BDAN:  We Have no Fundamental Issues with the Proposed Tax Reforms

Nume Ekeghe

The Bank Directors Association of Nigeria (BDAN) has expressed support for the proposed tax reform bills, describing them as a step towards addressing Nigeria’s fiscal challenges.

The association stated  this during a courtesy visit by BDAN to  the Chairman of the Presidential Fiscal Policy & Tax Reforms Committee, Taiwo Oyedele in Abuja.  The  BDAN delegates led by their chairman, Mustafa Chike-Obi,  engaged with the Oyedele to   discuss the implications of The Nigeria Tax Bill HB. 1759 and The Nigeria Tax Administration Bill 2024 HB 1756 on the banking industry.

In a statement, BDAN commended the committee’s commitment to addressing Nigeria’s fiscal challenges during the discussions. The proposed reforms, according to the association, present an opportunity to eliminate inefficiencies and lay the groundwork for a more resilient and competitive economy.

Mr.  Chike-Obi reiterated BDAN’s commitment to policies that strengthen Nigeria’s financial ecosystem.

He said: “As an association, we are aligned with initiatives that promote fiscal accountability and support sustainable economic growth. While we have no fundamental issues with the proposed reforms, it is imperative to ensure that their implementation is inclusive and considers the nuances of the banking sector.”

He emphasised the importance of consultation and continuous dialogue, adding: “The banking industry thrives on stability and trust. We urge the Committee to maintain open channels of communication, ensuring that reforms are both effective and equitable. Collaboration is key to achieving the common goal of a stronger economy.”

Echoing this sentiment, BDAN’s Chief Executive, Adebukola Orenuga, highlighted the importance of stakeholder engagement in shaping fiscal reforms. “Tax policy should be a shared vision between the government and the private sector. As representatives of the banking sector, we are committed to providing constructive input that will help create an enabling environment for businesses and individuals alike,” she said.

Board Member, BDAN and Non-Executive Director of SunTrust Bank Nigeria Limited, Alhaji Yola emphasised the need to reassess the corporate tax levied on companies, which significantly contributes to the high tax burden the banks face. He said: “A comprehensive review of the current corporate tax rate of 30 per cent is essential to create a more enabling environment for Banks and other companies to thrive and support economic growth, and the economic objectives of the administration.”

 Oyedele welcomed the association’s input and stressed the importance of stakeholders’ active participation during the policymaking process.

 “We extended invitations to public hearings earlier in the process, but unfortunately, many stakeholders did not respond. However, moving forward, we encourage more proactive engagement to ensure policies are well-rounded and inclusive,” he remarked.