Tax Reform Bill: Expert Warns of Potential Threat to Nigeria’s Unity

By Emmanuel Kwada

A proposed tax reform bill currently before the National Assembly has raised concerns among experts, with one warning that it could pose a threat to Nigeria’s unity if not handled with caution. Alhaji Shuaib Idris, a chartered accountant and tax consultant, expressed his reservations about the bill at a roundtable organized by the Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA).

Idris criticized the lack of broad consultations in drafting the bill, describing it as skewed towards the interests of a particular region. He also expressed frustration that despite calls for a review, the bill progressed to the second reading in the National Assembly.

The bill has the potential to exacerbate existing tensions in the country, pitting regions against each other

According to Idris, the bill has the potential to exacerbate existing tensions in the country, pitting regions against each other.

“This is not about North versus South,” Idris emphasized. “The real question is, where is the equity, fairness, and transparency?” He also lamented the increasing tax burden on Nigerians, particularly at a time when citizens are grappling with the removal of fuel subsidies and widespread poverty. Idris noted that 80% of Nigerians are living below the poverty line, and any additional tax increase will ultimately burden consumers.

The real question is, where is the equity, fairness, and transparency?

KADCCIMA President, Ishaya Idi, also weighed in on the issue, noting that many Nigerians were unaware of the bill until it had advanced in the legislative process. “It’s better late than never that discussions are now being held to address the issues,” Idi said.

The proposed tax reform bill is part of President Bola Tinubu’s “Renewed Hope” agenda, which aims to create a more transparent and efficient fiscal framework . The bill proposes significant changes to the tax landscape, including simplified structures, new rates, and digital tools to track compliance. However, critics argue that the bill may increase the tax burden on Nigerians, particularly low-income earners.

As the debate over the tax reform bill continues, it remains to be seen whether the government will address the concerns raised by experts like Idris. One thing is certain, however: the outcome of this debate will have far-reaching implications for Nigeria’s economy and stability.