By Tony Obiechina Abuja
The Lagos Chamber of Commerce and Industry (LCCI) has expressed support for the federal government tax reforms bills stressing that the move would improve Nigeria’s fiscal stability.
According to the Chamber the ongoing initiatives could raise the nation’s tax-to-GDP ratio to 11 per cent by 2025.
The President and Chairman of the Council, LCCI, Mr. Gabriel Idahosa, made it’s position known during the 2025 Economic Review and Outlook Conference held on Thursday.
The Tax Reform Bill, which includes the Nigeria Tax Bill (NTB), Nigeria Tax Administration Bill (NTAB), Nigeria Revenue Service Establishment Bill (NRSEB), and the Joint Revenue Board Establishment Bill (JRBEB), aims to address inefficiencies, broaden the tax base, increase government revenue, and stimulate economic growth.
The LCCI support for the legislation is coming amid rising opposition on the bill from various stakeholders including the northern governors, the Nigeria Labour Congress, and Academic Staff Union of Universities among others.
ASUU had said the bill, when passed into law would steadily reduce funding available to the Tertiary Education Trust Fund (TETFund) from this year until the Fund is left completely without funding by the year 2030.
Also, the NLC had on Wednesday called for the withdrawal of the tax reform bill until a public hearing is held or there is greater inclusivity in the tax committee before the bill is passed.
The Head of Information at the NLC, Benson Upah, noted on Wednesday that past experiences with agreements and dialogues with the federal government have taught the union to be cautious.
He argued that the tax reform bill is targeted at extorting Nigerian workers across all sectors of the economy.
But speaking on the tax reform bills, Idahosa noted that Nigeria’s current tax-to-GDP ratio of 10.6 per cent is significantly lower than the African average of 15.6 per cent and among the lowest globally.
He emphasized the importance of the Tax Reform Bill now before the National Assembly, which seeks to simplify tax administration, broaden the tax base, and promote equity through progressive measures.
“If implemented, the reforms could increase non-oil revenue by 25 per cent by 2026, generating an additional N500bn in income tax annually,” Idahosa stated, adding that “This will reduce reliance on debt financing and enhance fiscal sustainability.”
The conference also reviewed Nigeria’s economic performance in 2024, a year marked by pivotal reforms in fiscal policy, energy, and trade.
The non-oil sector played a key role in economic growth, expanding by 3.37 per cent in Q3 2024, driven by a 5.19 per cent increase in the services sector. Overall GDP growth reached 3.46 per cent, the highest since Q4 2023.
On the 2025 federal budget, Idahosa commended the government’s allocation of N8tn for infrastructure projects and N5tn for education and healthcare.
However, he expressed concerns about the projected budget deficit of N11.3trn, cautioning against over-reliance on borrowing.
The conference brought together leading economists and stakeholders to discuss strategies for advancing Nigeria’s economic agenda in the face of persistent challenges and emerging opportunities.
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