…bemoans Nigeria’s low 6% tax-to-GDP ratio

The House of Representatives Speaker Tajudeen Abbas insisted yesterday that “the House has not yet taken a definitive position on” President Bola Tinubu’s proposed tax reform bills.

According to him, they will consider the bills “thoughtfully” and in the best interest of Nigerians. He expressed concerns over Nigeria’s low tax-to GDP ratio, which stands at just 6 per cent despite being Africa’s largest economy, stressing the need to stimulate the economy for maximum productivity.

Abbas said these at the interactive session on tax reform bills organised by the House. The Speaker said: “The proposed tax reform bills aim to diversify our revenue base, promote equity, and foster an enabling environment for investment and innovation.

“However, as representatives of the people, we must approach these reforms thoughtfully, understanding their potential implications for every segment of society. “Taxes should be fair, transparent, and justifiable, balancing the need for public revenue with the burdens they impose on individuals and businesses.”

He added: “Let me be clear: the House has not yet taken a definitive position on these bills. “Our role is to scrutinise them thoroughly, ensuring they align with the best interests of our constituents and the nation at large. We owe this duty to Nigerians.

“The controversies surrounding these bills—whether in the media, civil society, or among governance stakeholders—are a reflection of their importance. “Such debates are healthy and necessary in a democracy, and this session aims to channel those discussions into productive outcomes.

“It is critical that we listen to diverse perspectives, ask probing questions, and seek clarity on any unclear provisions.” According to him, the bills represent critical proposals from the executive to expand Nigeria’s tax base, improve compliance, and establish sustainable revenue streams for our nation’s development.

He called for efforts to address the low tax to-GDP ratio of 6 per cent. Abbas said: “Despite being Africa’s largest economy, Nigeria struggles with a tax-to-GDP ratio of just 6 per cent—far below the global average and the World Bank’s minimum benchmark of 15 per cent for sustainable development.

“This is a challenge we must address if we are to reduce our reliance on debt financing, ensure fiscal stability, and secure our future as a nation.”