States Reduce Global Debt by 32% in One Year, FG Details Tax Reform Goals
By Patience Ikpeme
State governments in Nigeria have collectively reduced their global debts by an impressive 32 percent within the past year, the federal government has revealed.
Vice President Kashim Shettima, represented by his Special Adviser on Economic Affairs, Dr. Tope Fasua, disclosed this information at the 27th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja on Tuesday.
According to the Vice President, “Our states have paid down in just one year, 32% of their global debts. Many of our states have doubled and tripled their internally generated revenues in the same space of time.”
He added that “Hardly does any of our states borrow for now, but with a repositioning of their balance sheets, we see an opportunity for states to leverage their good standing and combining their current liquidity, we hope to see an explosion of local and rural infrastructure all over Nigeria.”
The Vice President stated that “the focus of President Bola Ahmed Tinubu is that the common man should not be cannon fodder for our economic policies.”
The government, he said, “is on a mission to eradicate food poverty and reduce to a minimum multidimensional poverty through the provision of sundry infrastructure that makes our lives worth living and that add joy to the hearts of our people.”
The immediate challenge, according to Vice President Shettima, “is to ensure that the gains in the macroeconomy percolate to the poorest amongst us. A lot of the heavy lifting will however be done at the state and LG level since the Federal Government pays the salaries of roughly 100,000 civil servants and about 2 million public servants only – the remainder of our workers are at state and local government level and every Nigerian lives in a local government area.”
“In terms of food production, we are working on ensuring adequate security so that more of our arable land will be tended. The Federal Ministry of Agriculture is also ensuring that key food imports are grown locally e.g. wheat and rice. Results will surely bear us out,” he said.
Adding to the Vice President’s remarks, President Bola Ahmed Tinubu, represented by the Minister of State for Finance, Dr. Doris Uzoka-Anite, explained that the ongoing reform of Nigeria’s tax system aims to create a framework that supports enterprise development, reduces poverty, and contributes meaningfully to the nation’s overall development agenda.
The President stated that the administration is determined to build a tax architecture that strengthens national economic goals while ensuring fairness and accountability.
“Our goal is to build a tax system that supports enterprise, reduces poverty and delivers on our national development agenda,” he said.
According to the President, taxation remains a central pillar of the reform efforts. He stressed that a robust, transparent, and equitable tax regime is not only essential for funding public services and infrastructure but also for building a culture of accountability and long-term stability in governance.
President Tinubu noted that the administration is prioritizing implementation by investing in digital infrastructure and data analytics to improve compliance and enhance the quality of service to taxpayers.
“We are leveraging technology and data analytics to enhance tax compliance and improve service delivery. The digitization of tax processes is already yielding positive results,” he stated.
To this end, the federal government has embarked on a broad-based restructuring of the tax administration system, including updates to the legal and institutional frameworks that govern taxation in the country.
The President acknowledged that while these reforms are necessary, they also come with challenges. Addressing these challenges, he said, requires extensive collaboration with stakeholders, continuous capacity building, and the political will to stay the course. “Collaboration remains very key and critical,” he noted.
He praised the role of CITN and its members in shaping Nigeria’s tax system, stating that the conference offers an important platform for translating policy and legal instruments into measurable outcomes. He also noted that the forum provides an opportunity to develop practical solutions to long-standing issues such as integration of the informal sector, fiscal federalism, and achieving equity in taxation.
Tax professionals, he added, have a major role to play as custodians of Nigeria’s tax future.
In his remarks, CITN President and Chairman of Council, Mr. Samuel Agbeluyi, called for stronger synergy between policy formulation, legal structure, and implementation mechanisms. He said that when these three components are aligned, the result is a tax system that engenders public trust, encourages voluntary compliance, and fosters shared prosperity.
“For taxation to truly serve developmental goals, the triad of policy, law, and implementation must be harmoniously aligned. When policy is progressive, the law enabling, and implementation efficient and equitable, the result is a system that promotes trust and prosperity,” Agbeluyi stated.
He warned that Nigeria is facing daunting economic, social, and security challenges, making it even more urgent to establish sustainable fiscal solutions. He noted that tax reforms sit at the heart of those solutions, and the effective implementation of tax policy is vital.
“No matter how well-designed a policy or law may be, its success ultimately depends on the quality of its implementation. As tax professionals, our contributions have never been more crucial than now,” he said.
Mr. Agbeluyi also discussed the Nigeria Tax Administration Bill, 2024, and the Joint Revenue Board of Nigeria (Establishment) Bill, 2024—two key legislative proposals currently under consideration. He explained that the bills propose, among other things, the creation of accredited Tax Agents to serve as intermediaries between taxpayers and tax authorities.
According to him, the provisions relating to the appointment and accreditation of Tax Agents, particularly Sections 32 and 143 of the Nigeria Tax Administration Bill and Section 5(n) of the Joint Revenue Board Bill, are vital for institutionalising competence and professionalism in the system. He revealed that the CITN has made submissions for the refinement of these sections during public hearings.
“We believe that the Senate of the Federal Republic of Nigeria will give due consideration to the expert recommendations submitted by the Institute,” Agbeluyi said.
He further called on the over 31,000 members of the CITN to rise to the occasion by actively supporting the reforms through personal and collective efforts. He said that for tax professionals to play their role effectively, continuous learning and ethical conduct must be prioritized.
“To do this effectively, we must continually equip ourselves with the right skill set. Our distinction should be evident in the depth of knowledge we possess and the level of professionalism and ethical conduct we demonstrate,” he concluded.
