The Speaker of the House of Representatives, Mr Tajudeen Abbas, says Nigeria’s low tax revenue remains a major constraint to national growth.
Abbas said this at the presentation of the 2025 Appropriation Bill to a joint session of the National Assembly by President Bola Tinubu in Abuja on Wednesday.
According to him, Nigeria’s tax-to-GDP ratio, currently at approximately 10.9 per cent for 2024, is among the lowest in Africa, significantly below the continental average of 15.6 per cent.
He said that Nigeria’s VAT collection efficiency at approximately 20 per cent was below the near 70 per cent efficiency achieved by South Africa, Equatorial Guinea, and Zambia.
“In comparison, South Africa’s tax-to-GDP ratio stands at 25.4 per cent, while Rwanda and Ghana, with much smaller populations, report ratios of 15.1 per cent and 14.1 per cent, respectively.”
He said that Nigeria’s fiscal realities warranted critical reflection, adding that in spite of being Africa’s most populous nation with over 220 million people, the 2024 national budget of 36.7 billion dollars remained modest compared to other countries.
This, he said, included South Africa, with a budget of 160 billion dollars for its 60 million citizens; Egypt, with 110 billion dollars for 110 million people; Algeria, with 60 billion dollars for 45 million people.
Others included Morocco, which allocated 50 billion dollars for its 37 million residents.
Abbas said addressing these challenges required urgent and comprehensive tax reforms to broaden our tax base, improve compliance, streamline administration, and reduce reliance on borrowing.
He said the lawmakers would continue to work with the Tinubu administration to ensure that such reforms were equitable, effective, and considerate of the needs of vulnerable populations.
He said the national assembly had engaged stakeholders to address concerns raised on the tax reform bills, fostering trust and cooperation.
“I have personally led numerous high-level meetings and consultations with state governors and other key stakeholders on this issue, achieving positive outcomes.”
He further said that Tinubu’s 2025 budget represented a crucial step toward economic recovery and sustainable development.
The speaker expressed confidence that the President’s reforms would soon deliver tangible benefits for all Nigerians while commending him for his visionary leadership and unwavering commitment to Nigeria’s progress.
He commended the profound sacrifices made by Nigerians over the past year, stating that the removal of fuel subsidies, rising inflation, and adjustments to economic policies had created challenges.
According to him, these sacrifices are necessary for building a stronger, self-reliant, and prosperous nation.
“I urge all Nigerians to remain resilient and united in our collective pursuit of a brighter and better Nigeria.”
He assured the President of the lawmakers’ commitment to support the successful implementation of the 2025 budget.
“This is not merely your budget; it is a national project requiring collaboration across all arms of government.
“We will work to ensure its timely passage, provide legislative support for critical reforms, and conduct robust oversight to guarantee transparency and efficiency in its execution.”
He said there was need to approach 2025 by embracing the realities with determination.
This, according to him, is by stabilising prices, boosting agricultural productivity, expanding infrastructure, and investing in education, healthcare, and security, which remain paramount priorities.
He said that to strengthen national unity and build trust, it remained essential for the government to communicate its achievements effectively Nigerians.(NAN)
