The House of Representatives has passed for second reading a bill seeking to amend the 1999 Constitution to clearly define the taxation powers of the Federal, State, and Local Governments and curb multiple taxation in the country.
The proposed legislation, titled “Bill for an Act to Alter the Constitution of the Federal Republic of Nigeria, 1999 (as amended), to Clarify the Taxation Powers of the Federal, State, and Local Governments; Define the Scope of Taxes and Levies Collectible by Each Tier of Government; Prevent Multiple Taxation and Unlawful Outsourcing of Revenue Collection and for Related Matters,” was sponsored by the Deputy Speaker, Benjamin Kalu, and six other lawmakers.
Leading the debate on the general principles of the bill, co-sponsor Hon. Joshua Audu Gana said the measure aims to bring clarity to Nigeria’s fiscal system by defining the scope of taxes and levies collectible by each tier of government.
Gana explained that the bill would “bring order where confusion reigns,” and ensure that “every naira raised, shared, or spent by government is traceable, lawful, and transparent.”
He noted that many government agencies had resorted to the unlawful engagement of private consultants or agents to collect taxes and levies, a practice that encourages corruption, harassment, and revenue leakages.
“At the heart of this Bill is a simple but transformative goal to align the revenue powers of the Federation, States, and Local Governments in a way that promotes efficiency, discourages duplication, and restores trust in the fiscal system,” Gana stated.
He lamented that Nigeria’s fiscal architecture had become “congested and conflicting,” with multiple taxes and levies imposed at various levels of government, often on the same taxpayers.
According to him, the overlapping responsibilities of revenue agencies have led to inefficiencies and frequent litigations over collection rights, as seen in the disputes involving Value Added Tax (VAT), Stamp Duties, and Personal Income Tax.
