LCCI Backs FG’s Tax Reform Bills Amid Opposition From Northern Governors, NLC, ASUU, Others

The Lagos Chamber of Commerce and Industry (LCCI) has expressed support for the federal government tax reforms bills adding that the move would improve Nigeria’s fiscal stability.

The Chamber projected that 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, revealed these 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 such as 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.

Coordinator of ASUU Yola Zone, Dani Mamman, said it is unacceptable that the proposed controversial NTB 2024 seeks to dismantle TETFund by allocating only 50 percent of the development levy to TETFund from 2025 to 2026, with the remaining half diverted to NITDA, NASENI and NELFUND.

The zone which comprises Adamawa State University (ADSU) Mubi, Modibbo Adama University (MAU) Yola, Federal University Gashua (FUGA), Taraba State University (TSU) Jalingo, University of Maiduguri (UNIMAID), and Yobe State University (YSU), Damaturu noted that the bill would eliminate TETFund and will cripple tertiary education.

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, had stated 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 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. “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.

Turning to the 2025 federal budget, Idahosa hailed the government’s allocation of N8tn for infrastructure projects and N5tn for education and healthcare.

These investments aim to close critical infrastructure gaps and improve human development indices. However, he expressed concerns about the projected budget deficit of N11.3trn, cautioning against over-reliance on borrowing.

Idahosa also underscored the importance of maintaining momentum on economic reforms, particularly as the country prepares for the rebasing of its GDP and Consumer Price Index (CPI).

He urged fiscal and monetary authorities to remain focused on achieving targets, including a 4.2 per cent GDP growth rate and a reduction in inflation to 15 per cent by year-end.

“The path to economic transformation is neither short nor easy, but deliberate policies and private sector collaboration can drive inclusive and sustainable growth,” he noted.

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.

LCCI Backs FG’s Tax Reform Bills Amid Opposition From Northern Governors, NLC, ASUU, Others is first published on The Whistler Newspaper