The Speaker of the House of Representatives, Tajudeen Abbas, has called for immediate efforts to address Nigeria’s low tax-to-Gross Domestic Product (GDP) ratio of just 6%. He emphasized the importance of boosting the economy for greater productivity and fiscal stability.
Abbas made the remarks on Monday during an interactive session on Tax Reform Bills at the National Assembly Complex in Abuja. The session, organized by the House of Representatives, was aimed at providing lawmakers with a deeper understanding of the key provisions in the tax reform bills currently under consideration.
Abbas highlighted Nigeria’s struggle with a tax-to-GDP ratio that falls significantly below the global average, noting that it is well below the World Bank’s minimum benchmark of 15% for sustainable development. He explained that this disparity hinders the country’s economic growth, increasing reliance on debt financing, and undermines fiscal stability.
He stressed that the proposed tax reforms are critical for diversifying Nigeria’s revenue base, promoting fairness, and creating an environment conducive to investment. However, he urged that these reforms be approached thoughtfully to balance public revenue needs with the potential burdens on individuals and businesses.
Acknowledging the controversy the bills have sparked, Abbas emphasized the importance of healthy debates and discussions, stating that the session was meant to turn these discussions into productive outcomes. He confirmed that the House had not yet taken a definitive position on the bills but promised thorough scrutiny to ensure they align with the best interests of the Nigerian people.
This call for tax reform comes at a crucial time as the country looks to reduce debt dependency and build a more sustainable economic future.
