Senate President Godswill Akpabio has come under criticism from the Nigeria Labour Congress, Trade Union Congress, and the Nigeria Employers Consultative Association over his remarks that only 30 per cent of Nigerians pay tax while expecting more from the government.
Akpabio made the statement on Monday while declaring open a two-day public hearing on the controversial tax reform bills, organised by the Senate in Abuja. He described tax reforms as the future of Nigeria, stressing that the process must be handled correctly.
However, the NLC, TUC, and NECA swiftly reacted, arguing that Nigerians evade taxes due to the government’s lack of accountability.
Meanwhile, Chairman of the Senate Committee on Finance, Senator Sani Musa, disclosed during the hearing that President Bola Tinubu had urged the Senate to provide him with workable tax laws from the bills submitted to the upper chamber on October 3, 2024.
Stakeholders Back Tax Reform Bills
Despite the opposition from labour groups, several stakeholders expressed support for the proposed reforms. These include the Nigerian National Petroleum Company Limited, Revenue Mobilisation and Fiscal Allocation Commission, National Association of Chambers of Commerce, Industry and Agriculture, Arewa Think Tank, and a group of retired permanent secretaries.
Additionally, the Institute of Chartered Accountants of Nigeria, Chartered Institute of Bankers, Market Academy of Nigeria, Ministry of Trade and Investment, and Association of National Accountants of Nigeria endorsed the bills.
The Arewa Think Tank, led by its convener Muhammad Yakubu, refuted claims that the North was against the tax reforms.
The tax reform bills under consideration include:
– The Nigeria Tax Bill 2024
– The Nigeria Tax Administration Bill 2024
– The Nigeria Revenue Service (Establishment) Bill 2024
– The Joint Revenue Board (Establishment) Bill 2024
These bills were passed for a second reading in the Senate on November 28, 2024, and were forwarded to the Committee on Finance for further legislative review ahead of the public hearing.
Akpabio Defends Tax Reforms, Calls for Proper Review
While opening the public hearing, Akpabio emphasised the significance of tax reform bills, stating that they represented Nigeria’s future and must be implemented correctly.
He assured that the Senate would not rush the process but would conduct a clause-by-clause review before passage.
Akpabio criticised the poor tax payment culture in Nigeria, claiming that only about 30 per cent of Nigerians contribute to government revenue but demand quality infrastructure, education, and security.
“I don’t think up to 30 per cent of Nigerians pay taxes but 100 per cent of Nigerians want good roads. As lawmakers, we will ensure that every revenue that comes into the government’s purse is well utilised,” he said.
He argued that taxation was a shared responsibility and that the National Assembly would enhance oversight to ensure judicious use of collected revenue.
According to Akpabio, taxation in Nigeria must be reformed to align with international best practices.
“In some countries, you pay tax for driving your car too fast. In Nigeria, nobody taxes you, even if you are going 140km/hour. It is time to rethink our tax laws,” he said.
He urged stakeholders to thoroughly examine the bills instead of relying on social media narratives.
“We are here not just to debate, but to make informed decisions that will shape Nigeria’s economy. At the House of Representatives, we have been actively engaging various stakeholders, including young minds, to ensure inclusivity in governance.
“I hope these engagements continue until we have fully addressed all concerns, ensuring that our tax laws serve the best interests of the Nigerian people. Enhancing revenue for national development is a responsibility that concerns every Nigerian men, women, and children alike.”
Akpabio reiterated that effective taxation is crucial for economic development, adding that tax laws should be modernised to replace obsolete regulations that no longer align with current realities.
“Some of our existing tax laws date back to colonial times and require urgent modernisation to reflect contemporary economic realities,” he stated.
He further stressed that tax compliance should not be burdensome for citizens.
“We need a system that is fair, transparent, and efficient. There is no reason for unnecessary complexities that only serve to discourage compliance. The goal of these reforms is to harmonise tax administration, reduce collection costs, and improve overall efficiency through digital innovation,” he added.
Akpabio also addressed the imbalance in tax revenue distribution, citing the example of companies that operate in one state but pay taxes in another.
“For example, if a brewery operates in Ogun State but its headquarters is in Lagos, the tax revenue is collected in Lagos, while Ogun, the state that hosts the factory, sees little benefit. This imbalance must be addressed. The areas where goods and services are consumed should also benefit from the revenue generated,” he explained.
He called on stakeholders to avoid forming opinions based on social media discourse, urging them instead to obtain copies of the bills and provide constructive recommendations.
“Don’t base your arguments on social media opinions, read the bills, analyze them, and present well-informed recommendations. Let me be clear: I will not run the Nigerian Senate based on social media debates.
“Social media can be misleading, and policy decisions should be based on facts and thorough analysis. Instead, let us focus on constructive discussions. Look at our tax system, how has it functioned in the past? Where does it need improvement? We all agree that reform is necessary, so bring your ideas to the table.”
Labour Unions Reject Akpabio’s Remarks, Accuse Government of Wastefulness
Reacting to Akpabio’s comments, an official of the Nigeria Labour Congress, who spoke on condition of anonymity, accused the government of being unaccountable and extravagant while expecting citizens to sacrifice more.
“Akpabio, like many politicians, talks before he thinks. With the huge revenue accruing from oil and other natural resources, there has been nothing to show for it, except that government officials live flamboyantly at the expense of Nigerian people,” he said.
He argued that taxation should be focused on wealth rather than poverty.
“A government that is unaccountable does not expect the citizenry to take the issue of contributing their hard-earned resources seriously.
“You cannot tax poverty but wealth. If a government does not contribute or provide the enabling environment for Nigerians to thrive and create wealth, how would they be confident in contributing to the state?
“Citizens can only pursue the civic duty of paying their taxes when they see a connection between their survival and businesses on the positive actions of government, rather than a situation where people like Akpabio feather their nests with purchases of hundreds of millions worth of SUVs and take home humongous allowances while the masses wallow in penury.”
The official further alleged that the current tax proposals would burden low-income workers.
“The truth is that it is only the poor workers who pay their taxes dutifully every month. The rich evade taxes and when you look at what they are proposing as tax bills again, they are planning to tax the poor workers to death.
“Government must govern properly and effectively to propel people to create wealth which can then be taxed. If the people do not feel confident and connected to the government, they will not be motivated to pay tax.”
