Alleged alteration of Tax Administration Act triggers calls for probe, restraint
By Chris Uba
Fresh controversy has emerged over Nigeria’s tax reform process following allegations that key provisions of the Tax Administration Act were altered after being passed by the National Assembly and signed by the President, but before being gazetted by the Federal Government.
The concerns were raised by Muhammad Nami, the immediate past Executive Chairman of the Federal Inland Revenue Service (FIRS), the Joint Tax Board and President of the Commonwealth Association of Tax Administrators (CATA). He described the alleged alterations as unprecedented and disturbing, warning that they pose serious risks to the integrity of Nigeria’s legislative process.
According to Nami, the version of the Tax Administration Act eventually gazetted differs materially from the bill approved by both chambers of the National Assembly. He said the alleged changes were made by unidentified individuals, without the knowledge of either the Presidency or the legislature, and called for a thorough, independent investigation to identify and prosecute those responsible.
He expressed concern over calls in some quarters for protests against the government, noting that there is no evidence linking the executive to the alleged tampering. Nami cautioned that protests could further destabilise the country at a time when Nigeria is grappling with insecurity, fiscal deficits and rising public debt.
Nami also questioned demands for fresh stakeholder consultations or the abandonment of the amended tax laws, stressing that the reforms were the product of extensive research, investment and a legislative process that began in 2022. He warned that discarding the reforms could undermine years of work aimed at strengthening Nigeria’s tax system.
Findings attributed to a National Assembly committee reviewing the alleged alterations indicate that substantive provisions were inserted, deleted or modified after passage by both chambers. The committee reportedly found that several oversight, accountability and reporting mechanisms approved by lawmakers were removed, while new coercive and fiscal powers—such as arrest powers, garnishee without court orders, compulsory foreign currency computation and appeal security deposits—were introduced without legislative approval.
According to the review, these changes cannot be classified as clerical or editorial corrections.
Nami warned that if the allegations are confirmed, the alterations would have grave constitutional implications. He noted that Sections 4 and 58 of the 1999 Constitution vest law-making powers exclusively in the National Assembly, rendering any post-passage alteration unconstitutional, ultra vires and void. He added that such provisions could be struck down by the courts, creating legal and fiscal uncertainty.
As a way forward, Nami urged the National Assembly to consider cancelling the gazetted version of the Tax Administration Act and to work jointly with the executive to re-gazette the exact law passed by both chambers. He also called for a comprehensive investigation into the circumstances surrounding the alleged alterations, with prosecution of those found culpable.
He further advised the executive to direct the FIRS to suspend the release of regulations and information circulars based on the disputed law in order to prevent further confusion in the tax system.
Despite the controversy, Nami urged Nigerians to remain calm and to support the National Assembly’s efforts to resolve the issue. He stressed that the tax reforms are critical to blocking revenue leakages, funding economic growth, addressing budget deficits, improving security, expanding infrastructure and attracting foreign direct investment.
He added that several provisions of the reforms are designed to prioritise taxing prosperity rather than poverty, while enabling small and medium-sized enterprises to grow, create jobs and eventually expand the tax base.
The allegations have intensified pressure on both the legislature and the executive to act swiftly to restore confidence in the tax reform process and safeguard the integrity of Nigeria’s law-making system.
