Tax Reform Is Policy, Not Politics, Expert Insists Amid Nigeria’s Legislative Dispute

Tax Reform Is Policy, Not Politics, Expert Insists Amid Nigeria’s Legislative Dispute

  • Public policy analyst Aderonke defends Nigeria's tax reforms as essential for economic stability rather than political strategy
  • Allegations of legislative irregularities are addressed, affirming the reforms reflect approved versions from the National Assembly
  • Aderonke urges focus on implementation, stressing reforms aim to enhance revenue generation and reduce reliance on borrowing

Public policy analyst Arabinrin Aderonke has pushed back against growing criticism surrounding Nigeria’s newly enacted tax reforms, insisting that the changes represent a necessary economic policy choice rather than a political agenda.

Aderonke said that the reforms should be viewed within the broader context of President Bola Ahmed Tinubu’s economic strategy, aimed at addressing deep-seated structural weaknesses and placing the economy on a more sustainable footing.

Tax reforms, the politics of tax reforms, Nigeria's VAT system
President Bola Tinubu's government pursues aggressive tax policy Credit: State House
Source: Twitter

According to her, meaningful reforms are rarely convenient, but they remain essential for long-term national stability.

“Every administration is ultimately judged by its willingness to confront difficult structural problems,” she said, positioning tax reform as a defining test of governance rather than partisan manoeuvring.

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Responding to claims of legislative irregularities

Aderonke’s article directly addresses allegations that the tax laws were rushed through the National Assembly or altered before receiving presidential assent.

She describes such claims as misleading, noting that legislative leaders have provided multiple clarifications to counter the narrative of falsification.

Senate President Godswill Akpabio, she points out, has publicly stated that the versions signed into law accurately reflect what lawmakers passed.

In addition, the House of Representatives has released Certified True Copies of the legislation and activated internal review procedures to examine any outstanding concerns.

“These actions demonstrate a functioning democracy, not a failing one,” Aderonke told Legit.ng.

She further stresses that Nigeria’s constitutional system already provides formal mechanisms for resolving legislative disputes, many of which are currently being applied.

Warning against public alarmism

While acknowledging the right to scrutiny, Aderonke cautions against what she describes as sustained alarmism during an active review process.

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She warns that persistent suspicion, if left unchecked, could erode public trust in democratic institutions at a time when policy clarity and national cohesion are needed.

“To continue to project suspicion while these processes are ongoing risks weakening public confidence,” she notes, adding that transparency must be matched with patience.

Why the tax reforms matter

Beyond the controversy, Aderonke shifts attention to the substance of the reforms themselves.

She argues that Nigeria has long struggled with weak revenue mobilisation, an overly narrow tax base and inefficient administration, leading to chronic dependence on borrowing.

The new tax framework, she says, seeks to improve coordination among revenue agencies, close leakages, and strengthen compliance.

According to Aderonke, these measures are critical if the government is to sustainably fund infrastructure, social services and economic diversification without piling on debt.

Focus turns to implementation

While conceding that reforms often bring short-term discomfort, Aderonke notes that history shows countries delaying hard decisions eventually face greater economic pain.

She references international assessments that consistently identify fiscal discipline and domestic revenue generation as key drivers of growth and macroeconomic stability.

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Tax reforms, the politics of tax reforms, Nigeria's VAT system
Zaach Adedeji's NRS pursues new tax reforms, aims to tackle evasion. Credit: NRS
Source: UGC

With the laws now in force, she concludes that Nigeria’s national interest is best served by shifting attention from controversy to implementation, urging policymakers and citizens alike to focus on clarity, compliance and transparency to ensure the reforms deliver broad-based benefits.

FG issues urgent warning to Nigerians as filing deadlines nears

Legit.ng earlier reported that as critical tax deadlines draw near, the federal government has issued a stern warning to Nigerians, stressing that paying taxes alone does not fulfil legal obligations.

Employers and individuals must also file annual tax returns or face possible penalties.

The warning came from Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, who expressed concern over Nigeria’s persistently low tax compliance rate.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng