NESG Supports Tax Reform Bills 100% – CEO Aduloju
The Nigerian Economic Summit Group (NESG) has expressed full support for the Tax Reform Bills currently before the National Assembly, with its Chief Executive Officer, Dr. Tayo Aduloju, describing the opposition to the bills as rooted in geopolitical considerations rather than economic merits.
Speaking during a media engagement in Abuja on Friday, Aduloju emphasized the importance of the bills in addressing longstanding tax issues, particularly the need to shield the poor from unnecessary taxation.
“We support [the bills] 100% because we have put our weight of analytics behind them,” Aduloju stated. “It is important to recognize that these bills mark the first time in this country’s history that the poor are being explicitly exempted from taxation. Taxing the working poor does not solve any problem.”
He highlighted that the bills would establish a better social security system by identifying and exempting the working poor from taxation, ensuring that those who need support retain their resources without being taxed unnecessarily.
Aduloju also commended the debate generated by the bills, noting that it has ignited a rare conversation in the National Assembly about production and revenue generation among Nigeria’s federating states.
“This process is important,” he said. “For the first time, we are having a real conversation about production. The thought put into these bills requires this debate, and lawmakers must be allowed to do their work.”
He called for an open legislative process, urging lawmakers to reopen hearings, collect memoranda from all geopolitical zones, and allow technical committees to review contributions to ensure inclusivity.
Aduloju acknowledged that opposition to the bills stems from geopolitical concerns, particularly from regions that feel the proposed changes might alter existing revenue-sharing formulas.
“For some political zones, the issue is equity. For others, it’s about perceived losses from a formula that worked for them in the past. It’s geopolitics, and that’s fine, but let the lawmakers do their work,” he said.
Aduloju outlined several benefits of the proposed tax reforms, including:
Expanding the tax base and increasing tax revenue.
Improving the tax information system.
Introducing mechanisms for tax justice, such as independent offices for taxpayers to address grievances.
Reducing the proliferation of nuisance taxes, which currently number around 90.
He also emphasized the need for a system that guarantees value-added tax (VAT) refunds, a rare occurrence under the current framework.
Aduloju urged Nigerians to engage constructively with the legislative process, encouraging both supporters and opponents of the bills to present their arguments to lawmakers. He also called for a broader discussion on fiscal federalism, noting that the current bills represent a step forward but cannot address all the challenges within Nigeria’s fiscal framework.
“At one point in a generation, we have to decide whether to move backward or forward,” he said. “The lawmakers should not be deterred from doing their legislative work. Let the process continue, and let Nigerians engage with it meaningfully.”
The NESG reaffirmed its commitment to supporting reforms that promote equity, transparency, and sustainable economic growth.
