SERAP to Akpabio, Abbas: Align Tax Reforms with Human Rights or face legal action

Senate President Godswill Akpabio (left) and the House of Reps Speaker Tajudeen Abbas

Published By: Kazeem Ugbodaga

The Socio-Economic Rights and Accountability Project (SERAP) has appealed to Senate President Godswill Akpabio and Speaker of the House of Representatives Tajudeen Abbas to ensure Nigeria’s tax reform bills align with human rights principles and constitutional provisions.

The group stressed that the reforms should prioritise the needs of impoverished citizens while promoting transparency and accountability, while threatening legal action.

In a detailed letter dated 7 December 2024, signed by SERAP Deputy Director Kolawole Oluwadare, the organisation emphasised the importance of conducting comprehensive human rights impact assessments before the bills are passed.

It also called for these assessments to involve public participation and for their findings to be made widely available to ensure an inclusive legislative process.

SERAP raised alarm over several provisions in the Tax Administration Bill, citing risks of privacy violations and potential misuse of personal data.

The group criticised section 28(2)(c), which mandates financial institutions to disclose customer information to tax authorities. It also flagged section 57, which grants tax officers broad powers to access private property and personal documents, as a significant overreach.

“These provisions, especially the vague phrasing of terms like ‘any other information’ and ‘additional disclosure,’ risk enabling arbitrary and unjustifiable intrusions into Nigerians’ privacy,” the letter stated.

“The lack of adequate safeguards and oversight mechanisms increases the likelihood of abuse.”

SERAP further highlighted the absence of explicit data protection measures, warning that sensitive information such as home addresses could be mishandled or exploited.

The organisation urged the National Assembly to direct Attorney General Lateef Fagbemi to investigate and hold state governors accountable for the use of tax revenues collected since 2015.

SERAP expressed concern over credible reports of corruption and mismanagement of these funds, which have hindered access to essential public services such as water, sanitation, and education.

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“Several state governors continue to divert or mismanage tax revenue, denying millions of Nigerians access to basic services,” the group alleged.

SERAP also demanded the inclusion of mechanisms in the bills to ensure transparency in the utilisation of tax revenues.

It argued that without such measures, the reforms would fail to address systemic corruption and improve public trust in governance.

The group noted that some provisions of the bills undermine Nigerians’ fundamental rights and the rule of law. For instance, section 81 of the Tax Administration Bill effectively ousts the jurisdiction of courts in tax disputes, potentially denying citizens the right to seek redress.

“These provisions risk eroding trust in Nigeria’s legal system and disproportionately impacting marginalised groups,” SERAP warned.

The organisation emphasised that Nigeria’s tax system must balance the government’s need for revenue with the protection of individual rights. It urged the National Assembly to adopt a rights-based approach to tax reforms that promotes equity, accountability, and sustainable development.

SERAP vowed to pursue legal action if the contentious provisions are not revised to comply with human rights standards. “We will take appropriate steps to compel compliance in the public interest,” it stated.

The group concluded that well-structured tax reforms could unlock critical resources for human development, but only if implemented transparently and in alignment with Nigeria’s constitutional and international obligations.

The tax reform bills under consideration aim to streamline procedures for tax collection and improve revenue generation.

However, the lack of adequate safeguards and accountability mechanisms has raised concerns among civil society groups, with SERAP leading the charge to ensure that the reforms benefit Nigerians rather than exacerbating existing inequalities.