The Nigerian Senate has resumed its deliberation on the Tax Reform Bills, which include a significant proposal to harmonize several existing taxes, including the 0.25% NASENI (National Agency for Science and Engineering Infrastructure) tax, into a unified 2% development fund. This new fund will be dedicated to supporting the recently established student loan scheme, which aims to benefit Nigerian youths by 2030.
The proposed reforms, introduced by Senate Leader Sen. Opeyemi Bamidele, also include provisions to simplify the tax system, ease burdens on small businesses, and address issues of double taxation. The 2% unified tax is seen as a strategy to streamline various levies, such as the NASENI tax and the 2.5% education tax, into a single, more manageable collection while ensuring continued funding for key national initiatives.
While there is support for the tax reforms’ potential to enhance economic growth and foster financial inclusion, some lawmakers, notably Sen. Ali Ndume, have expressed concerns about the timing of the reforms and the need to amend the Constitution before they can take effect. Despite these objections, the Senate passed the bills for a second reading, with the President of the Senate, Godswill Akpabio, referring them to the Senate Committee on Finance for further scrutiny.
The proposed reforms aim to bring much-needed clarity and efficiency to Nigeria’s tax system while funding important initiatives like the student loan scheme and technological infrastructure supported by NASENI.
