Bridging revenue gap central to fiscal stability – Speaker Abbas

By Christiana Ekpa

The Speaker of the House of Representatives Rt. Hon. Abbas Tajudeen, Ph.D., GCON, has stated that Nigeria can bridge the gap between the national budget and expenditure with sustained revenue generation.
Speaker Abbas noted that bridging that gap through sustainable revenue is central to fiscal stability.
Giving his goodwill message at the inauguration of the Nigeria Revenue Service (NRS) Headquarters in Abuja on Tuesday, the Speaker highlighted some economic reforms caused by the current administration of President Bola Ahmed Tinubu, GCFR, especially relating to revenue generation and taxation.
Speaker Abbas pointed out that the challenge now is to sustain and deepen NRS’ performance.
He said, “This is particularly important when considering the scale of national expenditure. Nigeria’s budget has expanded significantly, with projections exceeding N50 trillion and rising commitments to infrastructure, security, education, and social services.
“The gap between what the nation seeks to achieve and what it currently earns remains substantial. Bridging that gap through sustainable revenue is central to fiscal stability.
“The question, therefore, is not whether revenue must increase; it is how it increases.”
The Speaker noted, “Three issues will determine that outcome. The first is consistency. Revenue administration loses credibility when outcomes depend on discretion rather than rules. The NRS must demonstrate that its processes are stable across sectors, regions, and categories of taxpayers.
“The second is visibility. A modern tax system cannot operate as a closed structure. Data, processes, and decisions must be intelligible, not only to government but to those who are subject to it. This is central to compliance.
“The third is restraint. The authority to collect revenue must be exercised with discipline. Overreach may produce immediate gains, but it weakens trust and compliance over time. These are not operational preferences. They are institutional requirements.”
Speaker Abbas said the emergence of the NRS, formerly the Federal Inland Revenue Service, must be understood within that context. “It is not only a renamed institution; it is a repositioned one, with a broader mandate and higher expectations.”
He also noted that the performance of the NRS recently has been notable. “In 2025, collections exceeded target, reaching over 28 trillion, with significant growth driven by non-oil revenues,” he said, adding that, “This reflects not only improved systems but also a shift towards voluntary compliance and better coordination.”
Speaker Abbas stated that institutions reveal themselves not only through laws or leadership but also through the systems they sustain over time.
While saying the building invites a different kind of reflection, the Speaker noted, “It is not simply about scale or design. It is about whether Nigeria now possesses the institutional discipline to convert authority into consistent outcomes.”
Speaker Abbas emphasised that for many years, Nigeria’s revenue system struggled less from a lack of effort than from a lack of coherence. “We operated multiple regimes, overlapping mandates, and fragmented legal frameworks. The result was predictable: high effort, low yield, and limited public confidence.”
What has changed under the Tinubu administration, the Speaker stated, is not only the policy direction but also the underlying logic of the system.
He said, “The reforms have sought to align rules, institutions, and incentives within a single framework. The 2025 Tax Reform Acts represent that shift in its clearest form. They reorganised the architecture within which revenue is generated, assessed, and enforced, and provided the basis for a more integrated system.”