Deputy Speaker decries Nigeria’s tax system

Deputy Speaker of the House of Representatives, Benjamin Kalu, has said that Nigeria’s current tax system is suffering from inefficiency, leading to some of the lowest tax collection rates in the world.
Speaking at a two day retreat of the House on Economic transformation and development on Tuesday in Abuja, Kalu put the nation’s tax collection at about 10.8 percent of GDP.

He said the statistics were obtained from data from the Federal Inland Revenue Service, FIRS, and the National Bureau of Statistics, NBS.

According to him, these inefficiencies hinder the nation’s ability to invest in essential public services and infrastructure, adding that the role of the National Assembly, particularly the House of Representatives, is crucial in enacting reforms that broaden the tax base, simplify the tax code, and enhance compliance mechanisms without placing undue burdens on Nigerians.

He said: “the role of the National Assembly, particularly the House of Representatives, in this process cannot be overstated.

“We are the custodians of the people’s will, entrusted with the responsibility of ensuring that the lofty ideals enshrined in the PIA are translated into tangible benefits for all Nigerians. “This retreat serves as a critical forum for us to collectively strategize on how to fulfill this vital mandate.”

Kalu stressed that the Petroleum Industry Act (2021) represents a significant milestone in Nigeria’s journey to reform its oil and gas sector and has the potential to unlock vast economic opportunities and guide Nigeria towards a more prosperous and sustainable future.