The National Economic Council(NEC) has resolved to formally interface with the Presidential Fiscal Policy and Tax Reforms Committee to address issues surrounding the newly enacted tax laws.
This is according to a statement issued on Friday by Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications (Office of the Vice President), following NEC’s first virtual meeting of the year held on Thursday.
The decision comes amid growing debates triggered by recent observations from professional services firm KPMG, which flagged potential gaps, risks, and ambiguities in the new tax framework.
According to the statement, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, briefed the Council on the scope, objectives, and current state of implementation of the tax reforms.
Oyedele explained that the reforms are designed to address long-standing inequities in Nigeria’s tax system and promote shared prosperity by fixing a framework he described as fragmented, complex, regressive, and burdensome to individuals and businesses.
The committee also presented an overview of the new tax architecture, outlining its priorities, targets, implementation challenges, and the opportunities it presents for broad-based economic transformation.
To ensure effective execution, the committee sought the backing of state governments, whose governors are statutory members of NEC, stressing that sub-national cooperation is critical to the success of the reforms.
As part of its recommendations, the committee called “on states to enact a Tax Harmonisation Law” to align sub-national tax practices with the new national framework.
It also proposed “the adoption of a presumptive tax regime for the informal sector”, aimed at expanding the tax base while reducing compliance burdens for small and informal businesses.
In addition, the committee tabled the need for the “approval of a National Fiscal Policy” and urged increased resourcing of State Internal Revenue Services to strengthen tax administration capacity across the country.
In response, the Council “directed the committee to develop a more comprehensive and detailed brief for presentation at NEC’s forthcoming conference scheduled for February.”
The aim, according to the Council, is to better prepare sub-national governments for a robust and coordinated implementation of the new tax laws nationwide.
NEC’s directive reflects mounting concerns among investors, tax advisers, and other stakeholders over how Nigeria’s new tax laws will be interpreted and implemented.
Clarity and consistency in interpretation will play a critical role in shaping compliance behaviour, influencing capital inflows, and sustaining overall economic confidence at a time when Nigeria is seeking to attract investment and stimulate growth.
The planned engagement also signals the government’s recognition that state-level buy-in is essential, given the significant role sub-national governments play in tax administration and enforcement.