Speaker Abbas assures Nigerians of inclusive Tax Reform process

Speaker of the House of Representatives, Abbas Tajudeen, has assured Nigerians that all views expressed on the proposed tax reform bills will be carefully considered before their passage into law.

Speaking at a youth dialogue on the tax bills, represented by Rep. Leke Abejide, Chairman of the House Committee on Customs and Excise, the Speaker emphasized the importance of inclusivity in shaping the reforms.

He commended the tax reform bills as essential tools for economic growth and national progress. The bills aim to diversify Nigeria’s revenue base, improve compliance, and reduce reliance on external borrowing.

Tajudeen reiterated the parliament’s commitment to ensuring that the reforms are fair, transparent, and aligned with the interests of all Nigerians.

“These bills will prepare the country to be economically viable, technologically independent of other nations,” he said.

The Chairman, House Committee on Youths in Parliament, Ayodeji Alao-Akala said the review of the nation’s tax laws has become necessary to address contemporary challenges in fiscal policies.

Alao-Akala said that young people, particularly those engaged in micro, small, and medium enterprises (MSMEs) will. Be one of the biggest beneficiaries of the reform, saying

. “If we get it right with the youth, we get it right with the country”.

While asking young Nigerians to contribute meaningful ideas to the bill, he said most low-income earners in Nigeria are youths, struggling to start businesses, rent homes, or make financial progress.

He said the proposed tax reforms aim to ease this burden by ensuring fairer policies that support entrepreneurship and economic independence.

The Lawmaker insisted that delaying reform any further would be detrimental, emphasizing that “tomorrow never comes; the time to act is now.”

Some of the youth groups expressed concern over the planned gradual increase in Value Added Tax, saying doing so will increase the burden the nation’s youths who are already grappling with unemployment.

The groups will spoke at National Youth Dialogue on the Tax Reform Bills organised by the House Committee on Youths in Parliament, the youths pledged tsupport for the tax reform which they said has the capacity to change the nation’s economy.

Representative of the Alumni Association of the Legislative Mentorship Initiative, Abubakar Tijani commended the proposals, saying that if implemented, the reforms are capable of changing the nation’s economic narrative.

He said the proposed legislation is not merely a collection of fiscal policies; it is a blueprint that will shape the economic trajectory of our nation and more importantly, directly impact the lives of our youth, who largely represent the present and future of Nigeria,.

Tijani called for a balanced exchange of views, adding that as good as the bills were, there were areas of uncertainty that needed some clarity for the benefit of Nigerians.

“As we engage in this critical discourse, we must approach the subject with a balanced perspective, acknowledging the bill’s potential benefits while also addressing its areas of concern. Our collective goal must be to ensure that this legislation fosters inclusive growth, empowers our citizens, and lays a solid foundation for sustainable development,” Tijani added.

According to him, the positive aspect of the tax reforms include company income tax reduction, support for small businesses, personal income tax relief and VAT exemptions on essential goods and services, among others.

“One of the most notable features of the bill is the proposed reduction in the Company Income Tax rate. The current rate of 30 per cent is set to decrease to 27.5 per cent in 2025, with a further reduction to 25 per cent by 2026.

“This measure is designed to stimulate business growth, enhance corporate profitability, and attract both domestic and foreign investments. By lowering the tax burden on companies, the government aims to encourage reinvestment, innovation, and job creation, all of which are critical for economic expansion.

“For the youth, this could translate into increased employment opportunities and a more vibrant private sector. The bill also introduces a significant exemption for small businesses with an annual turnover of ₦50m or less.

“These enterprises will no longer be required to pay income tax, a move that alleviates financial pressures on small-scale entrepreneurs and fosters a culture of entrepreneurship.

“Another laudable aspect of the bill is the exemption of workers earning ₦800,000 annually or less from personal income tax. This measure provides much-needed relief to low-income earners, many of whom are young professionals just starting their careers.

“By increasing disposable income, the government is not only improving the standard of living for these individuals but also stimulating consumer spending, which is a key driver of economic activity.

Speaking on the grey areas of the bills requiring legislative intervention given, he said

“The bill proposes a gradual increase in the VAT rate, starting from the current 7.5 per cent to 10 per cent in 2025, 12.5 per cent in 2026, and 15 per cent by 2030. While this measure is intended to boost government revenue, it could have adverse effects on consumers.

“An increase in VAT often leads to higher prices for goods and services, which could erode purchasing power and exacerbate inflationary pressures.

“For the youth, who are already grappling with high unemployment rates, this could further strain their financial circumstances. It is essential to consider the broader implications of this policy on the cost of living and economic stability.

“Another concerning provision is the plan to cease funding for critical agencies such as the Tertiary Education Trust Fund, National Agency for Science and Engineering Infrastructure, National Information Technology Development Agency by 2030.

“These agencies play a pivotal role in advancing education, technology, and innovation, sectors that are indispensable for youth development and national progress.

“TETFUND, for instance, has been instrumental in improving infrastructure and quality in tertiary institutions, while NASENI and NITDA have driven technological innovation and digital transformation. Cutting funding to these agencies could hinder their ability to deliver on their mandates, thereby hindering progress in areas that are crucial for the youth and the nation’s future.

“The bill also proposes imposing taxes on businesses operating in Free Trade Zones. These zones have historically enjoyed tax exemptions as an incentive to attract investments and stimulate economic activity. By introducing taxes, the government risks deterring investors and undermining the competitiveness of these zones.

“This could lead to reduced economic activity, job losses, and a decline in foreign direct investment. For the youth, who often benefit from employment opportunities in these zones, this could have far-reaching implications,” he said.

In its contribution, the Centre for African Policy Research Advisory, called for the involvement of Nigerians in the implementation of the bills when they are eventually passed into law.

Speaking on behalf of the Centre, Segun Adebayo emphasised the need for the protection of the nation’s tax sovereignty, saying “Tax sovereignty refers to a nation-state’s right to control its tax policies. It is closely tied to a country’s ability to govern effectively and democratically”he added