The Chairman of the Board of the National Credit Guarantee Company (NCGC), Yakubu Dogara, has said President Bola Tinubu inherited nothing short of economic “debris” when he assumed office in May 2023, a situation that compelled him to launch immediate reforms to avert national collapse.
Me Dogara stated this assertion on Tuesday in Abuja while delivering a paper at the inaugural Distinguished Parliamentarian Lecture with the theme “Navigating Tax Reforms in Nigeria: Insights on President Bola Tinubu’s Policies.”
|
|
He described the new tax reform laws signed by the President in June 2025 as “the most audacious fiscal overhaul in Nigeria’s history.”
The debris Tinubu inherited
Mr Dogara, a former speaker of the House of Representatives, said by the time Mr Tinubu took the reins of power from former President Muhammadu Buhari, the fundamentals of the economy were in shambles.
|
|
|
|---|
He noted that ₦22.7 trillion had been printed and injected into the economy through the controversial Ways and Means financing, thereby destroying the value of the naira in people’s pockets.
He said, “By the time President Tinubu took office, the economic debris of the nation had become too conspicuous to be ignored. N22.7 trillion had been printed and injected into the economy in the name of Ways and Means thereby destroying the value of the naira in our pockets.”
He pointed to the dual exchange rate system that enabled “anointed people” to amass hundreds of millions of naira through arbitrage from Central Bank of Nigeria (CBN) forex allocations without producing goods or services.
Mr Dogara further highlighted the growing trend of tying crude oil sales to foreign loans through forward-sale arrangements, a practice he said was becoming the norm.
“Some of the foreign loans had been procured in order to help strengthen the naira, a measure that could only be sustained by voodoo economics,” he stated.
Tinubu’s urgency as reformer
Faced with this scenario, Mr Dogara explained that Mr Tinubu had no luxury of time.
“From day one, it was very clear that something urgent, nay revolutionary, must be done to prevent our economy from imploding,” he said.
He described Mr Tinubu as a reformer who understood that democracy must not only guarantee political freedoms but also provide economic choices that lead to justice, especially for vulnerable groups least able to recover from economic shocks.
Committee’s revolutionary recommendations
To tackle Nigeria’s outdated tax framework according to the former lawmaker, Mr Tinubu constituted the Presidential Committee on Fiscal Policy and Tax Reform.
He described the committee’s recommendations as revolutionary, noting that they sought to dismantle obsolete laws and institutions, broaden the tax base, simplify compliance, and bring Nigeria in line with global practices.
The committee’s vision, he said, was to protect the poor, empower businesses, encourage investment, reduce inequality, and strengthen Nigeria’s competitiveness.
The tax laws
The tax laws signed by the president on 26 June are the Nigeria Tax Act (NTA), 2025, Nigeria Tax Administration Act (NTAA), 2025,, Nigeria Revenue Service Act (NRSA), 2025, and the Joint Revenue Board Act (JRBA), 2025.
The four tax reform laws, which were enacted in June, have since been published in the official gazette, according to Taiwo Oyedele, chair of the Presidential Committee on Fiscal Policy and Tax Reforms.
Mr Dogara, said the reforms consolidate 16 fragmented federal tax statutes into four comprehensive Acts.
According to him, while the NRSA and JRBA have a commencement date of 26 June , the NTA and NTAA will take effect from 1 January 2026 to allow adequate preparation.
Fuel surcharge controversy
On the controversial 5% fuel surcharge provided for in the new laws, Mr Dogara clarified that it is not a new levy but an existing provision under the Federal Roads Maintenance Agency Act of 2007 (as amended).
He stressed that it will not apply to household kerosene, cooking gas (LPG), compressed natural gas (CNG), or renewable energy products.
He further explained that the surcharge will not automatically take effect in January 2026, but only when the Minister of Finance issues an order through the official gazette.
Opposition to reforms
The former Speaker acknowledged that the tax reforms have faced intense opposition, mostly from those benefitting from the old system.
“At some point, it became clear that many of those opposed to the reforms were more interested in seeing the president fail than in building a sustainable economy,” he said.
READ ALSO: Tax Reform: Nigerians must now obtain tax ID to operate bank accounts – Dogara
Opponents, he argued, mischaracterised Mr Tinubu as dictatorial rather than decisive, noting “But thankfully, Mr President courageously held his line and refused to budge.”
Challenges ahead
Despite his praise for the reforms, Mr Dogara identified major challenges, namely uncertainty over interpretation, gaps in technology and cybersecurity, lack of professional capacity to manage the transition, and increased short-term compliance costs for businesses.
He, however, urged Nigerians to support President Tinubu to ensure the reforms are fully implemented and sustained, saying it will define his presidency.
He called on Nigerians to see themselves as stakeholders in a shared project to build a self-reliant, economically vibrant, and globally competitive nation.
![Senate Plenary [PHOTO CREDIT: @NgrSenate]](https://i0.wp.com/media.premiumtimesng.com/wp-content/files/2022/06/289380953_406782608161063_8537710940396434633_n.jpg?fit=1280%2C852&ssl=1)
