Previously, Finance Bill Consultations Were Conducted Around Draft Legislation

Nigeria's Federal Ministry of Finance has invited the public and other stakeholders to submit proposals for the Finance Bill 2027, marking a potential shift in how the annual fiscal legislation is developed. In a notice issued Thursday, the ministry asked Nigerians, businesses, investors, professional bodies, civil society organisations, academia, public institutions and other stakeholders to propose specific changes they want reflected in the country's fiscal laws. Contributors are invited to submit practical, evidence-based legislative or regulatory reforms aimed at strengthening Nigeria's fiscal framework, improving the business and investment environment, enhancing fiscal transparency and accountability, and supporting sustainable economic growth.

Previously, Finance Bill consultations were conducted around draft legislation. In 2020, the ministry released a draft Finance Bill for public consultation. During development of the Finance Bill 2022, then-Minister of Finance, Budget and National Planning Zainab Ahmed said the ministry had engaged a wide range of stakeholders through a technical committee, with the proposed bill later presented to the National Economic Council for additional input from governors.

The 2027 initiative calls for proposals directly into the bill itself. The ministry asks contributors to identify laws and provisions that should be amended and, where possible, provide proposed drafting language, noting that general recommendations would be considered but could be less useful for legislative drafting. Submissions can cover tax policy, revenue mobilisation, compliance, taxpayer services, tax certainty, incentives, customs and excise, and coordination among revenue agencies.

The ministry also seeks proposals on fiscal policy and management, including revenue and expenditure management, budgeting, public financial management, fiscal sustainability, public debt and intergovernmental fiscal relations. Contributions are also open on fiscal responsibility, transparency and accountability, including budget discipline, financial reporting and disclosure, monitoring and institutional oversight. Stakeholders in the financial and economic sectors are invited to submit on capital markets, investment and cross-border capital flows, anti-money laundering, financial reporting and other regulations with significant fiscal or economic implications.

The ministry also opened the door to proposals on other laws, regulations, policies and institutional arrangements requiring amendment, harmonisation or introduction to improve Nigeria's competitiveness and economic governance. Priorities include addressing gaps, ambiguities, inconsistencies and implementation challenges in existing laws; reducing unnecessary regulatory and administrative burdens; improving ease of doing business; harmonising conflicting provisions; reducing leakages and regulatory arbitrage; and improving revenue mobilisation without unnecessarily constraining economic activity. Nigeria's Finance Acts have progressively reshaped the tax system.

The 2019 Act raised VAT from five per cent to 7.5 per cent and introduced a N25 million turnover threshold for small businesses. The 2020 Act cut minimum corporate tax to 0.25 per cent and exempted minimum-wage earners from Personal Income Tax. The 2021 Act introduced a six per cent tax on qualifying non-resident digital companies and a N10-per-litre sugar tax.

The 2022 Act raised Tertiary Education Tax from 2.5 per cent to three per cent, removed incentives for gas-flaring companies and introduced a 0.5 per cent levy on eligible imports from outside Africa. The 2027 call is notable for explicitly inviting public proposals and providing a structured mechanism for translating them into possible amendments.