FAQ
Frequently Asked Questions
What exactly is the Committee set up to do?
The committee was set up by President Bola Tinubu to review and redesign Nigeria’s fiscal system with respect to (1) revenue mobilisation, both tax and non-tax (2) quality of government spending and (3) sustainable debt management. The committee will also identify measures to make Nigeria an attractive destination for investment and facilitate inclusive economic growth.
What is the timeframe for the assignment?
One year, divided into 3 milestones — (1) Quick Wins within 30 days, (2) Critical Reforms within 6 months, and (3) Implementation of structural revenue reform measures and critical fiscal policy changes.
Is the mandate limited to the federal government?
No. The committee will work with all levels of government as critical stakeholders to ensure effective collaboration in the design and implementation of necessary fiscal policy changes and localisation of reforms at the sub-national level as may be applicable.
Who are the members and how were they selected?
Members are drawn from a diverse pool of eminently qualified Nigerians across all geopolitical zones, age brackets, religion and gender. They represent the private sector — trade associations, small businesses, civil society, professional bodies — as well as public sector institutions at federal, state and local government levels.
How can the public contribute?
The committee has opened channels of communication for submission of inputs. We have outlined various stakeholder engagement sessions with Nigerians from all walks of life — people living with disabilities, artisans, Nigerians in the diaspora, multinational companies and the international investment community. Everyone who has something to say will be heard.
Should we expect more taxes?
No. We do not intend to introduce new taxes or impose higher tax rates. Our mandate is to reduce the number of taxes and levies while harmonising revenue collection to reduce the burden on people and businesses. The objective is to avoid taxing investment, capital, production or poverty.
How will we achieve 18% Tax-to-GDP in 3 years?
The average tax-to-GDP ratio for Africa excluding Nigeria is about 18%; the estimated tax gap is around ₦20 trillion. By leveraging technology and tax intelligence, rationalising incentives, reducing collection costs and optimising revenue from government assets and natural resources, we can close the gap without introducing new taxes.
Will FIRS replace other revenue agencies?
No agency has been stopped from collecting revenue — many are empowered to do so by law. However, many agencies would rather focus on their primary functions, so we intend to harmonise the fragmented revenue collection functions into one agency per tier of government, as is the case in many countries including the leading tax regimes in Africa.
Can we trust the recommendations will be implemented?
The committee was set up not just to advise the government but also to support implementation. The assignment is being carried out to the highest degree of independence, driven by national interest within the context of modern-day economic realities and emerging international issues.