Former Executive Chairman of the Federal Inland Revenue Service, FIRS, Muhammad Nami, has stressed the need for Nigeria to align its tax system with global best practices, saying outdated tax laws were impeding national progress.
Nami, who stated this at the 9th Top 10 Magazine Man of the Year & Excellence Awards, on Saturday in Abuja, said Nigeria stands at a critical juncture, and tax reform is the key to securing its economic future.
He therefore called for accelerated passage of the tax reform bills before the National Assembly as reform in tax administration is a long-overdue step toward economic sustainability.
“Doing the same thing and expecting different results is economic suicide. For decades, Nigerians have clamored for economic prosperity, better infrastructure, and improved social services.
“These reforms present us with an opportunity to turn aspirations into reality,” he said.
Nami stressed that passing the tax reform bills was only the first step, emphasizing that implementation would be the real test of Nigeria’s commitment to financial independence.
“If we fail to implement these reforms effectively, we will remain shackled to a cycle of debt and financial uncertainty.
“But if we succeed, we will position ourselves as a truly sovereign nation—one that funds its own development without excessive reliance on creditors.
“In our hands today lies a defining choice. We either continue our overreliance on borrowed funds to finance our national budget, or we take decisive action to reform and strengthen our tax system,” he said.
According to him, the country’s debt profile had soared to N143.3 trillion as of mid-2024, with external debt alone projected to exceed $45.1 billion by year-end.
Nami warned that without urgent action, the country could find itself at the mercy of the International Monetary Fund, IMF, World Bank, and local creditors, a scenario that could further strain the nation’s sovereignty.
While acknowledging the controversies surrounding the Tax and Fiscal Reform Bills currently before the National Assembly, which have sparked heated debates among key stakeholders, he called for more stakeholder engagement.
He asserted that the bills before the National Assembly would modernize Nigeria’s tax system, improve revenue collection, and reduce dependency on external borrowing.
“But let us not throw away the baby with the bathwater. We must carefully assess the concerns surrounding these reforms and ensure that they serve the collective interests of all Nigerians,” he said.
Nami said the country has a choice to continue down a path of endless borrowing or to take bold steps toward fiscal sustainability, adding that Nigeria’s economic future depends on the decisions it make today.
