NESG Criticizes Halt on Legislative Action for Tax Reform Bills

The Nigerian Economic Summit Group (NESG) has expressed concerns over the suspension of legislative action on critical tax reform bills, warning that the delay could hinder efforts to improve the country’s fiscal policy framework. The NESG emphasized the importance of comprehensive tax reforms to boost revenue generation and foster economic growth.

Legislative Inaction Raises Concerns

The suspended bills, designed to streamline Nigeria’s tax system and address inefficiencies, have stalled in the National Assembly due to unspecified reasons. The NESG, a leading policy advocacy group, criticized the lack of urgency, stating that the delay undermines the progress needed to stabilize the nation’s economy.

“The suspension is a step backward for fiscal sustainability,” an NESG representative said. “Nigeria cannot afford to postpone reforms that are crucial for diversifying revenue and reducing dependency on oil.”

Importance of Tax Reform

Nigeria’s tax-to-GDP ratio, one of the lowest globally at around 6%, highlights the urgent need for reform. Experts argue that broadening the tax base, improving compliance, and eliminating multiple taxation are essential to strengthening the economy.

The proposed tax reform bills aim to:

1. Simplify tax laws to encourage voluntary compliance.
2. Address double taxation issues affecting businesses.
3. Increase government revenue to fund infrastructure and social programs.

Economic Implications of Delays

The suspension of legislative action could exacerbate existing fiscal challenges, including:

• Revenue shortfalls impacting budget implementation.
• Reduced investor confidence in Nigeria’s economic policies.
• Stalled efforts to improve Nigeria’s ranking in the World Bank’s Ease of Doing Business Index.

Dr. Tayo Adetunji, a fiscal policy expert, noted, “Tax reform is not just about revenue; it’s about creating a fair and predictable system that encourages economic growth. Delays send the wrong signal to investors and businesses.”

NESG’s Call to Action

The NESG has called on lawmakers to prioritize the bills and resume legislative action promptly. It also urged the Federal Government to ensure robust stakeholder engagement to address concerns that may have contributed to the suspension.

“We need a tax system that works for everyone — businesses, individuals, and the government. Delays only deepen our fiscal woes,” the NESG added.

Path Forward

To reinvigorate the reform process, stakeholders are advocating for:

• Greater transparency in legislative proceedings.
• Collaboration between the National Assembly and the private sector.
• Adoption of international best practices in tax administration.

Conclusion

The NESG’s critique underscores the urgency of advancing Nigeria’s tax reform agenda. With economic stability hanging in the balance, resuming legislative action on these bills is crucial to unlocking the country’s fiscal and economic potential. The call to prioritize these reforms serves as a reminder of the critical role policy plays in shaping Nigeria’s economic future.