The Chairman of the Senate Committee on Finance, Sani Musa (APC, Niger East), has stated that raising taxes alone does not drive economic growth.
Musa made the comments while responding to questions after the passage of the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) 2025-2027 in Abuja on Tuesday.
Musa emphasized that while tax reform is important, the key to economic transformation lies in increased production. “Every country that wants to change its economy must focus on production. It is through production that taxes can be generated,” he said.
The Senate Committee Chairman, whose panel is reviewing the Tax Reform Bills, appealed for patience, assuring Nigerians that consultations are ongoing and that the National Assembly will address concerns from various segments of society to reach a fair conclusion.
On the Senate’s decision to investigate the Nigerian National Petroleum Company Limited (NNPCL), Musa highlighted concerns over remittance shortfalls, saying the investigation aims to reconcile discrepancies between NNPCL’s remittances and claims from the Nigeria Extractive Industries Transparency Initiative (NEITI).
In a related development, Senator Jimoh Ibrahim (APC, Ondo South) expressed concerns over Nigeria’s tax system, saying that 72% of taxable entities are currently excluded from the tax net. He stressed the need for the wealthy to contribute more, particularly during these challenging times, pointing out that Nigeria’s GDP-to-tax ratio is just 18%.
Ibrahim stated, “We should be worried that 72% are not in the tax net. The rich need to do more, especially in this difficult period.”
