Service and Nigerian Ports Authority from directly collecting government revenue. Instead, a newly established Nigeria Revenue Service will centralize all revenue collection activities.
This move is part of broader tax reforms aimed at improving revenue generation and boosting Nigeria’s tax-to-GDP ratio, which is currently one of the lowest in Africa. The reforms also seek to enhance transparency and efficiency in revenue management.
No Agency Merger Planned
While some feared a possible merger of agencies, sources from the Presidency clarified that only the revenue collection functions will be transferred to the Nigeria Revenue Service, leaving agencies like NIMASA and Customs to focus on their core mandates, such as trade facilitation.
The proposed Nigeria Revenue Service (Establishment) Bill, along with three other tax reform bills, has been submitted to the National Assembly. If passed, these bills will consolidate tax laws, streamline revenue administration, and improve taxpayer compliance. Tinubu emphasized that these reforms will stimulate economic growth and enhance fiscal stability.
Support for Prudent Fiscal Management
The House of Representatives has received the bills, with Speaker Tajudeen Abbas expressing optimism that they align with the administration’s goals of boosting economic growth and ensuring sustainable fiscal management. The House also plans to debate a new Fiscal Responsibility Bill aimed at promoting long-term macroeconomic stability and greater transparency in government spending.
News Editor