AUTHOR: ALFRED AJAYI
Months ago, Nigeria’s media space was agog with reactions to the tax reform bills initiated by President Bola Ahmed Tinubu’s administration. The bills presented are the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; The Nigeria Revenue Service (Establishment) Bill, 2024; The Nigeria Tax Administration Bill, 2024; and the Nigeria Tax Bill, 2024.
According to the government, the bills were targeted at creating an efficient tax system that will spur the country’s development. Without disputation, tax reform remains a critical component of Nigeria’s economic policies, aiming to enhance revenue generation, reduce fiscal deficits, and ensure a fair taxation system.
It is therefore not out of place that the Federal and sub-national governments have introduced various tax reform bills to modernize the tax structure, improve compliance, and address economic leakages. However, the tax reforms bills introduced by the Federal Government in 2024 have sparked widespread debates, with stakeholders taking divergent positions.
In all these, the media, as the fourth estate of the realm, has played a significant role in amplifying these perspectives, influencing public opinion, and ultimately shaping policy outcomes.
The Nigerian government has proposed several tax reform bills to address inefficiencies in the existing tax system. The reforms have key elements including broadening the tax base to cover more individuals and businesses in the informal sector as well as harmonization of taxes by reducing multiple taxation across different levels of government, to enhance ease of doing business.
The reforms are also targeted at digitizing the process through the introduction of taxes on digital transactions and foreign-based technology firms operating within Nigeria, while also increasing Value Added Tax (VAT) from 5% to 7.5% and further proposed increases to boost revenue. The reforms also propose imposition of new excise duties (new levies) on luxury goods and select industries to curb excessive consumption and generate additional revenue.
Two sides of a coin
Expectedly, the reforms have been met with both support and resistance, leading to a heated national discourse over the past months. Proponents of the tax reform bills, including government officials, financial experts, and international economic organizations, argued that the Nigeria’s low tax-to-GDP ratio (about 6%-8%) is unsustainable and must be improved to fund critical infrastructure and social services. For them, the new bills will help the country to generate more revenue to address such a critical need.
The reforms are also targeted at economic stability as increased revenue from taxes is expected to reduce reliance on oil revenues, making Nigeria’s economy more resilient to global oil price fluctuations. One of the strongest arguments in favour of the reforms is that they will make the tax system fair and equitable. Proponents contend that wealthier individuals and corporations should contribute more.
They equally opined that the reforms are capable of increasing the volumes of foreign investments in the country. They contended that a structured tax system will enhance investor confidence and improve Nigeria’s ranking in global ease of doing business indices.
While their reasons sound good and reasonable, they were criticized by those on the opposing side who argued against the Tax Reform Bills. The critics, including business owners, civil society organizations, and some opposition politicians, opposed the bills on various grounds including the likelihood the exacerbate the already worsening economic situation in the country. They argued that increased taxation, especially VAT and excise duties, would further burden struggling businesses and households already grappling with inflation and unemployment.
Apart from this, many businesses lament that despite promises of tax harmonization, they still face excessive levies from federal, state, and local governments. Trust deficit equally played a bad role as some critics cite concerns over government mismanagement of tax revenues. They submitted that higher taxes would not necessarily translate into better public services.
The opponents of the bills also feared that they will pose a threat to digital economy. Startups and digital service providers expressed worries that digital taxation could stifle innovation and drive businesses out of Nigeria.
The Media’s Intervention
As the debate over the reforms got underway, the Nigerian media played a pivotal role in shaping the discourse and putting the issues in the right perspective. They amplified the voices from both sides through interviews, editorials, and investigative reports. The media provided platforms for both proponents and opponents to air their views, giving ordinary Nigerians a deeper knowledge of the issues.
Many media organizations took it upon themselves to set the records straight by fact-checking certain claims by experts from the two sides to win public sympathy and understanding. They debunked misinformation and ensured informed discourse. This helped Nigerians in taking side whether for or against the bills.
The media has also played a huge role in mobilizing the public to engage with policymakers on the bills by attending town halls and other gatherings which afforded government functionaries the opportunity of explaining the benefits of the reforms. The mobilization which cut across various media platforms, has helped in calming the nerves, while deliberations on the bills are yet on-going and the controversy cannot be said to be over.
Media spotlight and pressure has equally led to certain adjustments made to the bills. Since the reforms were proposed, there has been widespread public outcry, fueled by media reports highlighting the potential economic burden on businesses and individuals. Investigative journalism and public debates have particularly scrutinized the impact of increased taxes on essential goods, digital transactions, and small businesses.
In response, the Nigerian government has made some modifications, including reviewing certain tax rates and offering exemptions to specific sectors to ease public concerns. Additionally, lawmakers have held public hearings and consultations with stakeholders, partly due to media-driven advocacy.
Ultimately, as Nigeria continues on its path toward economic reform, a well-informed public, driven by robust media engagement, remains key to achieving sustainable fiscal policies. The media must remain alive to its responsibility of helping the citizens to make sense out of complicating subject matters like the tax reform bills.
SIDEC 
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