The Fiscal Responsibility Commission (FRC) has said it fully support the proposed Tax Reform Bill currently undergoing a public hearing at the House of Representatives.
Speaking at the session, the Executive Chairman of FRC, Victor Muruako, noted that the objectives of the bill align closely with the provisions of the Fiscal Responsibility Act, 2007, which was enacted to promote prudent financial management, ensure macroeconomic stability, and enhance transparency in fiscal policy.
He said the proposed tax reforms are necessary to strengthen Nigeria’s economic framework and uphold the nation’s fiscal responsibility principles. He highlighted the critical need for diversified revenue sources, reduced dependence on volatile oil markets, and improved fiscal transparency to prevent excessive and unsustainable government spending.
“A simplified and more predictable tax system, combined with targeted incentives, will encourage investment, stimulate economic growth, and create jobs, thereby reinforcing the nation’s fiscal position,” he stated.
He urged the lawmakers to incorporate several key measures into the tax reforms, some of which include, modernization and harmonization of tax operations; streamlining the tax administration system to enhance efficiency and reduce bureaucratic bottlenecks, and support for Small-Scale Businesses by creating tax incentives and frameworks that encourage the growth of Micro, Small, and Medium Enterprises (MSMEs).
The FRC boss also urged the lawmakers to ensure equity and fairness in taxation by ensuring a balanced tax system that does not disproportionately burden any segment of the economy, as well as to review fiscal allocations to ensure fair distribution of resources across federal, state, and local governments.
The FRC reiterated that if these reforms are successfully passed, Nigeria will benefit from a more efficient, equitable, and growth-oriented tax system, fostering a business-friendly environment while increasing government revenue for developmental projects.
The public hearing saw the participation of key lawmakers, including Rt. Hon. Dr. James Faleke, Chairman of the House Committee on Finance, who delivered the welcome address. The Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas, OON, delivered the keynote address, underscoring the importance of a reformed tax system in ensuring Nigeria’s long-term economic stability.
With strong backing from the Fiscal Responsibility Commission and other stakeholders, the proposed tax reforms are expected to be a significant step toward fiscal sustainability, economic diversification, and improved governance in Nigeria.