.. No cause for alarm – legislative expert
… Sanwo-Olu urges effective implementation, backs reforms
The National Association of Seadogs (NAS) (aka Pyrates Confraternity) has warned that Nigeria’s ongoing tax reform process risks a legitimacy crisis amid concerns over transparency, legality and alleged post-legislative alterations to the laws.
In a statement signed by its Cap’n, Dr. Joseph Oteri, the association acknowledged the need for comprehensive tax reform, but cautioned that the process being adopted could erode public trust, weaken voluntary compliance and undermine constitutional governance.
The group expressed particular concern over a recent tax-related Memorandum of Understanding between Nigeria and France, which it said was concluded with limited public disclosure and insufficient legislative scrutiny.
According to the association, reports suggesting expanded information exchange, cross-border tax enforcement powers and extensive data-sharing obligations raise serious red flags.
“International tax cooperation must not come at the expense of fiscal sovereignty, taxpayer rights or democratic oversight.
Any agreement that potentially exposes Nigerian citizens and businesses to foreign tax authorities requires transparency, reciprocity and explicit parliamentary approval,” the statement said.
NAS warned that any perception that Nigeria is yielding disproportionate control over taxpayer data or fiscal decision-making to external interests is troubling, particularly in view of weak data protection enforcement and declining public confidence in institutions.
The association also raised concerns over plans to expand the Tax Identification Number regime into a fully data-driven tax administration system, cautioning that a surveillance-heavy framework without strong legal safeguards, independent oversight and enforceable data privacy protections could provoke resistance rather than compliance.
More seriously, NAS described as “credible” allegations that the versions of the Tax Reform Acts signed into law differ materially from those passed by the National Assembly after legislative debate and public hearings.
“Claims that provisions were altered, inserted or removed after legislative passage strike at the heart of constitutional governance, legislative supremacy and the rule of law,” the group warned, adding that unresolved allegations could render the reforms legally and morally defective.
It urged the Federal Government to immediately publish the official consolidated texts of all Tax Reform Acts and provide a line-by-line clarification of any discrepancies between the versions passed by the legislature and those assented to.
The association further called for early issuance of implementation regulations ahead of January 1, 2026, robust guarantees of taxpayer rights, enforceable data protection standards and transitional fiscal support for economically vulnerable states and sectors.
While noting that Nigeria’s tax system requires reform due to inefficiency and revenue leakages, NAS said measures such as retaining VAT at 7.5 percent and expanding exemptions offer limited relief.
“Economic concessions cannot compensate for procedural opacity or constitutional defects,” the statement said, stressing that genuine fiscal reform must strengthen, not weaken, the social contract.
Meanwhile, Mr Agabaidu Jideani, a legislative expert, said there are constitutional safeguards which allow the Clark of the National Assembly to correct identified discrepancies between a passed bill and an Act as signed by the President.
He said this during an interview with newsmen in Abuja on Tuesday.
There had been debate over the authenticity of the recently passed tax reform laws.
The controversy started when a member of the House of Representatives, Abdulsamad Dasuki, alleged discrepancies between the tax laws passed by the National Assembly and the versions later gazetted and made available to the public.
But Jideani said there was no need for the controversy as the law-making process had an internal mechanism to rectify discrepancies.
“On Dec. 17, 2025, a lawmaker raised concerns in the House of Representatives regarding perceived variations between harmonised bills and published versions.
“The development has renewed public interest in constitutional provisions governing legislative authority and the separation of powers,” he said.
According to him since the Clark of the House was in possession of the National Assembly copy, all he had to do was to reconcile it with the gazette version.
“Central to this process is the Clerk of the National Assembly, a key legislative officer responsible for certification and documentation.
“Under the Act, the Clerk certifies a clean copy of each harmonised bill as a true reflection of legislative approval.
“The law also mandates the preparation of identical copies for the National Assembly, the President, and the Chief Justice of Nigeria,” he said.
Jideani, also Director-General of the Abuja Chamber of Commerce and Industry said the legislative procedures therefore, preserve the accuracy of bills after their passage.
He said the safeguards were designed to promote transparency, accountability, and public confidence in Nigeria’s law-making process.
It would be recalled that the tax reforms are part of broader fiscal measures aimed at strengthening revenue generation amid prevailing economic conditions.
The laws include the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act, and Joint Revenue Board Establishment Act.
The bills were initiated by the executive in 2024 and passed in identical form by both chambers of the National Assembly in early 2025.
They are scheduled to come into effect in 2026.
Also, Governor Babajide Sanwo-Olu of Lagos State has said that the success of Nigeria’s ongoing tax reforms will depend largely on effective implementation at the sub-national level.
Sanwo-Olu said that Lagos was ready to play a leadership role in the implementation.
He spoke on Tuesday at a tax reform summit in Lagos State, with the theme: “From Reforms to Results.”
At the summit, stakeholders examined practical steps for translating policy into measurable outcomes.
The governor said that Lagos, regarded as a trailblazer in fiscal innovation and regulatory administration, could no longer rely on past achievements in the face of rapid population growth, expanding economic activities and rising competition.
“Lagos cannot rest on its past glory. In a rapidly-changing economic environment, the question before us is not whether to adapt, but how to adapt most effectively,” Sanwo-Olu said.
He said that the tax reforms were not merely about increasing revenue, but about building public trust, encouraging voluntary compliance and creating a fiscal ecosystem where citizens and businesses could thrive.
“Taxation is a social contract. When government is responsible, practical and responsive, people are more willing to comply because they can see their contributions translated into infrastructure, social services and improved quality of life,” he said.
Sanwo-Olu said that Lagos would continue to deploy tax revenues toward transport infrastructure, education, security, environmental resilience and targeted social protection programmes.
He said that the state consistently achieved over 90 percent budget implementation with capital expenditure outweighing recurrent spending.
“As national reforms place emphasis on consumption-based taxation, data integration and system efficiency, Lagos is positioning itself to ensure that implementation delivers real value to our people and our economy.”
He dismissed claims that the reforms would place additional burden on the poor, saying that the objective was to protect vulnerable groups and strengthen compliance among higher income earners.
“Only a small percentage currently bears the tax burden.
”These reforms are designed to broaden the base, protect small businesses and ensure equity across the system,” he said.
Sanwo-Olu’s Special Adviser on Revenue and Taxation, Mr Abdulkabir Ogungbo, said the summit marked another milestone to work in alignment with stakeholders and the presidential committee on tax reforms.
“The committee is dedicated to unveiling strategies for the integration of revenue administrative framework in a renewed commitment to establish innovative, intentional and transparent seamless systems that would address multiple taxation,” he said.
Earlier, the state Commissioner for Finance, Mr Oluyomi Abayomi, described the tax reform agenda as timely and critical to sustaining the trajectory of the growth of Lagos.
He said that Lagos State Ministry of Finance was ready to provide coordination and leadership to translate deliberations from the summit into executable plans.
“We have moved beyond theory. The hard work now is implementation, and the ministry is prepared to drive this process in collaboration with other tiers of government, the private sector and professionals.
“This is more than revenue collection. It is about fostering trust, ensuring fairness and creating a system where everyone especially small businesses can prosper while those with greater capacity meet their full obligations,” Abayomi said.
He expressed confidence that, with sustained collaboration and data-driven approaches, Lagos would continue to lead in implementing reforms that would align with national objectives while reflecting the state’s unique economic rrealities.
