Maryam Aminu
The Fiscal Responsibility Commission (FRC) has strongly endorsed the Tax Reform Bills currently before the National Assembly, lauding their potential to transform Nigeria’s fiscal landscape, enhance public revenue, and stimulate economic growth.
The bills, developed by the Presidential Fiscal Policy and Tax Reforms Committee, are designed to improve fiscal governance and ensure equitable resource distribution across the country.
Speaking at the sidelines of the Fellowship Lecture and Investiture Ceremony of the Capital Market Academics of Nigeria (CMAN), held on December 9, 2024, at the NDIC Academy, Abuja, the Chairman of the FRC, Victor Muruako, Esq., highlighted the Commission’s detailed analysis of the proposed reforms.
According to him, the bills contain no provisions favoring any particular region or section of Nigeria. Instead, they promote equitable resource distribution among Nigeria’s federating states and are designed to benefit all Nigerians, particularly low-income earners and Micro, Small, and Medium Businesses (MSMBs).
Victor Muruako outlined several critical benefits of the reforms.
He said Individuals earning less than N1.7 million annually will pay reduced income tax.
He added that businesses with turnovers below N50 million will be exempt from taxes, benefiting over 90% of small businesses.
Simplified Tax System: The reforms streamline the tax administration process by significantly reducing the number of taxes and levies.
Muruako expressed that states and local governments will receive a larger share of VAT revenue, enhancing their capacity to deliver better public services.
He further explained that businesses will benefit from reduced administrative burdens and simplified compliance processes.
Muruako expressed optimism that the proposed tax relief for low-income earners would boost household savings and investments, driving sustainable economic growth.
He emphasized that the reduced tax burden on MSMBs would create room for organic growth, thereby contributing to an increase in Nigeria’s GDP in the near future.
Addressing recent controversies surrounding the bills, Muruako commended President Bola Tinubu for his democratic approach in allowing space for dialogue.
He urged stakeholders across Nigeria’s geopolitical zones to support the bills, emphasizing their transformative potential to improve the lives of all Nigerians.
“These reforms are a win-win for every Nigerian. They enhance equity, support small businesses, and strengthen the economy. I appeal to all stakeholders to prioritize national interest and rally behind these bills,” said Muruako.
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