By our correspondent

In a spirited legislative session marked by heated debates and strategic interventions, Senator Ahmed Wadada Aliyu (SDP, Nasarawa West) emerged as a key figure in shaping the future of Nigeria’s revenue collection system. As the Senate took up the Nigerian Revenue Service Establishment Bill for its second reading, the discussion moved beyond the technicalities of taxation and into the core of national fiscal responsibility.

Presented by Senator Sani Musa, Chairman of the Senate Committee on Finance, the bill sought to streamline and enhance the operations of the country’s revenue collection agency. With Nigeria grappling with low oil revenues and sluggish non-oil sector performance, lawmakers broadly agreed on the need for reform. But the real battle came during the clause-by-clause review, particularly around Clause 22, Subsection A—the financial heartbeat of the proposed agency.

This clause proposed that 3% of all revenues collected be retained by the Revenue Service for its operations. While the logic was to empower the agency with sufficient funds, critics raised concerns over the potential for excess and inefficiency.

Enter Senator Wadada, who challenged the 3% provision with a firm grasp of global practices and a clear concern for national equity. Drawing comparisons with international benchmarks—where revenue agencies typically operate on just 1% of collected revenues—he warned that Nigeria’s proposal risked overfunding the agency at the expense of states and other public services.

Wadada didn’t mince words. He pointed out that a 3% allocation could surpass the annual budgets of up to 17 Nigerian states, painting a stark picture of the fiscal imbalance such a provision could create. Citing Order 1B of the Senate Standing Rules, he called for a more measured, responsible approach—suggesting a 2% allocation instead.

His amendment was more than just a numbers game; it was a call for fiscal restraint in a country where public spending often draws skepticism. The proposal found quick support from Senator Rufai Hanga and ultimately, the Senate itself, which adopted the amendment through a resounding voice vote.

This moment, though technical in nature, carried significant political and economic weight. It signaled a shift in legislative priorities—toward prudence, accountability, and fairness in the use of public funds.

For Senator Wadada, it was a defining moment in his tenure, aligning him with reformers seeking to curb waste and promote transparency. And for the Senate, it was a declaration that even in the minutiae of budget lines and agency funding, Nigeria’s lawmakers are beginning to reckon more seriously with the responsibilities of governance.

The adoption of the 2% allocation may seem modest on paper, but its implications are far-reaching. It strikes a balance between empowering the Revenue Service and preserving vital resources for broader national development. Above all, it reflects the growing resolve within the Senate to treat every naira as a public trust.