Stakeholders in Kano Brainstorm on New Tax Reforms: A Deep Dive into Policy, Impact, and Public Sensitization

In a pivotal move to bridge the gap between policy and public understanding, a coalition of civic and financial organizations convened in Kano to dissect the Federal Government’s ambitious new tax reforms. This sensitization programme, far more than a routine briefing, represents a critical dialogue aimed at shaping the successful implementation of fiscal policies that will affect every tier of the Nigerian economy.

By Aminu Garko

Kano, Dec. 20, 2025 (NAN) – The Islamic Forum of Nigeria, in strategic collaboration with the Almubarak WAQF Foundation and the Financial Literacy Ambassadors of Nigeria, has organized a comprehensive public sensitization programme on the newly introduced tax reforms. This initiative underscores a growing recognition that effective fiscal policy requires not just legislation, but also widespread civic comprehension and buy-in.

The event, held at the Islamic Forum in Farm Centre, Kano, served as a melting pot of perspectives, attracting a diverse array of participants from the business community, financial institutions, government agencies, academia, and revenue stakeholders. [[PEAI_MEDIA_X]] This convergence highlights the multifaceted impact of tax policy, touching on commerce, governance, and individual financial health.

Alhaji Dalhatu Gwarzo, Executive Secretary of the Islamic Forum of Nigeria, framed the programme’s mission: to demystify the government’s policy direction for citizens, especially business owners. “Enhancing revenue generation is vital to national development,” Gwarzo stated, adding a crucial layer of context: “A proper understanding and voluntary compliance with tax policies are the bedrock of economic stability and growth. It transforms taxation from a perceived burden into a recognized contribution to national infrastructure, security, and social services.”

Guest Speaker Saleh Kwaru provided granular detail on the reforms, which are founded on three core principles: fairness, efficiency, and sustainability. A key operational shift clarified is that taxes will now be deducted primarily from business profits, while civil servants will continue with the Pay-As-You-Earn (PAYE) system via salary deductions. This distinction aims to tailor compliance mechanisms to different economic actors.

Perhaps the most significant revelation, as explained by Gwarzo, is the sweeping effort to consolidate approximately 70 different types of taxes. This reform directly tackles the long-standing plague of multiple taxation, a major hurdle for businesses that stifles growth and encourages informality. The goal is to create a streamlined, predictable system where businesses can operate without the fear of numerous, often overlapping, levies from different government tiers.

The progressive design of the new framework was strongly emphasized. It is engineered to exempt the economically vulnerable, reduce the burden on the middle class, and increase the tax responsibility on the wealthy. This approach aligns with global best practices for equitable fiscal policy, aiming to use taxation as a tool for social balance while ensuring revenue adequacy.

Financial experts at the event moved beyond abstract principles to outline tangible expected benefits:

• Improved Revenue Generation: A simpler, fairer system is projected to boost voluntary compliance, thereby widening the tax net and increasing government revenues without necessarily raising rates.

• Reduced Tax Evasion: By lowering complexity and perceived inequity, the reforms aim to diminish the incentive and opportunity for evasion.

• A More Transparent Fiscal System: Streamlining fosters accountability. It becomes easier for taxpayers to understand what they owe and for the government to track revenue. [[PEAI_MEDIA_X]]

The interactive session proved vital, as participants raised questions to clarify grey areas—likely concerning specific tax categories, implementation timelines, and mechanisms for addressing disputes. This Q&A component is essential for moving from policy announcement to practical operational knowledge.

The epochal event was attended by a broad coalition, including representatives from the banking sector, whose role in the financial ecosystem makes them critical stakeholders. The Managing Director of the News Agency of Nigeria (NAN), Malam Ali M. Ali, was represented by the Kano State Editor, Alhaji Aminu Garko, underscoring the national significance of this local dialogue.

In conclusion, the Kano brainstorming session transcends a mere news item. It marks an essential step in Nigeria’s fiscal evolution—a move towards inclusive policy-making where stakeholder engagement is recognized as key to transforming ambitious tax reforms from paper into practice, and ultimately, into tangible national development. (NAN) (www.nannews.ng)

AAG/BRM

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Edited by Bashir Rabe Mani