Commitment to Tax Reforms and Energy Transition
The Speaker of the House of Representatives, Abbas Tajudeen, has emphasized the National Assembly’s dedication to continuous tax reforms as a strategic tool to support Nigeria’s energy transition and climate responsibility. This commitment was highlighted during a one-day policy dialogue with legislators on taxation for a fossil fuel phase-out, held in Lagos on Monday.
At COP26, Nigeria announced its commitment to carbon neutrality by 2060. An Energy Transition Plan was unveiled shortly after to achieve this goal while also meeting the nation’s energy needs. Abbas, represented by the Chairman of the House Committee on Media and Public Affairs, Akin Rotimi, stated that energy transition remains a priority that cannot be deferred. Nigeria stands among the nations highly vulnerable to climate change, with issues like desertification, flooding, oil pollution, erosion, and biodiversity loss continuing to pressure the environment, food systems, and livelihoods.
The legislative agenda of the People’s House affirms that climate responsibility and economic stability must advance together. Agenda 8 on climate change and environmental sustainability underscores this commitment. The House is focused on strengthening the NSW Act, enforcing compliance with the Climate Change Act of 2021, and reviewing the National Climate Change Policy and Response Strategy.
Fiscal Policy and Renewable Energy
The House works to speed up renewable energy adoption, address gas flaring, and support the restoration of communities damaged by industry. It is also committed to understanding the implementation of Nigeria’s Energy Transition Plan, developed after COP26. Abbas highlighted the central role of fiscal policy in achieving the energy transition: “As the nation works towards a cleaner and more resilient energy future, fiscal policy sits at the centre of this transition.”
He explained that tax legislation can direct investments, encourage innovation, and discourage environmentally harmful practices. The House of Representatives recognizes that it can support the expansion of renewable energy, widen access to clean technologies, and ensure that the costs and benefits of the transition are shared equitably among all stakeholders. The House remains committed to examining how fiscal tools can strengthen coherence, close policy gaps, and advance low-carbon development.
Supporting Communities and Economic Stability
Our responsibility is to provide the legal and oversight frameworks that support national goals while ensuring that no community or economic sector is left behind. Abbas acknowledged that millions of Nigerians depend on traditional energy value chains for their livelihoods. The shift to cleaner alternatives must therefore protect the vulnerable and create new opportunities for jobs and industrial growth.
The progress being made on Nigeria’s tax reform agenda, led by the Executive and largely supported by the Legislature, deserves recognition. The tax reforms enacted in this Assembly reflect a significant shift in Nigeria’s governance framework. These reforms are not limited to technical adjustments; they promote a more efficient, transparent, and investment-friendly tax environment that supports growth, equity, and long-term stability.
Civil Society and Legislative Collaboration
Abbas added that the National Assembly also recognizes that no law, including tax law, is static. Our responsibility is to continually refine and strengthen our tax framework in response to changing realities as Nigeria navigates the global energy transition and fiscal policy becomes even more strategic. He appreciated the leadership of CISLAC and the broader civil society for sustaining this conversation.
In his comments, the Chairman of the House Committee on Foreign Affairs, Oluwole Oke, commended civil society for its continued advocacy. He emphasized the need for deliberation on issues related to good governance, sustainability, and the future of the world. Oke noted the resurgence in the world’s reliance on fossil fuels and stressed the importance of developing a strategy on where Nigeria wants to stand as a country, people, and parliament.
Role of Civil Society and Legal Reforms
Opening the dialogue, Executive Director of CISLAC, Auwal Musa (Rafsanjani), called the attention of the lawmakers to the activities of companies. He stated that fiscal policy, especially tax incentives, is one of the most powerful levers governments can use to shape economic behavior around the world. Countries have developed incentives to accelerate renewable energy, stimulate green industries, and encourage divestment from fossil fuels. Nigeria must not be left behind.
CISLAC has conducted a study that assesses taxes, such as incentives and holidays, in the country. However, incentives are fully effective only when they are well designed, transparently administered, and closely overseen, and this is where the National Assembly has a vital role to play. The lawmaking, oversight, budget, and appropriation processes are essential for making progress.
Energy Security and Poverty
Director of Policy Planning and Strategy at NEITI, Dr Bassi Dieter, said that Nigeria walks a tightrope between energy security and energy poverty. He emphasized the need to balance these critical aspects while exploring opportunities in energy transition based on rare earth elements, lithium, and rare earth minerals. Developing a new economy around these resources requires smart strategies, including refining capacity in-country and developing value chains.
Dieter also discussed the country’s ability to meet its net zero target, stating that it is attainable. Effective governance, government commitment, and proper funding are essential for achieving these targets. He highlighted the potential for external funding and the importance of green bonding as a critical area.
