Sharing his thoughts during a two-day retreat on Economic transformation and development in Abuja, Deputy Speaker of the House of Representatives, Benjamin Kalu, highlighted inefficiencies in Nigeria’s tax system. He mentioned that the country faces challenges with tax collection, resulting in one of the lowest rates globally, estimated at around 10.8 percent of GDP.
Referencing data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS), Kalu emphasized the need for reforms to broaden the tax base, simplify tax regulations, and improve compliance mechanisms without imposing excessive burdens on citizens.
He emphasized the critical role of the National Assembly, particularly the House of Representatives, in driving these reforms, stating, “We hold the responsibility of ensuring that the aspirational goals outlined in the PIA [Petroleum Industry Act] are translated into tangible advantages for all Nigerians. This retreat is a crucial platform for us to collectively devise strategies to fulfill this essential duty.”
Addressing the significance of the Petroleum Industry Act (2021), Kalu pointed out that it marks a significant step in reforming Nigeria’s oil and gas sector. He mentioned its potential to unlock vast economic prospects and steer Nigeria towards a more sustainable and prosperous future.