Nigeria: Vital Tax Reforms Needed for Enhanced Revenue Generation, Urges Muhammad Nami.

In pursuit of optimized tax revenue collection across Nigeria’s federal, state, and local government tax bodies, the nation must embark on essential and challenging reforms to secure long-term benefits.

This call was echoed by Mr. Muhammad Nami, Chairman of the Joint Tax Board (JTB) and Executive Chairman of the Federal Inland Revenue Service (FIRS), during the 153rd Board Meeting held in Abuja. The event centered on the theme “Harmonization and Codification of Taxes at the National and Sub-national Levels: Key to Achieving a Tax-Friendly Environment in Nigeria.”

In his address to the Board, Mr. Nami underscored that progress in taxation necessitates continuous exploration and adoption of innovative strategies that will optimize tax revenue for all tiers of government.

“As our nation’s new administrations grapple with multifaceted socio-economic challenges, it becomes pivotal for all state mechanisms to shed complacency and work towards a national rejuvenation.

“Our roles as stewards of the nation’s tax administration processes offer us a unique chance to make tough but crucial decisions that will reap long-term benefits and contribute substantially to our collective prosperity.

“In recent years, particularly since the onset of our current democratic era, the significance of taxation has been continually emphasized. The pivotal role of tax revenue in funding government and governance is undeniable.

“However, as we make headway in our distinctive taxation model, it is fitting that we keep exploring and embracing measures and inventive initiatives that will optimize tax revenue for all levels of government in a more efficient, inclusive, and sustainable manner.

“Only by achieving this can our efforts as tax administrators catalyze the necessary economic activity within our economy’s productive sectors, ultimately unlocking our vast economic potential,” Mr. Nami emphasized.

Mr. Nami assured the Executive Chairmen of State Revenue Authorities in attendance that the nation’s current administration is focused on eradicating multiple taxation as a cornerstone of its overarching economic regeneration goals.

Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy & Tax Reforms Committee, during his presentation on the meeting’s theme, stressed that multiple taxation was eroding tax morale in Nigeria, dissuading investments, fostering corruption, and hindering business operations.

He further proposed that the solution to Nigeria’s revenue challenges does not lie in introducing more taxes, but rather in concentrating on a select few high-yielding taxes. By doing so, tax authorities could achieve significantly higher collections.

Mr. Taiwo also advocated for a consolidated approach to revenue collection by integrating tax collection functions under a single revenue agency. He urged the government to adequately fund tax agencies and to employ technology for more efficient tax administration. Revisiting Nigeria’s constitution, tax laws, and the concept of fiscal federalism were also encouraged for effective revenue generation.