KEY POINTS
- Economic expert Mr. Olugbuyiro Akinola stated on Tuesday that President Bola Tinubu’s tax reforms are significantly strengthening government revenue.
- Tax revenue now accounts for approximately 68% of public revenue, contributing a larger share of income than oil and gas for the first time in Nigeria’s history.
- The reforms are reportedly creating the resources needed to fund critical infrastructure and welfare programmes, including the Lagos–Calabar Coastal Highway.
- Increased compliance follows several landmark rulings by the Tax Appeal Tribunal, which have recovered huge sums in unpaid taxes from corporate organizations.
MAIN STORY
Economic expert Mr. Olugbuyiro Akinola told newsmen on Tuesday in Akure that President Bola Tinubu’s tax reforms are already strengthening government revenue and creating the resources needed to fund critical infrastructure. Akinola, who serves as the Commissioner of the Tax Appeal Tribunal in Ibadan, explained that tax revenue was contributing a larger share of government income than oil and gas for the first time in Nigeria’s history.
He noted that tax revenue currently accounts for about 68 per cent of public revenue under the current administration.
Akinola stated that the increased revenue would enable the Federal Government to fund major infrastructure projects across the country as part of its Renewed Hope agenda. He listed these projects to include ongoing road construction such as the Lagos–Calabar Coastal Highway, the Badagry–Sokoto corridor, and the Enugu–Onitsha–Owerri–Port Harcourt axis.
According to him, these projects are being made possible because more taxpayers and corporate organisations are complying with tax laws following several landmark rulings of the Tax Appeal Tribunal.
The commissioner noted that there had been repeated decisions by the tribunal across the country in which huge sums were awarded against companies that previously failed to pay taxes such as stamp duty, value-added tax, and withholding tax.
He explained that the reforms specifically target multinational digital firms with a strong presence in Nigeria and wealthy individuals, while reducing the tax burden on the poor to the barest minimum. He stated that the law now captures companies with a digital presence, ensuring that transactions conducted within the country are effectively taxed.
Akinola further explained that sustained reforms and public cooperation are essential to achieving long-term economic stability. He called for nationwide tax education, including its incorporation into the school curriculum, to improve the understanding of tax obligations and the benefits of compliance. According to him, these ongoing reforms will strengthen Nigeria’s fiscal system, enhance infrastructure development, and improve national security.
WHAT’S BEING SAID
- “Tax revenue was contributing a larger share of government income than oil and gas for the first time in Nigeria’s history,” said Mr. Olugbuyiro Akinola.
- “The reforms taxed multinational digital firms with a strong presence in Nigeria while reducing the burden on the poor,” Akinola explained.
- “Reforms represented a comprehensive overhaul of the tax system, reducing the tax burden on the poor to the barest minimum,” noted the Tax Appeal Tribunal Commissioner.
WHAT’S NEXT
- The Federal Government is expected to continue allocating these tax-generated funds to accelerate the completion of the mentioned coastal and regional highway corridors.
- The Tax Appeal Tribunal is likely to preside over further cases involving corporate tax liabilities to maintain the current momentum of revenue collection.
- Educational stakeholders may be engaged to discuss the feasibility of incorporating tax education into the national curriculum as proposed by Akinola.
BOTTOM LINE
The Bottom Line is that Nigeria’s fiscal reliance is shifting away from oil toward domestic taxation. By leveraging the Tax Appeal Tribunal to enforce compliance among large corporations and digital firms, the government has reached a historic threshold where tax revenue now provides the majority of the funding for national infrastructure projects.
