Samuel Agbeluyi: Tax Reform Bill A Necessary Step, But Needs More Data Integration

Samuel Agbeluyi, President of the Chartered Institute of Taxation, has pointed out that harmonising national identification systems like the NIN (National Identity Number) and BVN (Bank Verification Number) would help capture tax-relevant data more efficiently.

“The NIN, ID card we carry, various government agencies having shallow database has to be harmonised,” he said. “The BVN is a key point in this—once you do electronic transactions, all your information can be captured.”

Speaking in an interview on ARISE NEWS on Tuesday, Samuel Agbeluyi, President of the Chartered Institute of Taxation, shared his views on the proposed tax reform bill, calling it a necessary step towards addressing Nigeria’s revenue challenges. While acknowledging some concerns, Agbeluyi expressed optimism about the bill’s potential to improve the country’s tax system.

“The bill is a positive one, that is clear,” Agbeluyi remarked. “I doubt if anybody is actually seeing it from a negative perspective. I also agree that there are issues that have been raised in the bill, but overall, the bill is what we need.”

Agbeluyi stressed the urgency of tackling Nigeria’s revenue crisis, which sees more than 90% of the nation’s revenue going to service debt. “That is a recipe for disaster,” he said, underscoring the need to reform the tax system to generate more income.

He highlighted the inefficiencies within the current tax structure, noting that over 60 different types of taxes exist, but only a handful generate meaningful revenue.

“The sanity that is embedded in this bill is overdue and necessary,” he added, calling for its swift passage into law.

Agbeluyi also stressed the importance of state governors in building public trust in the tax system.

“A tax man can use governor Zulum of Maiduguri to market the reason to pay tax. Because why is it that people are reluctant to pay their taxes, it is because of the trust deficit, and why the trust deficit? Because people cannot relate what they pay over to the government to what it is being used for but if you get to Maiduguri today, you will see what the money is being used for” he said, referring to the visible infrastructure improvements in states where tax revenues are used effectively.

Addressing concerns about third-party tax collection, Agbeluyi explained that while third-party involvement is necessary, accountability and transparency must be ensured. He pointed out that private sector contractors can assist in data gathering and revenue generation, which has already increased the efficiency of tax collection.

“In the private sector, some people can do this better than the various internal revenue services across the country,” he noted.

Agbeluyi also emphasised the importance of data in tax reform, noting that

“Data don’t lie. We can do another simulation, reduce the 60% to 40%, or keep constant the derivation before and apply attribution, let us see what is going to come out—Data will solve this.”

He called for continued consultations between governors, lawmakers, and other stakeholders to ensure that the reform process is transparent and effective.

“We need to work with data, in data we believe,” he reiterated.

Faridah Abdulkadiri

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