President Bola Tinubu’s Tax Reform Bills currently before the National Assembly, have remained in the front burner of national discourse. In this interview with journalists in Abuja, an Harvard University alumnus and expert who worked with former Presidents Umaru Musa Yar’Adua and Goodluck Jonathan, at the Presidential Villa, Abuja, Engr Abdullahi Hashim, the CEO/MD of Cubical Vertex Solutions Limited, engineering consulting company, re-echoed his incisive insights on the tax reform proposal. AljazirahNigeria’s Mariyah Adamu was there. Excerpts:
Amid reactions from Nigeria Governors’ Forum, NGF, experts as well as other stakeholders. What is your take on President Bola Tinubu’s Tax Reform Bills currently before the National Assembly?
It is one of the most wonderful reform bills I have ever seen. Besides, I can recall that recently Singapore embarked on such reform.
So, it is a global trend. Interestingly, The 38-member countries, Organisation for Economic Co-operation and Development, OECD, has also adopted policies similar to what the Tinubu-led administration is presenting in Nigeria.
The reform proposal is not unique to us if you analyze it. Nigeria has been operating with archaic tax systems for years. With the proposed reform, we now have an opportunity to upgrade our tax structure and make it more effective.
In this vein, we have to contextualise it with the realities on the ground. And it has to be in tandem with the global standards.
So, what I advocate is nothing but a consensus. It is a very wonderful thing, but the consensus is what will move the country forward. Based on what the Governors’ Forum has adopted, I think there is going to be a positive change.
After weeks of controversies and counter-arguments, the Governors’ Forum approved the Tax Reform Bills in addition proposed a new VAT-sharing formula for consideration in the original proposal. What is your take on this?
Well, that is to say Mr President is very inclusive in his leadership. Because if you bring a policy, you have to allow it to be consumed by the entire population. Now, that is to say that there is a paradigm shift in the policy and in the running of the administration.
Then the Governors perspective is one thing. They have to vent out their perspective based on their local realities too. So, that they will see it as a positive change for their people.
Since they are also elected, they have to inspire their people. They have to bring the yearnings of their people to the federal government.
Do you think the new proposal by the Governors is more realistic and an idea the National Assembly should consider?
Well, it is bound for debate.
So, I think there must be an equilibrium point, where they will meet, definitely.
In view of the Governors new proposition, what would you suggest. Should we abandon what the President has submitted to the National Assembly and work with the new proposal?
Because, of course, it would radically alter the initial plan submitted to the National Assembly.
I agree with you. If there are outdated provisions, operations, or policies within the tax bills, they need to be removed from the system. A new law will certainly come, but we need to contextualize it to fit Nigeria’s local realities. This will ensure that ordinary citizens are not unfairly burdened. That is my perspective.
When you talk about aligning policies with local realities, what specifically are you referring to?
By local realities, I mean factors like purchasing power and economic leakages. For example, let us talk about the Oil and Gas which according to figures about 15.6 million litres of petrol are smuggled out of Nigeria daily. This affects our internal consumption.
The NNPC has reported that Nigeria’s internal consumption is around 64.14 million litres per day. Now, if you subtract the 15.6 million litres being smuggled, along with an estimated 4.5 million litres drop in consumption due to rising costs and reduced purchasing power, you can see the impact. Adding the smuggled 4.5 million litres gives a total leakage of about 20.1 million litres.
This means Nigeria’s internal supply is short by that same 20.1 million litres. These are the kinds of realities I am referring to.
In terms of tax policy, concessions can be made for certain businesses. For example, rather than having businesses pay taxes directly to the government, they could receive waivers for specific periods in exchange for delivering critical infrastructure, such as roads, bridges, or other projects within their operational areas. This,a would ensure businesses contribute to national development while easing the burden of compliance.
How would you rate the level of awareness about the proposed tax reform bills in Nigeria and what do you think the government should do to tackle resistance from citizens?
The level of awareness about the tax reform bills in the country is extremely low—there is no doubt about it. Many people do not even know what tax reform is, let alone the details. The proposal itself is almost 400 pages long. Who has the time to read through it, especially when Nigerians are already dealing with increased fuel prices, rising hardship, and other pressing issues.
Most citizens do not have the time to understand the reform. Only a small fraction of people with vested interests, take the time to engage with it—and unfortunately, they often manipulate it to suit their personal agendas. But this is not about individual interests; it is about over 200 million people. Such critical policies should not be treated lightly.
So the government should do more, because the enlightenment is not there.
There concerns that the southern part of the country stand to benefit more from the tax reform due to the derivative sharing formula?
Who is saying that? How can that be possible?
They want to discredit the effort of Mr. President.
I think the point needs to be made that there must be a kind of openness. There must be a kind of awareness. There must be a kind of enlightenment, because it is not there.
The enlightenment is not there. It is really less. And as you mentioned, that derivative formula.
What comes to my mind is nothing but… If you look at the northern part of Nigeria, the majority of the businesses that are happening there, are in an informal way. Therefore, there are going to be leakages for the north. So, northern Nigeria will definitely want to vent out their anger, because they know the realities on ground are not going to meet up with what Mr. President wants.
But Mr. President brought this particular policy, not because he wants to shortchange any region or group. No, no, no. He wants to raise the capacity of Nigerians. He wants to reduce the enslavement process that some of the politicians are really dumping on the public.
He wants to make people independent. He wants to set people free. Because you have to think out of the box to make earnings daily.
Towards the end of last December and in the early 2025, we saw what appeared to be like a glimmer of hope with the resuscitation of Port Harcourt and Warri refineries. Do you think it is something we should celebrate? Given the fact that the Port Harcourt Refinery is producing below its installed capacity and Warri Refinery is not even producing petrol yet. It is just doing condensate and kerosene.
Yes, it is worth celebrating. Because some of the past administrations did not achieve that.
They even thought it was not going to happen.
But this administration did it. We have to appreciate it. Apart from the government refineries that are bouncing back to life. Private refineries are filling the gap.
Dangote Refinery, is already in operation. BUA Refinery is almost 70% in completion.
Out of the four government-owned refineries two are are working with the hope that the remaining ones are going to be in operation sooner.
So, I think it is a good thing. We really need to have a time also to celebrate it at a larger level. This is something that we need to believe as Nigerians, that this administration will definitely bring positive changes and development.
You said it is something we should celebrate. But for sustainability’s sake. And from all of the lessons that we have learnt.
All of the things we have done. How badly we have managed businesses as a government. What would you recommend for these refineries that have been resuscitated. Should they continue to remain under government purview. Or should we outrightly sell them?
Operation and maintenance under the private sector is one of the best because every private person that invests a single penny inside any business wants a rate of return for it. So, he will not play with the business. He will definitely maintain it as it should be.
If you look at all the developing countries concessions and Public-private partnership, PPPs is gaining popularity. Which is a very good way to go.
You are a member of Council for the Regulation of Engineering in Nigeria, COREN, and one issue that has become a recurring decimal is the issue of building collapses.
How did we get to this level. And what is the way out?
For building collapses, there are policies on the ground which are not being implemented.
And the operation in Nigeria is to the extent that just one person will just call a foreman to build a house for him. Without taking cognizance of the rules and the standards. So, what I will just say is there should be enforcement of all the laws.
And maybe punishable part of the laws should also be enforced. So, that everybody will sit up. From the client to the contractors to the engineers.
I think that is just it. You will just call anybody on the road that you see building. And they say, okay, I saw you in one building.
Come and build for me without taking cognizance of all the necessary codes that we normally apply. Sadly, people engage laymen who knows how to practically build a house. But cannot conform to certain professional standards.
On the part of the COREN, I think they should just enforce the punishable part of the laws.
Apart from quackery and enforcement. How do we deal with the menace of substandard materials?
Today, if you see iron 18, it is as tiny as this last finger of mine. If you see a 0.4 roofing sheet, it is almost like paper.
So, what is really happening? How have we become a dumping site for all kinds of substandard material? As a result of this anomaly you can have the right engineer on the site. Enforce the right laws, but built with substandard materials and everything will come crashing down on you.
I think there should be a collaboration between the Standard Organisation of Nigeria, SON, and maybe Federal Competition and Consumer Protection Commission, FCCPC. It is very vital.
They should link up along with all the professional bodies like the Nigerian Institute of Civil Engineers, Nigerian Building and Road Research Institute, NBBRI, and COREN, to sit down and talk about this a way out of the challenge. NBBRI is very important in terms of testing materials.
They have a very big Laboratory for testing of materials.
I think one area the government has not been doing well is in the area of sanctions?
Exactly. We do not prosecute people for going against building codes. The most that happens is they seize the land and the contractor will go scout free and still go somewhere to continue.
I think we need to checkmate the system too because the system needs to be checkmated accordingly. And if you cannot set an example, then the problem will remain.
But if you set a good example, the problem will definitely be reduced, at least, even if it does not go away completely. So my observation is let the government also look into this matter. Because when you are talking about enforcement, you are talking about all the law enforcement agencies.
And that depends on what problem caused what. So they have to look into the matter and then address the matter accordingly.
Another challenge in the sector is the alarming rate of housing deficit. Does this worry you?
Yes. It is a very big challenge, with the rising population and rising cost of materials, adequate housing has become very difficult to achieve.
For instance, I supervised six stand-alone houses in Katampe and as at the time we began building the housing units and the time we finished, there was almost 400% increment in the cost of building materials. So, the toll of inflation on initially cost pushed up N200,000,000 million selling price per unit to over N800,000,000 million.
Don’t you think houses or buildings are overpriced in Nigeria?
Absolutely. I think they are being overpriced.
Realistically, they are being overpriced. FCCPC is very important to work on this.
Why can’t Nigeria have an efficient mortgage policy that allows people to enjoy 20 or 30 years housing payment plan?
One of the reasons is the implementation gap of policies. When you bring policies that are outside of the country and you want to apply it, there is going to be an implementation gap. It is going to be very difficult for you to implement.
In London, for instance, they are using London Interbank Operating Rate, LIBOR. But in Nigeria, if you use Nigerian interbank operating rate, it is going to affect you.
Not because of anything but you can set your life for 30 years in England without having increase in terms of percentage. You can even project the percentage of increase and live your life in England and in Switzerland.
But when you come to Nigeria, within three months, you have to reassess. Because of fluctuations, you cannot even plan. That is one of the things that we have in Nigeria. Price fluctuation and policy somersault.
You worked with former Presidents Umaru Musa Yar’Adua and Goodluck Jonathan at the Presidential Villa, Abuja, what was the experience like?
It is impressive that I had the opportunity to serve under former Presidents Umaru Musa Yar’Adua and Goodluck Jonathan at the Presidential Villa, Abuja. My role in the office, which is indeed the epicenter of Nigeria’s political landscape, gave me a unique perspective on the nation’s governance.
As I reflect on my experience, I realize that my office was instrumental in driving Public-Private Partnerships, PPPs, in Nigeria. This was a crucial aspect of the country’s development, as it fostered collaboration between the private sector and the government. During my time under Yar’Adua’s administration, Nigeria aimed to become one of the twenty largest economies in the world by 2020, with a focus on infrastructure, power, energy, food security, and wealth creation.
My experience working on strategic initiatives that promoted private sector investment and government collaboration was invaluable. I’m proud to say that my efforts had a transformative impact on the nation’s development.
